Oil Sands Rates of Return

This page provides rates of return statistics, including Long Term Bond Rate and Non-Arm's Length Transactions for Non-Basic Pipelines. 

Year Long Term Bond Rate (Simple Average) Non-Arm's Length Transaction Non-Basic Pipeline
Monthly Rate Year End Rate Rate of Return on Capital (RORC) Deemed Corporate Income Tax
2014
2013 2.84 7.03% Pg. 4 [see breakdown including prior year data] 25.00% FINAL
2012 2.43 7.10% 25.00% FINAL
2011 3.29 7.98% 26.50% FINAL
2010 3.73 8.63% 28.00% FINAL
2009 3.90 8.84% 29.00% FINAL
2008 4.05 9.07% 29.50% FINAL
2007 4.32 9.25% 32.12% FINAL
2006 4.28 9.83% 34.50% FINAL
2005 4.40 10.77% 37.62% FINAL
2004 5.14 11.36% 38.87% FINAL
2003 5.34 12.64% 45.00% fixed
2002 5.68 12.54% 45.00% fixed
2001 5.76 12.65% 45.00% fixed
2000 5.71 12.92% 45.00% fixed
1999 5.72 12.60% 45.00% fixed
1998 5.59 13.18% 45.00% fixed
1997 6.66 14.12% 45.00% fixed
1996 7.75 15.19% 45.00% fixed
1995 8.41 n/a n/a n/a
Refer to:

Bank of Canada Benchmark Bond Yields (Long Term Bond Rate)

Bank of Canada Weekly Financial Statistics

Tips on copying LTBR for reporting

More about these Rates of Return:

Return Allowance: All pre-payout projects are allowed a return allowance on the excess of cumulative costs less cumulative revenue. For post-payout projects, a return allowance may be claimed if a project has a net loss for the year. In the case of pre-payout projects, the amount is calculated monthly; in the case of post-payout projects, the amount is calculated annually. The rate of the return allowance is tied to the Long Term Bond Rate as set by the Bank of Canada. The legislative authority for the return allowance is provided by section 2 of the Oil Sands Allowed Costs (Ministerial) Regulation.

NAL Pipeline Return Rate: Pipelines used to transport bitumen or bitumen blend to market are not allowed as project assets. As a result, only a per unit charge is allowed based on volumes actually transported. In the case of non-arm's length pipelines, the amount charged is calculated by a formula. The formula includes a return on capital component, which is tied to the return allowed by the National Energy Board for multi-rate pipelines. More information on this cost of service formula can be found in section 5.3 of the Oil Sands Royalty Guidelines, 2012.