Canadian Natural Resources says Alberta royalty hike will cost jobs

Canadian Natural Resources Ltd. said Tuesday that Alberta's proposed energy royalty hike could see the company cut thousands of jobs in the province.

The Calgary-based firm warned that raising the royalty by the proposed 20 per cent would cause it to reduce its activity, which it estimated would result in 3,900 fewer direct jobs and 16,000 fewer indirect jobs.

The company believes the proposals pose the risk of turning the oil and natural gas industry in Alberta into a shrinking or "blowdown" model.

The company called on the provincial government to "determine a path forward that balances the need for Albertans to retain a fair share of revenues while maintaining a viable oil and natural gas industry that can continue to contribute to a prosperous Alberta for generations to come."

Canadian Natural is just the latest in a string of companies that have issued public warnings of the possible fallout if the province goes ahead with the recommended royalty rate increase. EnCana and Talisman have said they would pull millions of dollar in annual spending from the province.