Alberta plans tax breaks, incentives for oil firms

CALGARY, Alberta (Reuters) – Alberta will offer tax breaks and drilling incentives to small and mid-sized energy companies struggling to raise cash due to tight credit markets and a collapse in crude prices, the oil-rich Canadian province’s premier said on Thursday.

The plan would also help protect energy-sector jobs by promoting the environmental cleanup of old oil well sites, as the province tries to stave off a big drop revenues from its biggest industry, Premier Ed Stelmach said.

But he stressed the program would not include changes to Alberta’s new royalty system, which the industry railed against, saying it made some investments unprofitable.

Banks will be asked to loosen their purse strings for the junior and mid-sized energy players as part of the initiative, which could be launched late this month or in early March.

Reuters