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Moments after being named among the top petroleum producers in the country, a pair of oilpatch CEOs were asked about the fallout from the new federal budget.

It didn’t take long for Darren Gee of Peyto Exploration and Development, or Tamarack Valley Energy’s Brian Schmidt, to set their sights on tax changes that will affect drilling and exploration in their sector.

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The moves won’t impact the companies immediately. But the executives worry about the long-term implications of Ottawa’s decision to slow down deduction rates allowed on discovery wells.

They believe the budget will make conventional oil and gas producers less likely to take on additional risky exploration spending, particularly in a period of turbulent commodity prices.

They also fear it will make the Canadian oilpatch less competitive to attract global investment dollars.

“The industry is so focused right now on trying to make money and risk is off the table at this point,” said Gee, whose company was named top intermediate/senior producer last week by the Explorers and Producers Association of Canada (EPAC).