Oil industry demands drilling stimulus

An oil and natural gas industry association is pressing Ottawa to develop an economic stimulus package aimed at boosting drilling activity in Western Canada.

MEDICINE HAT — An oil and natural gas industry association is pressing Ottawa to develop an economic stimulus package aimed at boosting drilling activity in Western Canada.

The Small Explorers and Producers Association of Canada is calling on the Conservative government to reform federal tax write-offs for drilling projects.

Currently, companies can deduct 100 per cent of the federal taxes they incur from drilling over a three-year period after the wells have been punched.

However, the precipitous drop in drilling activity this year, led by low natural gas prices, has prompted the association to ask Ottawa to refund taxes on drilling after only 12 months.

Gary Leach, association’s executive director, says the measure would encourage energy companies to boost drilling activity, creating jobs across Western Canada.

“The cost to the government is going to be nil,” Leach said Thursday. “This is not like the Ontario bailout, where the government put billions into General Motors and Chrysler to save a few thousand jobs.

“We’re just asking them to leave some money in the pockets of the private sector and let us put it to work creating jobs.”

Leach said the initiative has been gaining support among Alberta Conservative members of Parliament and the industry also appears receptive to the idea.

Just Posted

Blood donations needed in Central Alberta: Canadian Blood Services

357 donors are needed before Aug. 26 at the Red Deer clinic

Photos: Smoky conditions in Red Deer

Red Deer and area is experiencing high risk air quality.See related: Red… Continue reading

PHOTO: Rainbow Block Party at Red Deer’s West Park

The Trans and Non-Binary Aid Society hosted a Rainbow Block Party at… Continue reading

WATCH: Red Deer man shaves beard for Mustard Seed

‘I have spent 30 years of my life being addicted to both alcohol and drugs’

US newspapers to Trump: We’re not enemies of the people

NEW YORK — Newspapers from Maine to Hawaii pushed back against President… Continue reading

Liberal MP Iqra Khalid accused of giving award to purveyor of anti-Semitism

OTTAWA — A Liberal MP is under fire for presenting a ”certificate… Continue reading

Ottawa intervenes to get 13-year-old ball player to Little League World Series

OTTAWA — Thirteen-year-old Dio Gama will get to play baseball in the… Continue reading

Esther, celebrity ‘wonder pig,’ diagnosed with cancer after CT scan

GUELPH, Ont. — A celebrity pig whose owners raised more than half… Continue reading

Feds preparing response in case Trump follows through on auto tariff threat

OTTAWA — With threats of devastating U.S. tariffs hanging over the auto… Continue reading

Committee to decide how millions in Humboldt Broncos donations are split

SASKATOON — Lawyers for the families of some of those who died… Continue reading

Boy, 11, dies after being struck by payloader on southern Alberta ranch

BOW ISLAND, Alta. — A boy has died after an accident on… Continue reading

Liberals look at creating federal holiday to mark legacy of residential schools

OTTAWA — The federal Liberal government wants to establish a holiday to… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month