BOOST FROM TAX CUT IN CANADA

US Oil Giants Exxon, Chevron Get Boost From Tax Cut In Canada.Source: Bloomberg

• Oil-Rich Alberta using tax benefits to draw Global Investment
• Tax Rate could reach 8% in 2022, lower than 44 U.S. States.
• A corporate Tax Rate cut in Alberta boosted Exxon's second-quarter profit by almost $500 million. Chevron noted a $180 million non-cash tax benefit from the measure in its report.
• Alberta Premier Jason Kenney has made the tax cut a centerpiece of his effort to bring jobs and global investment back to the province, which was hit hard by the 2014 crash in global oil prices and pipeline delays.
• The province has seen international companies including Royal Dutch Shell Plc, ConocoPhillips and Total SA sell their local operations.
• The tax-supported by Kenney trimmed the corporate rate to 11% from 12%.
• It's already the lowest in Canada and will continue to decline in the coming years, reaching 8% in 2022. At that point, it will be lower than in 44 U.S. States.
• Rich Kruger, CEO of Imperial Oil Ltd., the Exxon-owned Canadian Oil-Sands company that benefited from the tax cut lauded other moves by Kenney's government, including changes to the province's carbon tax and reduction in regulations as helping to improve the environment as well. Lack of pipeline space is an issue to deal with.
• Suncor Energy Inc. and Cenovus Energy Inc. also reported substantial Q2 benefits from the measure.