Economics
  Royalties Per Unit
    Tables

The Alberta royalty framework is complex, with royalty rates depending on the current price of oil or natural gas, well productivity, and the type of well classified. As a consequence, it is very hard to compare past royalty frameworks with current ones.

This table is an attempt to make comparisons between royalty frameworks easier. However, this data should be taken with a grain of salt for the following reasons:

  1. Royalties on this page exclude both incentives for oil and gas development and other fees (such as rental fees and bonus fees for the use of crown land). Since incentives have trended down since the early 1980s and bonus fees have trended up (see table), the amount of royalties per unit of oil for earlier years are likely slightly overestimated, and later numbers are likely underestimated.
  2. Production figures are for the calendar year, whereas royalty figures are for the Government of Alberta’s fiscal year. While this should not drastically affect the overall trend in prices, individual yearly royalty rates will not be accurate if production rates or the oil price made a major change that year. For example, the incredible volatility of the royalty rate for synthetic and bitumen is likely caused in part by this effect.
  3. Since older, less productive wells face a lower royalty rate, a shift in the composition of wells in Alberta from high-productivity wells to low-productivity wells would result in an apparent reduction in royalties per unit of oil, even with no policy change. 

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Year  Crude Oil Royalties
$/m3
Natural Gas Royalties
$/thousand m3
Synthetic Crude Oil and Bitumen Royalties
$/m3
Coal Royalties
$/tonne
Real Crude Oil Royalties
2002 $/m3
Real Natural Gas Royalties
2002 $/thousand m3
Real Bitumen Royalties
2002 $/m3
Real Coal Royalties
2002 $/tonne
Crude Oil Royalties as a Percentage of Price
%
Natural Gas Royalties as a Percentage of Price
%
 
 
19681.97  0.65  2.61     10.48  3.47  13.86     12.26  11.82   
19692.07  0.56  1.87     10.52  2.86  9.51     13.28  10.33   
19702.13  0.59  1.26     10.49  2.91  6.20     13.25  10.37   
19712.43  0.62  1.22     11.62  2.95  5.83     13.66  11.00   
19722.55  0.62  1.62     11.65  2.84  7.39     14.26  10.55   
19734.26  0.95  3.26     18.05  4.03  13.81     19.44  14.38   
197412.09  3.16  5.10  0.07  46.14  12.05  19.45  0.27  33.27  30.17   
197514.45  6.97  5.69  0.07  49.82  24.04  19.63  0.26  31.66  31.99   
197617.97  9.59  5.88  0.52  57.77  30.84  18.90  1.66  33.61  27.14   
197721.87  12.49  9.24  1.09  65.08  37.16  27.51  3.25  34.04  27.33   
197829.59  16.79  8.34  1.28  80.85  45.87  22.80  3.50  38.54  31.94   
197927.73  18.34  7.88  0.43  69.32  45.86  19.70  1.09  33.44  30.65   
198031.16  24.60  28.09  0.41  70.81  55.91  63.84  0.93  31.89  29.82   
198138.22  25.61  32.67  0.56  77.22  51.75  66.00  1.13  32.35  29.38   
198242.99  23.90  49.77  0.61  78.30  43.53  90.65  1.10  26.62  25.34   
198351.94  22.59  30.10  0.44  89.39  38.87  51.81  0.75  25.95  22.50   
1984                               
198544.45  20.73  17.53  0.39  70.56  32.90  27.83  0.63  20.74  20.94   
198618.78  13.34  0.74  0.26  28.62  20.33  1.13  0.39  15.93  17.15   
198724.11  11.44  1.32  0.27  35.20  16.71  1.92  0.39  16.98  19.08   
198816.19  9.81  0.99  0.45  22.74  13.78  1.39  0.63  15.36  18.16   
198920.62  9.39  1.43  0.47  27.57  12.56  1.91  0.63  16.38  17.15   
1990                               
199119.92  7.69  1.51  0.73  24.06  9.29  1.83  0.88  15.69  15.81   
199218.97  8.82  3.07  0.42  22.58  10.50  3.66  0.50  14.81  18.11   
199314.04  10.66  3.03  0.36  16.41  12.45  3.54  0.43  11.97  17.75   
199419.87  8.78  9.70  0.35  23.19  10.25  11.31  0.41  16.05  12.90   
199518.90  6.77  12.57  0.53  21.58  7.73  14.35  0.60  13.89  13.55   
199625.30  8.40  19.83  0.43  28.46  9.45  22.30  0.48  15.28  14.26   
1997                               
19989.44  9.11  1.72  0.41  10.34  9.97  1.88  0.45  8.95  13.06   
199923.55  14.78  12.94  0.39  25.35  15.90  13.93  0.42  15.33  16.66   
200034.49  43.20  20.12  0.34  36.15  45.28  21.09  0.36  14.09  26.61   
200123.64  24.64  4.84  0.51  24.18  25.20  4.95  0.52  11.90  12.42   
200230.70  31.81  4.25  0.29  30.70  31.81  4.25  0.29  14.10  22.81   
200326.88  34.58  3.93  0.29  26.15  33.64  3.82  0.29  11.56  15.40   
200436.47  40.49  12.42  0.38  34.83  38.68  11.86  0.36  13.09  17.69   
200544.13  52.48  16.51  0.32  41.24  49.05  15.43  0.30  12.52  17.39   
200644.43  37.74  36.89  0.35  40.73  34.59  33.81  0.32  11.66  15.67   
200754.39  32.99  41.87  0.38  48.78  29.59  37.55  0.34  13.42  14.00   
200861.53  39.13  42.45  0.94  53.93  34.29  37.21  0.83  10.61  13.78   
200969.11     40.90                        
 

References and Related Online Materials

Crude Oil Royalties:Equal to the total crude oil royalties in a year (see table on royalties) divided by the total quantity of crude oil produced that year (see table on natural resource production).  
Natural Gas Royalties:Equal to the total natural gas royalties in a year (see table on royalties) divided by the total quantity of natural gas produced that year (see table on natural resource production). 
Synthetic Crude Oil and Bitumen Royalties:

Equal to the total synthetic crude oil and bitumen royalties in a year (see table on royalties) divided by the total quantity of synthetic crude oil and bitumen produced that year (see table on natural resource production).

Coal Royalties:Equal to the total coal royalties in a year (see table on royalties) divided by the total quantity of coal produced that year (see table on natural resource production). 
Real Crude Oil Royalties:Real prices are calculated using consumer price index data available at http://www40.statcan.gc.ca/l01/cst01/econ46d-eng.htm.
Real Natural Gas Royalties:

Real prices are calculated using consumer price index data available at http://www40.statcan.gc.ca/l01/cst01/econ46d-eng.htm.

Real Bitumen Royalties:Real prices are calculated using consumer price index data available at http://www40.statcan.gc.ca/l01/cst01/econ46d-eng.htm.
Real Coal Royalties:Real prices are calculated using consumer price index data available at http://www40.statcan.gc.ca/l01/cst01/econ46d-eng.htm.
Crude Oil Royalties as a Percentage of Price:

Equal to the nominal royalties per unit of production of crude oil (see this table) divided by the nominal price of crude oil (see oil price table).

Natural Gas Royalties as a Percentage of Price:

Equal to the nominal royalties per unit of production of natural gas (see this table) divided by the nominal price of natural gas (see oil price table).