A sweeping trade agreement between Alberta and British Columbia will reap benefits for oil and gas companies when it comes into effect early next year.

No less than four B.C. cabinet ministers were in Calgary Monday to promote the province's oil and gas service sector and pump up the trade, investment and labour mobility agreement signed with Alberta in April.

Richard Neufeld, the province's energy minister, said even more cabinet ministers would have made the trip given the role of oil and gas in boosting the province's finances.

"We recognize the importance of the oil and gas sector in B.C. to help meet our goal of eliminating deficits and reducing debt," Neufeld said while attending the Canadian Association of Petroleum Producers annual investment symposium.

Since 2001, energy has quietly surpassed forestry as the biggest contributor to B.C.'s economy, but Neufeld said many people in Lotus Land still don't realize their bread is being buttered in Wild Rose country.

For fiscal 2006, the province is hoping to add some $2.8 billion in oil and gas revenues to its coffers, almost three times the $1.08 billion it hopes to gain from forestry.

"If you go to downtown Vancouver, they don't know that. People are becoming more aware of it, but it's different than Edmonton or Calgary. Ask them about forestry and it's a different story."

Under the trade pact, Alberta and B.C. will create the second-largest economic region in the country next to Ontario when it comes into effect in 2007.

Businesses registered in one province will automatically be listed in the other, while professional and vocational certifications will be transferable to either jurisdiction.

Likewise, both provinces have committed to harmonizing permitting agencies with the aim of creating a "single-window" regulator.

Colin Hansen, B.C.'s economic development minister, said the trade pact could add $4.8 billion to his province's gross domestic product and create 72,000 new jobs.

With some 7.5 million people, the combined GDP of both provinces will be 30 per cent greater than Quebec's, he added.

"We'd like to see it become the basis of a national agreement," he said.

The changes will benefit Calgary oil companies operating in northeast B.C., but it will also benefit smaller B.C.-based service companies that depend on business from Alberta, said David Pryce, who manages western Canadian operations for the Canadian Association of Petroleum Producers.

Pryce said B.C. previously resorted to punitive regulations and fees to protect its oil and gas sector from what it saw as encroachment from Alberta.

The TILMA agreement bridges the gap by fostering a more co-operative attitude among both parties.

"There was a concern a lot of service supplies and people were coming out of Alberta," he explained.

"There were restrictions or threats of restrictions . . . this is of real value to everybody."

Kevin Kelso, general manager of Fort Nelson-based Streeper Contracting, said common transportation regulations would make it easier to move equipment across the border.

Streeper specializes in hauling drilling rigs and is subject to various load and weight restrictions, which can make for a lot of red tape.

"They're working at making it easier to cross the border, which will be good for us," he said.

Streeper currently employs about 55 people, and the ability to draw workers from both provinces will be a plus, especially in the busier winter months.

Kelso says business has been booming in B.C. and he hopes it stays that way.

"You can really see it in the town. Everybody's investing and growing with the oilpatch."

spolczer@theherald.canwest.com

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B.C. oil and gas facts

(2004)

- Capital spending: $3.9 billion

- Payments to province: $2 billion

- Industry revenues: $7.1 billion Production

- Oil and equivalents: 48,000 barrels per day

- Natural gas: 2.6 billion cubic feet per day

Reserves

(as of Dec. 31, 2004)

- Conventional oil: 139 million barrels

- Natural gas: 10.3 trillion cubic feet

Source: CAPP