The oilsands is an industry marked by mega-projects. The federal government has just rolled out a new “productivity mega deduction.”

And Alberta and the energy sector hope Ottawa’s latest move will unleash an investment boom in the oilsands, one that rivals the surge of spending and production that flowed after similar changes were made in the 1990s and early 2000s.

“All of the stars are aligning,” said Heather Exner-Pirot, director of natural resources, energy and environment at the Macdonald-Laurier Institute.

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“The time is right for Canada to push the gas pedal on the oilsands and on its potential.”

As part of his Canada Investment Summit on Tuesday, Prime Minister Mark Carney announced a key federal incentive, one that will allow many businesses to deduct the costs of new investments in capital assets immediately.

The changes will expand the amount of capital assets covered by the deduction from 15 per cent to more than 65 per cent. It will include oil and gas pipelines, software, R&D, rail tracks, bridges, and roads.

“Capital assets related to a new pipeline, including capital equipment used in oil production, are newly eligible . . . and position us to expand our energy superpower status,” John Fragos, press secretary to federal Finance Minister François-Philippe Champagne, said in a statement.

For industry leaders, this is a significant measure with the potential to help trigger more production.

It is also a welcome step for the provincial government, which wants to see a new West Coast pipeline built, and oilsands companies to make substantial investments to increase........

© Calgary Herald