Fuelled by the oil sands, a new rift over royalties

Alberta’s budget painted a bleak outlook for the future of the province’s oil and natural gas royalties. Specifically, the province’s take from its massive oil sands was projected to fall by half within three years, even as production is surging and energy companies are booking their best-ever profits.

The issue is set to move from budget documents to public debate as a six-member review panel today starts public hearings — the most extensive ever — to look at royalties and taxes, in particular for the oil sands.

At stake are billions of dollars. Energy executives insist they’re paying their fair share, but provincial projections suggest industry is getting a better deal than citizens.

GlobeandMail