Currently, oil companies pay a one per cent royalty on their revenues until their initial investment is paid off, when the royalty is then increased to 25 percent of revenues. Alberta received CA$14 billion in oil sands revenues the last fiscal year. Described as one of the most powerful oilman in the world, Rex Tillerson made it clear that should the province of Alberta seek a larger portion of the profits, Alberta could suffer a decrease in economic growth. Tillerson suggests that royalties represent interventionist policies similar to those associated with the (much maligned in Alberta) National Energy Program.
Currently, oil companies pay a one per cent royalty on their revenues until their initial investment is paid off, when the royalty is then increased to 25 percent of revenues. Alberta received CA$14 billion in oil sands revenue the last fiscal year. Described as one of the most powerful oilman in the world, Tillerson made it clear that should the province of Alberta seek a larger portion of the profits, Alberta could suffer a decrease in economic growth. Tillerson suggests that royalties represent interventionist policies similar to those associated with the (much maligned in Alberta) National Energy Program.
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