How important is oil and gas to B.C., both economically and politically?

It is a very important natural resource sector for the province, contributing over half of our provincial natural resource revenue. We need to make sure that we have a competitive climate for the investment and growth of the industry. We see tremendous opportunities for the province, particularly in the area of unconventional shale exploration in the northeast sector, and we expect it to become a very significant component of our provincial economy and government revenues.

Is the perception that B.C. is not natural resource-friendly still prominent today?

That wouldn't be a very fair portrayal of the situation today. We've worked very closely in partnership with the industry to ensure that there is a competitive regulatory environment, royalty regime, and tax policy that help spur investment. We have done this without compromising environmental standards and sustainability. We have brought in a new oil and gas activities act, which regulates the industry and is recognized as a balanced approach to regulation.

We also have a clean energy act, which sets the overall framework for the development of our energy plan. I think it's fair to say now that the industry recognizes the importance of the social license and environmental standards that it has to maintain. Last year we had the fourth-highest revenues for land sales, and we know that companies are here for the long term.

Do you think the people of B.C. understand the significance of oil and gas to the province?

I think they do. The investment and potential in the sector is recognized. People see how important it is to the province, as well as the work that we're doing on the environmental side of it. We are also doing a lot of work with the First Nations in terms of building those economies and creating jobs. There are significant projects like the Kitimat LNG plant where First Nations are directly involved, and there's community support for it because they recognize the long-term benefit.

You represent the province to E&P companies. How do they react to the idea of investing in B.C.?

The outside investment community sees the potential here. Under the current market with low gas prices it's challenging, because we are at the end of the pipeline, so to speak, in terms of distance from markets, yet we're continuing to see investment despite that. We're also looking at new markets like the Asia-Pacific as an important part of the future of the industry, especially if we work together with Alberta and Saskatchewan. We're the gateway to the Asia-Pacific with infrastructure and ports, so it's an important part of our future.

As a major gas producer, does the struggling gas market present a challenge for the province?

I think it presents a challenge to the province, as well as the companies that are investing here. But if you look at the level of opportunity and investment that they've made in land sales, you can see that the long-term outlook for B.C. is positive so long as we keep a balanced approach to regulation and we keep a competitive environment.

We're expecting in 2011 to see the same number of new wells drilled as last year and we know there will be new technology to drive down costs so companies can stay competitive.

What is your final message about investing in B.C.?

The province remains committed to ensuring that we have a regulatory and competitive environment that will continue to provide opportunities for investment and growth in the industry. We are continuing to work with companies so that we can build on the tremendous opportunities that exist in B.C., both in partnership with industry and in partnership with our fellow provinces. M

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