Friday, April 12, 2024

No Substantial Change in Royalty Review

The Alberta Government’s Royalty Review Advisory Panel’s recommendations to the province were made public last week. They concluded that Alberta’s royalties are similar to other jurisdictions but that the industry’s costs are higher.

The panel recommended a modernized framework that sets drilling cost allowances for wells according to an industry-wide average. This will allow the industry to remain at the levels they were at previously on Royalties or possibly improve their position.

Premier Rachel Notley said of the report, “Our new system will gradually deliver greater revenue to Albertans while building a more competitive energy sector enhanced by greater transparency and performance measurements to allow Albertans to hold government and industry to our commitments”.

To view the Royalty Review click here.