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Alberta Implementing New Oil Royalty Payment System to Encourage Production
The program offers a 2% royalty rate for the first five years and could create tens of thousands of jobs, the province said.
- On Friday, Alberta Premier Danielle Smith announced the Oil Sands Growth Program, offering companies a guaranteed 10-year royalty schedule for new or expanded oilsands projects to incentivize industry development.
- Designed to lower upfront financial barriers, the program aims to double oilsands production to 8 million barrels per day by 2035 and fill proposed infrastructure like the Pacific Link pipeline.
- Brian Jean, Alberta's energy and minerals minister, said projects require "significant upfront capital and long-term certainty." Eligible projects meeting a 5,000 barrel per day threshold pay a 2 per cent royalty rate.
- Suncor Energy Inc. CEO Rich Kruger called the initiative a positive step for fiscal competitiveness, while the province estimates the program could generate more than $1.3 trillion in cumulative revenue by 2060.
- Projects must still meet environmental and Indigenous consultation requirements to qualify. After the 10-year period expires, producers return to the regular royalty regime, with the province planning a program review in December 2029.
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21 Articles
Alberta announces royalty program as part of plan to double oilsands production
The province says the OGP is designed to lower upfront financial barriers to new projects and expansions, particularly as proponents of the Pacific Link pipeline look for companies to fill upcoming capacity.
·Ottawa, Canada
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The Toronto Star+10 Reposted by 10 other sources
Alberta implementing new oil royalty payment system to encourage production
CALGARY - Alberta's government is introducing a new royalty payment program that it says is aimed at incentivizing development in the oil industry.
·Toronto, Canada
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Alberta is introducing a new royalty regime to encourage oil companies to invest in oil sands.
·Montreal, Canada
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Total News Sources21
Leaning Left7Leaning Right1Center5Last UpdatedBias Distribution54% Left
Bias Distribution
- 54% of the sources lean Left
54% Left
L 54%
C 38%
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