Alberta changing oil royalty regime to spur growth, premier says

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Photo by John Diep/Bloomberg via Getty ImagesTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe revised royalty regime, to be announced in November, will be structured to encourage Canada’s oil sands companies to invest in new production, Danielle Smith said at the Oil Sands Expo in Fort McMurray on Wednesday.Alberta’s government sets royalties for oil and gas development because it owns most of the mineral rights in the resource-rich province. The current rules had been guaranteed by the government to not be changed within a 10-year period starting from 2019.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe new framework will be similar to the preferential royalty environment deployed in the past, Smith said. It’s needed, she said, because the message the industry was told for the past decade was they would be winding down operations rather than ramping up.“You can imagine getting shareholders and companies to be in a different mindset has taken a little bit of time,” she said.The Canadian government this week announced a cut on taxes for capital investments that would extend to the oil industry. Alberta is pushing forward an effort to build a new oil pipeline that would largely run along the existing Trans Mountain Corp. pipeline route and terminate at a deepwater port south of Vancouver.Smith said Alberta is expecting a formal endorsement for the project from the federal Major Projects Office in October and final regulatory approval by September of next year.Once the new royalty framework is announced, “I suspect that you’re going to see a lot of interest in being able to fill that pipeline,” she said, “but there is a little more work we need to do.”We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.