Canada: The new leftist leader of Canada`s oil-rich Alberta province sought to reassure energy investors Wednesday, saying she would work with industry to plan cuts to greenhouse gas emissions and on taxation.
Investors reacted to the New Democratic Party`s historic win Tuesday in Alberta by dumping Canadian oil and gas stocks, fearing the NDP would raise fossil fuel royalties in the province to offset an estimated Can$7 billion (US$5.8 billion) shortfall in government revenues this year tied to a plunge in oil prices.
Premier-elect Rachel Notley`s NDP unseated the Alberta Tories in balloting, bringing an end to a 44-year political dynasty.
The Toronto Stock Exchange fell more than 200 points in morning trading, led by Enbridge, Suncor Energy and Canadian Natural Resources -- which were down three to four percent.
"I`m going to be reaching out to industry and they can count on us to work collaboratively with them and, you know, I am hopeful that over the course of the next two weeks they will come to realize that things are going to be just A-okay here in Alberta," Notley said at a nationally-televised press conference.
Alberta has been hard hit by the recent collapse in oil prices after a decade-long boom, with the province`s oil sector shedding 20,000 jobs since September.
The NDP has promised to increase taxes on top earners, boost education and health funding, and review Alberta`s fossil fuel royalties regime.
Notley also said during the campaign that the province must stop lobbying for the construction of pipelines to the US Gulf Coast and British Columbia ports for shipping crude from landlocked Alberta overseas.
Regulatory approvals for the large-scale Keystone XL and Northern Gateway pipelines are both stalled amid strong opposition from environmental activists.
Notley said on her first day on the job as premier that Alberta also "needs to do some work on the climate change file" and "to have some conversations about the growth of our energy industry."
Critics blame massive growth in the Alberta oil sands for a spike in Canadian CO2 emissions that contributed to Canada`s failure to meet its international obligations to curb warming.
Canada pledged to reduce emissions by 17 percent below their 2005 levels by 2020 but Ottawa said it would miss the mark.
Notley said managing oil sands growth and emissions are both "critical" issues.
