The Fraser Institute: Manitoba Now Seen as Best Bet in Canada for Oil and Gas Investment; Alberta Continues to Lose

CALGARY, ALBERTA, Jun 24 (MARKET WIRE) --
Manitoba has dethroned both Saskatchewan and Alberta as the most
attractive Canadian province or territory for oil and gas investment,
according to an international survey of petroleum executives and managers
released today by independent research organization the Fraser Institute.

Saskatchewan, which was the top province in 2008, drops to the number two
spot in Canada. But investors are most critical of Alberta, ranking the
province as the least attractive among Canada provinces ranked for oil
and gas investment. Aside from Manitoba and Saskatchewan, Alberta now
also trails Nova Scotia, Ontario, Quebec, British Columbia, and
Newfoundland and Labrador.

The results are contained in the Global Petroleum Survey 2009, available
as a free pdf from the Fraser Institute web site at
www.fraserinstitute.org.

"The survey results clearly show the industry's dissatisfaction with the
Alberta government's misguided policies. Punitive royalty rates, a lack
of consultation, and a growing anti-energy bias are common complaints
about the Stelmach government," said Gerry Angevine, Fraser Institute
senior economist and coordinator of the annual petroleum survey.

"Meanwhile, Manitoba has quietly encouraged oil and gas investment with
low royalties and an easy to understand regulatory framework."

While the survey shows a reordering among Canada's provinces, it also
shows Canada losing ground on a global scale.

Manitoba, the highest ranked province in 2009, is 21st internationally.
Saskatchewan fell from 10th (of 81) in 2008 to 38th (of 143) worldwide.
Nova Scotia ranked 54th, Ontario ranked 60th, Quebec 68th, British
Columbia 71st, Newfoundland and Labrador 82nd, and Alberta 92nd.

Alberta's poor showing puts the province behind China, the Philippines,
and Brazil as an attractive place to invest in upstream oil and gas
development.

Canada's three territories also dropped sharply in this year's survey.
The Yukon fell to 105th (of 143) from 31st (of 81); the Northwest
Territories dropped to 120th from 65th, and Nunavut is ranked 121st.
Nunavut was not ranked in 2008.

"The main issue for the territories seems to be uncertainty around land
claims issues and too many overlapping regulatory agencies," Angevine
said.

"You can see these issues reflected in the stalled MacKenzie Valley
pipeline development in the Northwest Territories."

The top 10 most attractive jurisdictions for investment in this year's
survey are: Arkansas, Alabama, Kansas, Austria, Mississippi, Nebraska,
South Dakota, Texas, Oklahoma, and Indiana.

Jurisdictions receiving the highest number of negative comments are:
Bolivia, Niger, Venezuela, Ecuador, Sudan, Russia, Bangladesh, Nigeria,
Kazakhstan, and Ethiopia.

"Petroleum executives responding to the survey say they turn to different
jurisdictions when confronted with high royalty fees and tax rates,
inadequate infrastructure, price controls, and labor shortages," Angevine
said.

"They prefer to avoid jurisdictions with costly and time-consuming
regulations. Other factors being equal, competitive tax and regulatory
regimes can attract investment and generate substantial economic
benefits. Policy makers should recognize that overly strident regulations
and anti-energy sentiment can be costly in terms of lost revenue and
jobs."

The Global Petroleum Survey 2009 is designed to help measure and rank the
investment climate of 143 oil and gas producing regions.

A total of 577 respondents completed the survey questionnaire this year,
providing sufficient data to evaluate 143 jurisdictions. This is a
substantial increase from the 2008 survey, in which 81 jurisdictions were
rated, and the inaugural 2007 survey, in which 54 jurisdictions were
rated.

The survey questionnaire sought the opinions of senior executives and
managers on a range of issues including royalties and licensing
agreements, taxation, the cost of regulatory compliance, trade and labour
regulations, and political stability among others.

The Fraser Institute is an independent research and educational
organization with locations across North America and partnerships in more
than 70 countries. Its mission is to measure, study, and communicate the
impact of competitive markets and government intervention on the welfare
of individuals. To protect the Institute's independence, it does not
accept grants from governments or contracts for research. Visit
www.fraserinstitute.org.

Contacts:
The Fraser Institute - Media Contact
Gerry Angevine
Senior Economist
(403) 216-7175, Ext: 224
gerry.angevine@fraserinstitute.org

The Fraser Institute
Dean Pelkey
Director of Communications
(604) 714-4582
dean.pelkey@fraserinstitute.org
www.fraserinstitute.org

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