What could the royalty regime deliver to Albertans if the government updated the structure to reflect today’s economic realities and Albertan’s interest in maximizing the revenues from their resource?
To explore the implications of different royalty structures for citizens and companies, the Pembina Institute developed “net cash flow” models of typical oil sands projects — i.e., projects involving either mining and upgrading or in situ technology.
A company’s share of the net cash flow (revenues after expenses) from a project represents its profits. These profits are the commission companies receive for undertaking resource developments on behalf of Albertans. The Alberta...