Opinion: A better way for Alberta to collect royalties: Calgary Herald Op-Ed – CD Howe

Alberta’s much-anticipated royalty review panel has begun drilling down with expert and public consultations. It can find common ground by proposing that the province adopt a best-in-class cash-flow tax for all energy resources in the province.

The status quo needs changing. The province holds auctions in which companies purchase the rights to extract provincially owned oilsands, natural gas or conventional oil. Companies that buy conventional oil or natural gas deposits then pay the government a tax based on the amount they produce. These taxes are called gross-revenue royalties, because companies pay the province a share of their gross production revenues.

The royalty rate applies well by well. Conventional oil and natural gas royalties have had the same broad design for decades.

Read More: https://www.cdhowe.org/opinion-better-way-alberta-collect-royalties-calgary-herald-op-ed