The first month of 2017 is already behind us and it appears an oil recovery is truly underway in Alberta. The province has reported 247 active rigs in Alberta as of mid-January. That compares to 165 at the same time in 2016. Alberta’s NDP government wants some of the credit for oil’s upswing. This week the province issued a news release attributing the 2017 turnaround to Alberta’s new Royalty Framework. The image below ties the recent increase in drilling to the Royalty Framework introduced by the NDP government last year.

Todayville asked the Red Deer & District Chamber of Commerce if they would tie this oil recovery to the new Royalty Framework. Interim CEO Rick More says several factors set the table for the upswing in drilling.
While the root causes for this recovery can be debated, the resulting optimism is much easier to agree on. It’s estimated every active drilling rig creates 135 direct and indirect jobs.
This fall the Province will announce recommendations regarding value-added oil development opportunities for Alberta. The government is examining potential strategies for partial upgrading, refining, as well as petrochemicals and chemical manufacturing.
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