Overview

Global energy markets have shifted over time, along with Alberta’s production profile. Most easy-to-access conventional oil and gas fields have been depleted and production has shifted to higher cost bitumen extraction in Alberta’s three oil sands areas.

A typical well today looks a lot different than one drilled 30 years ago, or even 10 years ago. Horizontal drilling has become the norm in thermal, in-situ resource extraction. In addition, the oil sands resource – which only 15 years ago represented a small fraction of total royalties – now makes up the majority of royalty revenue.

These factors are all important considerations when looking back at Alberta’s royalties over a period of time.