Earlier last week, Canadian fossil fuel giant Encana decided to move its corporate headquarters to the United States. Premier Jason Kenney was quick to lay blame on the federal government. Encana’s CEO dismissed the notion that the move was a political decision. Interestingly, what has been overlooked is the fact that Encana decided to make … Continued
Earlier last week, Canadian fossil fuel giant Encana decided to move its corporate headquarters to the United States. Premier Jason Kenney was quick to lay blame on the federal government. Encana’s CEO dismissed the notionthat the move was a political decision.
Interestingly, what has been overlooked is the fact that Encana decided to make the transition despite incentives offered by Kenney’s own government.
Earlier this year, Alberta’s United Conservative government rolled out a tax cut for large corporations. The “Job Creation Tax Cut” was meant to appease companies that increasingly see Albertan oil and gas as a bad investment.
According to Encana’s internal documents, the decrease to the corporate tax resulted in them pocketing a cool $55 million. Their departure from Alberta illustrates why government policy alone does not dictate corporate decision-making. Indeed, Encana’s CEO himself revealed that the move was made in order to tap into greener pastures in the United States.
Kenney had presented himself as the candidate that would return Alberta to an era of prosperity. His corporate tax cut, he promised, would lure investment and retain disgruntled corporations. So far this has not panned out.
The overwrought grief that greeted Encana Corporation’s decision to move its Calgary head office to the United States shows Canada and Alberta at a crossroads, facing an increasingly obvious choice between yesterday’s energy choices and tomorrow’s.
At stake are the country’s ability to bring its disgraceful greenhouse gas emissions under control and take its place as a global climate leader, and the potential for every province and territory—but particularly Alberta and Saskatchewan—to tap into the massive opportunities in a carbon-free economy.
The other question, less evident in this week’s coverage of the Encana decision but more clear in wider industry trends, is how much longer fossil companies will be able to offer any economic benefit to anyone, whether they’re “domiciled” in Calgary, the United States, or anywhere else.
Weyerhaeuser (WY:NYS) and Encana (ECA:TSE) Upgraded
Weyerhaeuser (WY:NYS) and Encana (ECA:TSE) Upgraded
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Encana, Apache's Efforts in Permian, Eagle Ford Help to Offset Losses from Weaker Assets, an Industrial Info News Alert - Markets Insider
SUGAR LAND, Texas, Jan. 10, 2018 /PRNewswire/ -- Researched by Industrial Info Resources (Sugar Land, Texas)--Encana Corporation (Calgary, Alberta) and Apache Corporation (Houston, Texas) are enjoying solid results from their investments in Texas ...
Encana, Apache's Efforts in Permian, Eagle Ford Help to Offset Losses from Weaker Assets, an Industrial Info News Alert - Markets Insider
SUGAR LAND, Texas, Jan. 10, 2018 /PRNewswire/ -- Researched by Industrial Info Resources (Sugar Land, Texas)--Encana Corporation (Calgary, Alberta) and Apache Corporation (Houston, Texas) are enjoying solid results from their investments in Texas ...
Encana, Apache's Efforts in Permian, Eagle Ford Help to Offset Losses from Weaker Assets, an Industrial Info News Alert - Markets Insider
SUGAR LAND, Texas, Jan. 10, 2018 /PRNewswire/ -- Researched by Industrial Info Resources (Sugar Land, Texas)--Encana Corporation (Calgary, Alberta) and Apache Corporation (Houston, Texas) are enjoying solid results from their investments in Texas ...