Alberta Launches Review of Oil, Gas Royalty Regime

The province of Alberta on Friday launched a wide-ranging review of its energy royalty regime, which could result in changes in the tax structure for Canadian oil and gas producers.

The review is necessary to ensure that Albertans are receiving a fair share from the energy development occurring in the region, said Alberta Minister of Finance Lyle Oberg.

“We need to be certain that the royalty regime is providing Albertans with a fair return on the province’s natural resources while maintaining an internationally competitive system that allows the Alberta economy to continue to prosper,” he said in a conference call.

An independent panel will review all aspects of the province’s current royalty arrangements with regard to oil and gas production, and will report by Aug. 31. The government will then consider its recommendations and decide whether to change the province’s tax structure, Oberg said.

Dow Jones Newswires