New act helps Alberta reach energy potential
The Redford government is proposing legislation that will help Albertans get better prices for their energy resources.
The Building New Petroleum Markets Act will boost the government’s ability to respond more quickly to changing market conditions and empower it to proactively seek out opportunities for Alberta’s energy products. The legislation allows the Minister of Energy to set the strategic priorities of the Alberta Petroleum Marketing Commission (APMC).
“Reaching new energy markets by supporting and encouraging the development of infrastructure is critical to get the best value for our energy resources. We need to ensure the APMC’s actions align with the interests of Albertans and the strategic priorities of the government.”
The APMC is responsible for selling the conventional oil that government receives in lieu of cash royalties and for implementing the Bitumen Royalty-In-Kind (BRIK) policy.
BRIK barrels have been used to support two projects to date – the Sturgeon Upgrader in Redwater and TransCanada’s proposed Energy East pipeline which will transport energy products to eastern Canadian refineries.
“Cooperation between industry and government in support of necessary infrastructure projects like the proposed Energy East Pipeline will play an important role in helping to increase market access for the province. Working together will ensure these vital resources move to market in a safe and reliable way.”
The proposed Building New Petroleum Markets Act will:
- Allow the Minister of Energy to provide specific direction to the APMC, based on the public interest and government priorities;
- Modernize and improve the corporate rules under which the APMC currently operates, including giving the government the ability to appoint a board of up to seven directors, instead of the current three, including expertise from outside the public service; and
- Clarify financial tools available to the APMC, which could include providing loans or making equity investments in projects, when authorized by the government.
Under the Building Alberta Plan, our government is investing in families and communities, living within our means, and opening new markets for Alberta's resources to ensure we're able to fund the services Albertans told us matter most to them. We will continue to deliver the responsible change Albertans voted for.