THE BIG 3

The Panel is going to examine three major streams of the energy business that fall under Alberta’s royalty framework: crude oil and liquids; natural gas; and oil sands.

Each of these streams involves distinct geology, prices, and market considerations. And each has a different royalty structure, which may need to change to meet our goals and expectations.

We’ll be sharing what we learn about these streams. As the conversation evolves, you’ll be able to click on the icons to dig deeper and explore each of these streams. We’ll be asking for your thoughts about them, and we welcome any wisdom you’re willing to share.

Return to see what we put here

Crude oil & liquids

Natural Gas

Oil Sands

Royalties the government collects

Last year (2014-2015), the Government of Alberta collected $9 billion in Non-Renewable Resource Revenues on behalf of Albertans. Of this, $8.3 billion came from royalties on oil, natural gas, and oil sands (bitumen).

The government also collected $476 million from sales of mineral leases (also called “land sales”). On average, 24 times each year the Government of Alberta holds a competitive bid process, in which companies compete for the right to explore for and develop oil, natural gas, and oil sands resources that are owned by Alberta. The land sales process is one important way that Alberta gets value for its resources.

The rest of the non-renewable resource revenues collected by the government in 2014-2015 came from coal royalties and rental fees.

To give you an idea how this fits into Alberta’s budget, in 2014-2015 royalties on oil, natural gas and oil sands (bitumen) represented 19% of Alberta’s total operational revenues ($44.2 billion).

Generally speaking, under the current royalty framework, the amount of royalties collected each year depends on how much oil, natural gas, and oil sands (bitumen) is being produced. It also depends on the prices that energy companies are receiving for these products. These prices fluctuate every day, according to markets.

Resource prices and production levels change over time. As a result, the total amount of royalties collected by the government changes each year. The amounts of royalties collected from each type of resource also change each year.

In recent times, the largest proportion of royalties has come from oil sands (bitumen), and the smallest share has come from natural gas. This is quite different from 10 years ago. In 2004-2005, the largest share of royalties collected by the government came from natural gas, while the smallest share came from oil sands (bitumen).

You can review the amounts of royalties collected by government each year in Alberta Energy’s Annual Reports .

Sources: Alberta Energy 2014-2015 Annual Report; Government of Alberta 2014-2015 Annual Report.

All Facts Next Fact »

The Panel

The Conversation

We’re inviting you to have several conversations with us, over several stages. Each stage is going to feed into the next. We’re going to ask you questions, and consider what you say. On a regular and frequent basis, we’re going to report back and reflect what you’ve told us, and ask you more questions based on that.

The Phases

First thoughts
PRINCIPLES of a Good Framework
WHAT DOES SUCCESS LOOK LIKE?

Visit often, because the questions will change. Encourage your friends, family members and co-workers to visit and participate as well. We want to have as much dialogue with as many Albertans as we can.

Invite other Albertans!