Calgary is the most expensive city in Canada to do business, according to a new study released Wednesday.

The city bottomed out at number 17 of 17 on the KPMG Competitive Alternatives 2016 report when evaluated on factors such as the cost of labour, transportation and facilities.

Court Ellingson, vice president with Calgary Economic Development, said the result was unsurprising, especially in light of how oil and gas wages have ballooned over the past decade.

KPMG's 2016 rankings and cost indices for featured Canadian cities. (KPMG)

"We know over the last 10 years, the oil and gas sector, wages have increased at more than twice the rate of the national average," he said.

But Ellingson pointed to other non-cost factors that play a role in wooing companies to different cities, including quality of life and geography.

"We know that we have lots of other things to fall back on to show that we're a very competitive city," he said.

"The fact that we have a very highly educated workforce, a young work force, a diverse workforce, really works in our favour when it comes to attracting companies to Calgary."

Ellingson added that one way Calgary can increase its attractiveness is by diversifying its economy and "showing that this city is really a lot more than oil and gas."