Alberta’s Smith unveils new oil sands royalty regime
Alberta Premier Danielle Smith has announced a new royalty regime for oil sands production to encourage investment and increase crude output. The program offers lower royalty rates for the first 10 years of new projects.
Why it matters
This policy shift aims to revitalize the energy sector in Alberta by providing long-term fiscal stability to attract capital for large-scale oil production.
The Suncor oil sands plant at the Alberta’s Oil Sands, which contain one of the world's largest unconventional petroleum reserves. Todd Korol/Reuters
The Alberta government will lower royalty rates on some new oil sands production next spring as an incentive to lure investment to the province in its push to increase crude production.
The Alberta Oil Sands Growth Program was announced Friday by Premier Danielle Smith in Calgary, flanked by the chief executive officers of major oil companies in the province.
Ms. Smith wants to double Alberta’s oil production to eight million barrels per day. Getting there – and filling new pipeline capacity that is on its way – will require the province to attract major investments, she said.
“Industry has been whipsawed with so many different policy changes that it’s up to governments to create a stable environment,” the Premier said.
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