July 11, 2024
Royalty rates represent the percentage of revenue that companies pay to the government and/or landowners for the right to extract oil.
- Bighorn Energy has the highest royalty rate of all producers at 40.0%. Strathcona Resources (32.1%) and Suncor Energy (27.5%) round out the top 3.
- The next 4 range from a high of 24.3% (Imperial Oil) to 22.2% (CNRL).
- Rounding out the top 10 shows Gear Energy with a royalty rate of 19.3% down to 14.8% for Obsidian Energy.
- All others have the lowest royalty rates ranging from 8.4% to 8.80% indicating a uniformity in lower royalty rates among these companies.
Royalty rates differ among different companies reflecting different contractual agreements with government authorities and/or landowners for resource extraction rights.
Source: Alberta Oil Sands Royalty Data, 2022