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“Please help me by delivering the business stability I need to attract capital, employ Albertans, and drill new wells which also deliver significant royalty and corporate tax revenue to the Province.”

One can hope for the best, but early indications are quite worrisome for the sector.

In particular, Notley has appointed advisers from outside the province, some of whom have in the past expressed displeasure with Alberta’s oil and gas development, especially oil sands.

More so, she had a great opportunity to reflect the importance of the energy portfolio by perhaps taking on the position herself or appointing someone of equal stature within her party such as Brian Mason. Instead, she chose to appoint the relatively unknown Marg McCuaig-Boyd.

This leaves the sector still facing serious jurisdictional risk, at least until we get better clarification on what the royalty review will look like as well as other policies such as a potential carbon tax.

In the interim, investors will allocate capital elsewhere, which they have already begun to do.

Specifically, we calculate that Alberta-based producers since the election have sold off on average just over seven per cent, with some down as much as 17 per cent. Meanwhile, non-Alberta producers are flat, WTI oil (Canadian dollar adjusted) is up 1.2% and U.S. producers (again adjusted for the loonie) are only down 2.4%.

As an investor in the sector, it is rather unfortunate that we have had to join others by proactively reallocating capital elsewhere.

In the end, it may not be as disastrous as some are calling, but until there is better visibility, the risks are too high and the return potential is better elsewhere.

Martin Pelletier, CFA, is a portfolio manager at Calgary-based TriVest Wealth Counsel Ltd.

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