Alberta Unveils Plan for New Oil Royalty Framework to Boost Pipeline Investment

Alberta Premier Danielle Smith has hinted at introducing a new oil royalty framework to encourage investment in the West Coast pipeline project. According to Smith, the framework will be announced this fall and is aimed at giving companies enough confidence to fill the pipeline.

The Alberta government is working with Ottawa to 'de-risk' the pipeline and make it more attractive for investors. Smith believes that a new royalty framework will help to incentivize greenfield production and double oil production in Canada.

Energy analysts, such as Heather Exner-Pirot, have taken notice of this announcement and are crediting the same approach used during the last oil sands buildout. Exner-Pirot noted that the same approach 'worked like a charm' and credits it for Alberta's current royalty revenue.