For Immediate Release: November 23, 2015
CAODC Reacts to the Alberta Climate Leadership Plan
The Canadian Association of Oilwell Drilling Contractors (CAODC) is calling on the Alberta Government to reinvest every dollar contributed by the oil and gas industry through new carbon taxes back into the industry. Carbon taxes should be reinvested at the direction of an independent advisory board to ensure the greatest action on carbon emissions.
Mark Scholz, President of CAODC says “it is unclear how much of the revenue collected through carbon taxes will be reinvested back into the oil and gas industry. If this is a truly revenue neutral tax, every dollar raised through new carbon taxes should be made available to industry in order to reinvest into new technology to achieve emission reductions.”
Furthermore, the Association is calling on the Alberta Government to reduce oil and gas royalties by the incremental increase from new carbon taxes. “Alberta is one of the highest cost jurisdictions in the world to operate. The introduction of new carbon taxes, unless offset by lower royalties, has effectively reduced Alberta’s competitiveness and future employment through additional costs. In order to offset these additional costs, lower royalties should be considered,” says Scholz.
Finally, the Alberta Government must provide leadership, not only on climate change but also on market access. In the absence of leadership to advocate for pipeline infrastructure and access to international markets, the future of oil and gas in Alberta remains uncertain. “The Alberta Government has made the argument that if Alberta shows leadership on the climate file, access to markets is a logical outcome. It is our opinion that anything less, in this case, would be considered a failure.”
The Canadian Association of Oilwell Drilling Contractors (CAODC) represents Canada’s drilling and service rig industry.
For more information, contact:
Canadian Association of Oilwell Drilling Contractors