Key facts
- Alberta plans to announce a new royalty framework in November to encourage new oil and gas production.
- The provincial government aims to boost oil production and export more crude to Asia.
- Alberta is proposing a 1 million-barrels-per-day oil pipeline to the British Columbia coast.
- The Alberta government expects the West Coast Oil Pipeline project to be listed as a project of national interest by October 1, 2026.
- All approvals and permits for the pipeline are expected by September 2027.
- Canada's marginal effective tax rate on new business investment will fall from about 13% to 6.4%.
Alberta's government is preparing to introduce a new royalty framework in November aimed at stimulating investment in oil and gas production. Premier Danielle Smith stated that the new regime is designed to encourage companies to develop new production capacity, which could help fill the proposed 1 million-barrels-per-day West Coast Oil Pipeline. The province is actively pursuing this pipeline project, intended to diversify export destinations for its crude oil beyond the United States and towards Asia. Alberta has submitted the project to the federal Major Projects Office for consideration as a project of national interest, with expected listing by October 1, 2026, and all necessary approvals by September 2027. The provincial government intends to partner with Trans Mountain Corporation and Pembina Pipeline to advance the project. In parallel, the federal government has announced a significant reduction in the investment tax rate, lowering Canada's marginal effective tax rate on new business investment to 6.4%, which is competitive globally.