Alberta's royalty framework

Royalties are an important way that Albertans collect value from the development of the province's energy resources.

Services and information

How royalties work

The government owns 81% of oil and gas resources in Alberta and collects royalties from companies when an oil or gas well or oil sands project is in production.

They are a major source of revenue that helps pay for programs and services, such as health and education, enjoyed by all Albertans.

The overall royalty framework took effect January 1, 2017 after a review conducted in 2015. Read the Royalty Review Advisory Panel report.

Taking effect in July 2019, the Royalty Guarantee Act provides certainty that no major changes will be made to the current oil and gas royalty structure for a period of at least 10 years.

  • An industry worker working on equipment.
    Royalties have been a key and consistent source of funding for the province of Alberta.
  • Industrial workers welding a pipeline together.
    Overview of how our current royalty system operates, including factors that affect how much money is collected from resource development.
  • Silhouette of a punpjack (grasshopper) in the dusk.
    The modernized royalty framework came into effect for all new oil and gas wells in 2017.
  • An industrial worker managing equipment.
    How oil sands royalties are collected and how the system is performing, including data for individual projects.

Royalty framework guiding principles

Albertans told the government what they wanted the royalty system to accomplish during the Royalty Review in 2015. The following guiding principles were the foundation of the new royalty framework which took effect January 1, 2017, and how we'll measure its success.