Alberta's Industrial Heartland is encouraging you to let the Province know your thoughts or questions about the Royalty Review Panel's list of 11 principles.
Friday is your last chance to let the Provincial Government know your thoughts or questions about the Royalty Review to help improve and get more value out of our energy resources.
Alberta's Industrial Heartland Executive Director Neil Shelly says the Province needs to recognize Albertans' get more back in economic and tax benefits by processing here.
Shelly calls the review a turning point for Alberta.
Shelly points out most industries in this area are involved in the value added sector, like processing oil and natural gas into semi-consumer ready products.
Shelly suggests the Province possibly provide a system within the royalty system to recognize companies that process oil and gas resources in Alberta with a royalty holiday, as opposed to those who ship them out of Province in the commodity form.
Shelly adds adding more value to our products is one way to protect against boom and bust cycles. Shelly says "we have a glut of propane in Alberta right now." Shelly adds "if you were to pull propane out of the ground, and export it as a raw commodity product, you get some economic activity and some royalties out but it stops there." Shelly points out "if you take that propane and process it into petrochemicals, so from propane you can make propylene and from there you can make Polypropylene Plastics." Shelly adds theres are growing market for Polypropylene, especially in emerging economies for materials like tupperware and vehicle dashboards.
Shelly says when the Province sets the royalty system, they need to look at what Albertans get from of their energy resources, and recognize we get more back in economic and tax benefits by processing here.
Shelly points out "we get even more economic activity from construction and operation of plants, the company and employees will pay taxes, so theres a net benefit to Alberta by adding more value here than shipping out raw commodities."