As Notley sworn in, oil & gas sector braces for royalty review

With Rachel Notley officially sworn in as Alberta’s 17th premier, the fate of the province’s oil patch is top of mind for many.

Albertans are wondering about a possible royalty review and other potential tax changes.

Jennifer Winter with the School of Public Policy tells 660News, it’s unlikely anything will happen right away and the young government will likely have other priorities it wants to tackle first.

Winter noted even when it does happen; a royalty review doesn’t automatically mean rates will go up.

“What it could end up doing is making the system less complicated,” she said. “It could end up making the risk sharing between governments and companies.”

Winter explains energy companies, as well as other industries, would be wise to meet with the government and lay out in black and white exactly what any increase would mean.

“Capital that’s invested in Alberta could just as easily be invested in other jurisdictions such as B.C. and Saskatchewan,” she said.

Winter adds the new NDP Government needs to take a proactive approach and says it would be irresponsible of the oil and gas sectors to just wait and complain.

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