Q: I looked everywhere and could not find this answer. Could you help me out?
A: These excerpts from Alberta Royalty Review documents. You may read the entire document at: http://www.albertaroyaltyreview.ca/panel/final_report.pdf In a nut shell: The gov't received 40% of the total yearly revenue - approx. 14.3 billion dollars. Total Revenues collected by the Ab gov't 2003/04 $8.046 billion 2004/05 $10.152 billion 2005/06 $14.347 billion 2006/07 $11.745 billion (Q3 Update for 2006-07) The current royalty features have 3 main objectives: To extend the economic life of mature pools to maximize recovery of oil reserves; To promote the development of new and more efficient technologies; and To promote the exploration and development of new reserves while providing the province with a fair share of the value of the resource. Read entire reports at - Anything you ever wanted to know about the Royalty Program is found here. http://www.energy.gov.ab.ca/Oil/771.asp Oilsands revenue" 2003/04 $197 million 2004/05 $718 million 2005/06 2005/06 $ 950 million 2006/07 $2.394 billion (Q3 Update for 2006-07) This site explains WHAT royalties are and where they come from: http://www.energy.gov.ab.ca/Org/pdfs/InfoSeries-Report1-Royalty.pdf The royalty rate after payout is currently the greater of: 25% of the project's net revenue (gross revenue minus allowable costs), and 1% of the project's gross revenue. While the royalty rate is a flat rate, the rate is price sensitive as it adjusts with profits which are correlated with oil prices. Entire report can be read at: http://www.stikeman.com/cps/rde/xchg/se-en/hs.xsl/10381.htm These sites not only tell what royalties are, how they are calculated but where they go. Hopefully this has answered your question. Good Luck