Title | Royalty reform solutions: Options for delivering a fair share of oil sands revenues to Albertans and resource developers |
Publication Type | Report |
Year of Publication | 2007 |
Authors | Taylor, A. |
Issue | 5 |
Pagination | 23 pages |
Date Published | 05/2007 |
Publisher | Pembina Institute |
Place Published | Drayton Valley, AB |
Publication Language | eng |
Keywords | economics, legislation, policy |
Abstract | The Alberta government established the current oil sands royalty regime in 1997 with the aim of accelerating oil sands developments beyond 1 million barrels per day by the year 2020.2 The terms were set to explicitly favour investors and support a fledgling industry. Ten years later, however, economic conditions have change significantly: oil sands extraction and upgrading technologies have matured, and current and projected oil prices have increased substantially. The price of bitumen (the raw product from oil sands) has increased 256%. Not surprisingly, capital investments in oils sands projects are soaring in response. Since 1997, capital investments have increased more than 400% and oil production has increased 130%. In fact, the current royalty regime has already exceeded its own objectives for spurring development: production surpassed 1 million barrels per day in 2004, 16 years ahead of schedule. Oil sands production is now forecast to reach 3.5 million barrels per day by 2015 and 4.0 million barrels per day by 2020, accounting for more than 80% of Canadian oil production.4 |
Notes | Oil Sands Issue Paper No. 5. |
URL | http://pubs.pembina.org/reports/Royalty_Reform_Report_May07.pdf |
Locational Keywords | Alberta oil sands |
Active Link | |
Group | OSEMB |
Citation Key | 53594 |