Alberta's Carbon Tax Policies Threaten Energy Competitiveness with US

A study by Jack Mintz analyzed the impact of carbon policies on the competitiveness of oil, natural gas, and electric power production in Alberta compared to Texas and New Mexico.

The research found that without carbon policies, Alberta's existing tax and royalty system is competitive with the US, except for conventional oil.

However, with a carbon tax at $95, Alberta's conventional oil becomes disadvantaged, while the oil sands lose their tax advantage compared to projects in New Mexico or Texas. Natural gas production remains competitive.

The study also found that an increased effective carbon tax rate will significantly disadvantage both oil and natural gas production in Alberta compared to Texas.