Three main trends are apparent in the oil and gas industry in 2011. First, there remains an ambivalent attitude in some quarters towards foreign investment in the sector. The Federal Government wants to encourage companies to continue to access foreign capital while also balancing concerns about the potential impact that such investments may have on national security. Secondly, more favourable royalty rates for conventional oil and gas have come into effect in Alberta in response to the growing importance and competitiveness of Saskatchewan and British Columbia in the sector. Finally, there is increasing concern about the impact of oil and gas production on the environment. Reprinted with permission from The 2011 Lexpert®/American Lawyer Guide to the Leading 500 Lawyers in Canada.