Alberta Premier Welcomes Federal EOR Tax Credit Eligibility, Opening Door to New Injection Work
According to BOE Report, Alberta Premier Danielle Smith issued a statement April 29 welcoming the federal government’s inclusion of Enhanced Oil Recovery (EOR) as an eligible use under Investment Tax Credits in its spring Economic Update.
Federal Recognition Follows Alberta’s Advocacy
Smith credited the 2025 Canada-Alberta Energy Agreement as the foundation for this outcome, noting that her government “advocated strongly for the inclusion of EOR in carbon capture, utilization and storage (CCUS) supports” as part of that deal. In her statement, Smith called EOR “a more cost-effective and accessible pathway for companies to adopt CCUS technology,” adding that it improves recovery rates and encourages further investment in Alberta’s energy sector. The premier framed the measure as supporting dual goals: increasing oil production while reducing emissions.
No specific dollar figures or project timelines were included in the statement, but the policy shift gives operators across Alberta a clearer financial incentive to advance EOR projects, potentially resolving cost and eligibility questions that had complicated investment decisions under previous CCUS frameworks.
What It Means for Subcontractors
- EOR operations typically involve injection well drilling, workover activity, and fluid handling infrastructure. Field service companies with those capabilities should monitor contract activity as operators respond to the improved tax credit environment.
- Companies specializing in CO2, water, or polymer injection services may be well-positioned if CCUS-linked EOR projects accelerate to take advantage of the newly confirmed federal incentives.
- Subcontractors active in Alberta’s mature producing regions should begin conversations with operator clients about project timelines, since tax credit eligibility can be a factor in operators’ final investment decisions.
- Wellsite service providers should review equipment capacity and crew availability in the event that EOR project activity increases and tightens labor and equipment supply across the province.
