Much has already been written about the 2015 Alberta
budget and its effect on individual taxpayers, in particular
the number of significant changes to personal income taxes, taxes
on alcohol and gasoline, user fees and additional charges.
For the oil and gas sector, there are very few changes to the
existing tax regime, but there are a number of important points and
assumptions that the sector should be aware of:
No change to royalties or
taxes. Most importantly, there will be no change to either
corporate income tax rates or to the oil and gas royalty
Low commodity prices
forecast. The province is producing its revenue forecasts
on the basis of significantly depressed oil and gas prices until at
continue to be depressed. With continuing depressed prices
and no change to royalty rates, the government is forecasting that
revenues from renewable resources will be significantly below 2014
levels through their entire forecast period.
Falling energy sector
spending. The government is predicting that spending in
the oil and gas sector will fall 30% in 2015 and a further 5% in
2016 before starting to recover.
Oil sands continue to
grow. The government is expecting a further 500,000 bpd of
oil sands production already under construction to come on stream
in the next few years and does not expect significant volumes of
such production to be shut-in.
Pipelines are key to
growth. The government remains committed to new pipelines:
it states that while rail terminal construction has eased some
bottlenecks, the construction of new pipelines continues to be the
key to continuing to grow oil production.
Cost pressures may
ease. The government believes that the slowdown in oil and
gas spending may ease some labour and capital cost pressures.
A deficit of just under $5 billion for this fiscal year is
forecast, and a spring election is now widely expected to be
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).