Alberta, Canada, royalty review and its lessons for resource economies

Alberta’s royalty debate has focused on rates, exhibiting a myopic approach to the royalty system. Addressing this, the paper qualitatively appraises the Alberta royalty review from a socio-legal standpoint. It claims that the review reveals the context and lessons that could displace the myopia of the royalty debate: this might lead to a holistic understanding of the economic interests of the government and the private sector in the royalty system, and the moderation of claims over royalties. The context revolves around a consideration of how resource development works, the nature of royalty and the changing landscape of the resource sector, and the lessons are on the nuances that should guide the royalty system, metrics that should apply in the calculation of royalties, broader implications of the royalty system, and backing up royalties in case of the unexpected. Overall, the paper presents broader lessons useful to resource economies.