2007 Royalty Review Panel and Competitiveness study archive page
Premier Ed Stelmach initiated a public review of the province’s royalty and tax regime to ensure Albertans are receiving a fair share from energy development through royalties, taxes and fees.
On February 16, 2007, Finance Minister Lyle Oberg announced the appointment of a six-member panel of experts to complete the review in a thorough and impartial manner.
The Royalty Review Panel was independent of government and consisted of the following panel members;
Bill Hunter (chairman), Judith Dwarkin, André Plourde, Kenneth J. McKenzie, Sam Spanglet and Evan Chrapko.
In March 2008 Building Confidence: Improving Accountability and Transparency in Alberta’s Royalty System (Valentine report) was released with royalty recommendations to incorporate following the review. One of the recommendations was to post historical royalty data.
In the winter of 2013, the 2007 Royalty Review Panel site was closed and this page was produced to capture elements of the panel. In August of 2015 the www.albertaroyaltyreview.ca address was reused for the 2015 Alberta royalty review. The 2007 report was updated to point to this historical page on Alberta Energy.
In 2007 the Department of Energy developed the following info-series PDFs ( ):
- What are royalties?
- What is a fair share?
- Royalties: History and Description
- Bonuses and Land Rental Fees
- Corporate Income Tax
- Conventional Oil and Natural Gas Royalty Programs
2007 Commissioned technical reports describing various aspects of Alberta's royalty systems:
- Alberta’s Oil Sands Fiscal System - Historical Context and System Performance
- Appendix "A": Markets and Pricing for Alberta Bitumen Production
- Preliminary Fiscal Evaluation of Alberta Oil Sands Terms, by Pedro van Meurs
- Comparative Analysis of Fiscal Terms for Alberta Oils Sands and International Heavy and Conventional Oils, Consulting by Pedro van Meurs, May 17, 2007
- Fiscal Options for Alberta Oil Sands, Consulting by Pedro van Meurs, May 30, 2007
- Proposed Fiscal Options, Consulting by Pedro van Meurs
- Alberta’s Conventional Oil and Gas Fiscal System, Overview of the Industry
- Alberta’s Conventional Oil and Gas Fiscal System, Investor Economics and Fiscal System Comparison
- Alberta’s Conventional Oil and Gas Fiscal System, Impact of Potential Royalty Change on Industry Activity
- Review of Conventional Oil and Gas Terms of Alberta, Consulting by Pedro van Meurs, July 29, 2007
Current Royalty information
A royalty competitiveness review followed the royalty review, The review compared investment in Alberta’s oil and gas resources relative to competing jurisdictions, with a particular focus on British Columbia, Saskatchewan and on-shore United States; e.g., Texas. All components of conventional oil and gas operations including regulatory efficiency, fiscal aspects, availability of labour, and other costs were considered.
Alberta success metrics include:
- crude oil and natural gas production
- oil and natural gas prices
- land sales
- total metres drilled
- total expenditures
- average number of active drilling rigs
- pipeline utilization; and
This competitiveness review, resulted in the Alberta Royalty Framework being adjusted as follows;
- The five per cent front-end rate on natural gas and conventional oil will become a permanent feature of the royalty system
- The maximum royalty rate for conventional and unconventional natural gas will be reduced at higher price levels from 50 to 36 per cent. For conventional oil, the maximum royalty will be reduced from 50 to 40 per cent
- The natural gas and conventional oil price curves have been adjusted to provide lower rates at higher prices
- Extension of the 5% royalty rate for Emerging Resources and Technologies including shale gas, coalbed methane, horizontal gas and horizontal oil wells
- Revisions to the Natural Gas Deep Drilling Program that include extending the program to wells with vertical depths exceeding 2,000 metres
The Adjusted Royalty Framework was in effect from January 1, 2011 to December 31, 2016.
Project Committee Final Report on Alberta's Natural Gas & Conventional Oil Investment Competitiveness by Sierra Systems (March, 2010) Appendix
- Energizing Investment Phase 1, A Framework to Improve Alberta's Conventional Oil and Natural Gas Competitiveness Review ISBN: 978-0-7785-6353-2(PDF) (March 2010)
- Energizing Investment Phase 2, Royalty Curves and Emerging Resources and Technologies (May 2010)
Alberta Energy on behalf of the Government of Alberta filed evidence with the National Energy Board Joint Review Panel as to why the Enbridge Gateway Pipeline application should be approved. Netback Impact Analysis of West Coast Export Capacity (Wood Mackenzie)December 2011
- September 2009 Alberta's Royalty System - Jurisdictional Comparison (Price Waterhouse Coopers)
Alberta Natural Gas and Conventional Oil Investment Competitiveness Study 2009 (posted in 2010)
Industry Information Sessions
- Competitiveness Review Changes, Training Session (October 12 & 13, 2010)
- Joint Industry/ Alberta Energy Crown Royalty Information exchange (October 22, 2010)
- Crown Oil and Gas Royalty Information Exchange Event (October 6, 2011)