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Part of Royalties

Resource royalties

Alberta is resource rich with oil, gas, oil sands, coal and mineral deposits. Calculators help developers estimate royalty costs.

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Resource royalties

Oil and natural gas

Alberta has always been in the top 5 as a producer of crude oil and natural gas in the world. Alberta’s abundance of natural gas liquids such as propane and butane, and heavier hydrocarbons like condensate are driving Alberta’s oil and gas exploration, since they receive much higher prices compared to natural gas. Price differences are explained in the fact sheet Not all oil is equal.

Technology has increased natural gas and crude oil production, unconventional resource potential and development explains multistage hydraulic fracturing completion technology, multiple wells from a pad and horizontal drilling which is the predominant method in Alberta.

Royalty guidelines

Royalty calculators

Oil sands

Alberta's oil sands are the 4th largest proven crude oil reserves in the world, after Venezuela, Saudi Arabia and Iran. Oil sands are a naturally occurring mixture of bitumen (oil that is too heavy or thick to flow or be pumped without being diluted or heated), sand, clay or other minerals and water. The cost of removing impurities and adding diluent is considered in the royalty calculation, it is a revenue-minus-cost structure that recognizes the unique revenues and costs for each oil sands project, this is explained in the oil sands overview.

Coal

Coal-bearing formations underlie about 300,000 square kilometres, almost half of Alberta. The cost to develop and produce coal is also considered in the coal royalty structure.

Minerals

Non-energy minerals excavated and mined in Alberta include sand and gravel, sandstone and other building stone, iron and magnetite, and gold. Salt and limestone continue to be the leading non-fuel minerals produced in Alberta.

Other minerals produced or potentially available in Alberta include:

  • metallic minerals
  • diamonds
  • ammonite
  • other precious stones
  • industrial minerals
  • stone

Each mineral type has a different royalty structure.

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Connect with Oil and Natural Gas royalties:

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