Feb. 6 (Bloomberg) -- Alberta Premier Ed Stelmach promised help for companies in the province’s oil sector that are struggling after oil prices slumped and credit markets tightened, the Globe and Mail reported.

The province has begun consulting with banks to encourage them to provide access to capital for smaller energy companies, Stelmach said in a speech to the Calgary Chamber of Commerce, according to the Globe. He didn’t elaborate on the plan.

Energy Minister Mel Knight said the province won’t change a royalty regime, the Globe reported. Knight said he’s working on developing a “tax credit incentive of some sort to deal with the issues specific to the junior, mid-cap players,” the Globe said.

Economists expect Alberta’s royalty revenue will decline by C$5 billion ($3.99 billion) this year on slumping oil prices, the Globe said.

To contact the reporter on this story: Joe Schneider in Toronto at jschneider5@bloomberg.net.

Last Updated: February 6, 2009 07:54 EST