NDP kicking can down road with royalty review

At first glance, the decision today by the Alberta NDP to give industry 16 months to plan accordingly before royalty rates are subject to change comes across as a good way to assuage industry concern and uncertainty.

However, does this decision not ultimately just mean kicking the proverbial can down the road? Would it not have been better policy to decisively make a decision on royalties? Are Albertans not impatient enough with gaining renewed trust in the royalty framework (the very reason why the NDP is conducting the review in the first place)?

Today’s announcement will only prolong increased uncertainty for when December 31, 2016 comes around.

One must wonder whether this logic is not already running through the minds of leading energy executives. If anything, this will only make waters murkier for when it comes time for them to make important investment decisions based on jurisdictional attractiveness.