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Alberta

Alberta takes decisive action to get more oil to market

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3 minute read

February 19, 2019

A historic rail deal between Canadian Pacific Railway, Canadian National Railway and the Government of Alberta means all Albertans will get a better price for our energy resources.

Alberta takes decisive action to get more oil to market

Premier Notley announces Alberta’s new investment in crude-by-rail export capacity.

This strategic investment by the Alberta government will see an estimated 4,400 rail cars move up to 120,000 barrels per day by 2020. Albertans can look forward to seeing rail cars transport Alberta oil as early as July 2019.

This is another part of our Made-in-Alberta energy strategy – building on Alberta’s energy strengths to get more value from our resources and create more jobs.

“Each and every Albertan owns our energy resources and deserves to get top dollar for them. We are taking decisive actions to protect people and to protect our natural inheritance. When challenges are placed in front of us, we overcome them. I’m going to keep working every day to fight for a better future for every person who calls Alberta home.”

Premier Rachel Notley

In 2018, Premier Notley laid out short, medium and long-term plans to get top dollar for Alberta’s energy resources. In the short term, the province temporarily curtailed oil production to address the storage glut. Over the long-term, the Premier continues to fight for pipelines and today’s rail deal means Alberta can expand take-away capacity over the medium term.

This investment in increased rail capacity totals about $3.7 billion. With the anticipated commercial revenue and increased royalty and tax revenues, the province anticipates generating approximately $5.9 billion over the next three years.

The Government of Alberta will purchase crude oil from producers and load it onto the rail cars at onloading facilities across the province. The crude oil will then be shipped to market. These actions will help industry including small producers who may not have the ability to take this action on their own.

In developing its Crude-by-Rail strategy, the Alberta government has also taken care to ensure that additional rail cars carrying oil will have no impact on the shipments of agricultural products.

Quick facts

  • $3.7B investment provides Albertans with $5.9B in revenues over three years.
  • Approximately US$4 per barrel reduction projected in differential between West Texas Intermediate and Western Canadian Select from early 2020 to late 2021.
  • Additional 120,000 barrels a day of rail capacity is anticipated by 2020.
  • 4,400 rail cars will be used to transport oil. The first complement of rail cars are expected to start transporting Alberta oil in July 2019.
  • Rail cars include DOT-117J and DOT-117R models, which meet all current safety standards outlined by Transport Canada.

Agriculture

Lacombe meat processor scores $1.2 million dollar provincial tax credit to help expansion

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Alberta’s government continues to attract investment and grow the provincial economy.

The province’s inviting and tax-friendly business environment, and abundant agricultural resources, make it one of North America’s best places to do business. In addition, the Agri-Processing Investment Tax Credit helps attract investment that will further diversify Alberta’s agriculture industry.

Beretta Farms is the most recent company to qualify for the tax credit by expanding its existing facility with the potential to significantly increase production capacity. It invested more than $10.9 million in the project that is expected to increase the plant’s processing capacity from 29,583 to 44,688 head of cattle per year. Eleven new employees were hired after the expansion and the company plans to hire ten more. Through the Agri-Processing Investment Tax Credit, Alberta’s government has issued Beretta Farms a tax credit of $1,228,735.

“The Agri-Processing Investment Tax Credit is building on Alberta’s existing competitive advantages for agri-food companies and the primary producers that supply them. This facility expansion will allow Beretta Farms to increase production capacity, which means more Alberta beef across the country, and around the world.”

RJ Sigurdson, Minister of Agriculture and Irrigation

“This expansion by Beretta Farms is great news for Lacombe and central Alberta. It not only supports local job creation and economic growth but also strengthens Alberta’s global reputation for producing high-quality meat products. I’m proud to see our government supporting agricultural innovation and investment right here in our community.”

Jennifer Johnson, MLA for Lacombe-Ponoka

The tax credit provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bio processors that add value to commodities like grains or meat or turn agricultural byproducts into new consumer or industrial goods.

Beretta Farms’ facility in Lacombe is a federally registered, European Union-approved harvesting and meat processing facility specializing in the slaughter, processing, packaging and distribution of Canadian and United States cattle and bison meat products to 87 countries worldwide.

“Our recent plant expansion project at our facility in Lacombe has allowed us to increase our processing capacities and add more job opportunities in the central Alberta area. With the support and recognition from the Government of Alberta’s tax credit program, we feel we are in a better position to continue our success and have the confidence to grow our meat brands into the future.”

Thomas Beretta, plant manager, Beretta Farms

Alberta’s agri-processing sector is the second-largest manufacturing industry in the province and meat processing plays an important role in the sector, generating millions in annual economic impact and creating thousands of jobs. Alberta continues to be an attractive place for agricultural investment due to its agricultural resources, one of the lowest tax rates in North America, a business-friendly environment and a robust transportation network to connect with international markets.

Quick facts

  • Since 2023, there are 16 applicants to the Agri-Processing Investment Tax Credit for projects worth about $1.6 billion total in new investment in Alberta’s agri-processing sector.
  • To date, 13 projects have received conditional approval under the program.
    • Each applicant must submit progress reports, then apply for a tax credit certificate when the project is complete.
  • Beretta Farms has expanded the Lacombe facility by 10,000 square feet to include new warehousing, cooler space and an office building.
    • This project has the potential to increase production capacity by 50 per cent, thereby facilitating entry into more European markets.

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Alberta

Alberta Next: Alberta Pension Plan

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From Premier Danielle Smith and Alberta.ca/Next

Let’s talk about an Alberta Pension Plan for a minute.

With our young Alberta workforce paying billions more into the CPP each year than our seniors get back in benefits, it’s time to ask whether we stay with the status quo or create our own Alberta Pension Plan that would guarantee as good or better benefits for seniors and lower premiums for workers.

I want to hear your perspective on this idea and please check out the video. Get the facts. Join the conversation.

Visit Alberta.ca/next

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