Billion dollars in investments will be made into exploration and production in Alberta and Canada, with the federal government announcing the funds in an announcement today.
The $50 billion investment announced today by the federal and provincial governments will support a variety of sectors in Alberta’s and Canada’s oil and petroleum sectors.
The investments include $30 billion in infrastructure projects and $1 billion in energy infrastructure.
The federal government also committed $2 billion for Alberta’s energy infrastructure fund, which is expected to be the largest in Canada.
Energy companies are also expected to receive a substantial amount of tax revenue, the announcement said.
Alberta has experienced a sharp drop in the price of oil since January.
Alberta’s oil production has fallen by over 20 per cent since June, when the price hit $30 per barrel.
Oil prices have rebounded to $33 per barrel in November.
Investors and analysts are expecting a return to growth in Alberta oil and other energy industries as oil prices rebound.
“Alberta will be the third-largest producer of oil and the third largest producer of natural gas, with significant potential for both of these resources in the medium term,” said Alberta Premier Rachel Notley in the announcement.
Last year, Notley said the province had invested more than $100 billion in oil, gas and mining, with nearly $90 billion invested in infrastructure.
New Brunswick, which has more than 1,100 oil wells, will also see investment in exploration and development in 2018, according to the announcement from the federal governments.
New Brunswick is expected in 2020 to have about 6,500 oil and 6,000 natural gas wells, the provincial government said.
Alberta and New Brunswick are expected to contribute $5 billion to the $25 billion Canada-U.S. Oil Sands project.
As the country transitions to a low-carbon economy, the governments of Canada and the United States are announcing additional investments to help support the development of the oil and energy industries.
The announcement by the two governments comes as both governments look to the future of Canada’s energy industry after the Alberta tar sands project was cancelled in the early 2000s.
A number of projects are also in the pipeline in Alberta, including $1.2 billion in gas-fired power plants and $2.4 billion in liquefied natural gas plants.
Oil and gas drilling in the United Kingdom, which saw a record 4.3 million barrels of oil equivalent produced in 2017, will see a significant investment in 2018 with projects to begin drilling in 2018.
In addition to Canada, the United Arab Emirates will also begin drilling projects in 2018 in the Gulf of Mexico.
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