The Stelmach government has announced new measures to help kick start the oil and gas industry.

Speaking today in Edmonton, Energy Minister Mel Knight announced two drilling incentive programs would be extended for another year.

The Drilling Royalty Credit and the new Well Incentive Program will now run until 2011.

The government also announced a competiveness review of the industry to be done in consultation with industry. The review is to be completed by the Fall.

There has been a mixed reaction in the oil patch. To some this is simply too little too late. Others believe that it's never too late, and today's announcement shows the Stelmach government is listening.

Beaver Drilling, a small family business that used to operate solely out of Alberta, says half its rigs are now in British Columbia. They say they have to go where the money goes.

They say today's announcement will do nothing to get more rigs back in Alberta. It says people have lost faith in the system here and investors are looking elsewhere.

Beaver Drilling's Brian Krausert says "they made the announcement but our phones aren't ringing off the wall. They may save some jobs and they may be some increased investment but this industry isn't a light switch that you can switch on or off on a dime."

Others disagree. The Canadian Association of Petroleum Producers believes today's announcement will help stimulate short-term drilling activity.

It says that will buy time until the competiveness review can look at long term issues to stimulate investment.

We may know whether the measures are working shortly. The drilling industry body is monitoring drilling activity and is due to release its latest report in just a few weeks time.