Study
| EST. READ TIME 2 MIN.Alberta most attractive Canadian jurisdiction for global oil and gas investment
The Fraser Institute’s 8th annual survey of petroleum industry executives shows that barriers to investment in oil and gas exploration and production facilities in various jurisdictions around the globe include high tax rates, costly regulatory obligations, uncertainty over environmental regulations and the interpretation and administration of regulations, and concerns over political stability and security of personnel and equipment. A total of 710 respondents participated in the survey, providing sufficient data to evaluate 156 jurisdictions.
A Policy Perception Index captures investors’ perceptions on conditions affecting investment decisions and provides a comprehensive assessment of each jurisdiction. When considering policy independently from the size of a jurisdiction’s reserves, the 10 least attractive jurisdictions for investment (starting with the worst) are Venezuela, Bolivia, Ecuador, Iran, Russia—Eastern Siberia, Russia—Off shore Arctic, Iraq, Uzbekistan, Democratic Republic of the Congo (Kinshasa), and Turkmenistan. The 10 most attractive jurisdictions for investment worldwide are Oklahoma, Mississippi, Saskatchewan, Arkansas, Manitoba, Alabama, Kansas, Texas, North Dakota, and Wyoming.
Five jurisdictions saw considerable improvements over last year: French Guiana, Uruguay, Suriname, Guyana, and Romania. However, a substantial number of jurisdictions saw their barriers to investment increase significantly over the past year. Forty-one of the 156 jurisdictions had their scores deteriorate by 10 points or more. The biggest drops were for Nova Scotia, Yukon, Georgia (the country), Spain—Offshore, Kuwait, South Africa, Turkey, Spain—Onshore, Lebanon, Egypt, Tanzania, and Mali.
As in previous surveys, investors indicate that they continue to turn away from jurisdictions with onerous fiscal regimes, political instability, and land claim disputes. Similarly, investors prefer to avoid jurisdictions with costly, time-consuming uncertain regulations. Other factors being equal, competitive tax and regulatory regimes can attract investment and thus generate substantial economic benefits.
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Taylor Jackson
Independent Researcher
Taylor Jackson is an Independent Researcher and a former Senior Policy Analyst with the Fraser Institute. He holds a B.A. andM.A. in Political Science from Simon Fraser University. Mr. Jackson is the coauthor of a number of Fraser Institute studies, including Safety in the Transportation of Oil and Gas: Pipelines or Rail?, and the Fraser Institute's annual Global Petroleum Survey, and Survey of Mining Companies. He is also the coauthor of a book chapter on the past, present, and future of Canadian-American relations with Professor Alexander Moens. Mr Jackson's work has been covered in the media all around the world and his commentaries have appeared in the National Post, Financial Post, and Washington Times, as well as other newspapers across Canada.… Read more -
Gerry Angevine
Senior Fellow, Fraser Institute -
Frazier Fathers
Frazier Fathers was a 2013 summer research intern with the Fraser Institute. A dual masters graduate, he holds a Masterof Arts in Political Science from the University of Windsor and a Master of Public Policy from the University of Michigan.… Read more -
Kenneth P. Green
Senior Fellow, Fraser InstituteKenneth P. Green is a Fraser Institute senior fellow and author of over 800 essays and articles on public policy,published by think tanks, major newspapers, and technical and trade journals in North America. Mr. Green holds a doctoral degree in environmental science and engineering from UCLA, a master’s degree in molecular genetics from San Diego State University, and a bachelors degree in general biology from UCLA.Mr. Green’s policy analysis has centered on evaluating the pros and cons of government management of environmental, health, and safety risk. More often than not, his research has shown that governments are poor managers of risk, promulgating policies that often do more harm than good both socially and individually, are wasteful of limited regulatory resources, often benefit special interests (in government and industry) at the expense of the general public, and are almost universally violative of individual rights and personal autonomy. Mr. Green has also focused on government’s misuse of probabilistic risk models in the defining and regulating of EHS risks, ranging from air pollution to chemical exposure, to climate change, and most recently, to biological threats such as COVID-19.Mr. Green's longer publications include two supplementary text books on environmental science issues, numerous studies of environment, health, and safety policies and regulations across North America, as well as a broad range of derivative articles and opinion columns. Mr. Green has appeared frequently in major media and has testified before legislative bodies in both the United States and Canada.… Read more