CAPP's technical review of the Alberta Royalty Panel report

This paper provided a response to the Alberta Royalty Review Panel's report to the Alberta government concerning royalty payment requirements. The paper suggested that the panel did not meet the government's objective to find a balance between a reasonable royalty system and a sustainable oil and gas industry. Areas of concern outlined in the paper included flawed data; incorrect costs; and incorrect activity assumptions. It was also suggested that the panel did not adequately consider returns on investments, Alberta's small discovery size, or low production data for wells. The panel also did not account for the higher costs that producers face when compared to other oil-producing regions. Revenues from lease sales were not accounted for. Recommendations and a set of fundamental decision-making principles were provided. It was concluded that policy decisions made as a result of the panel's finding will have a significant impact on Alberta's economic future. 8 refs., 13 figs