EDMONTON - A report says Alberta would create jobs and take in $600 million in annual revenues if more oil and natural gas were processed in the province instead of shipping it to other jurisdictions.

The report by a University of Calgary economist was commissioned by a group of municipalities and energy companies in the Edmonton region known as Alberta's Industrial Heartland Association.

The companies include Agrium (TSX:AGU), Enhance Energy, Nova Chemicals (TSX:NCX) and Williams Energy.

The association says it plans to lobby the government for new and expanded policies that would allow for more value-added processing of oilsands bitumen, natural gas liquids and raw natural gas.

It says it supports Alberta's efforts to get better pipeline access, but suggests more local processing would make the province less reliant on international markets.

The report estimates such a policy would create up to 18,000 new jobs that would pump $1.8 billion per year in salaries into the economy.