The changes coming in November are designed to incentivize Canada’s oilsands majors to invest in new production to fill the province’s proposed one-million-barrel-a-day West Coast oil pipeline, Premier Danielle Smith said Wednesday at an industry expo in Fort McMurray, Alta. (Bloomberg)

Talking point: Royalties are the fees energy companies pay to the province for the right to develop oil and gas resources. The Logic reported in July that talks were underway between industry and governments over incentives to raise capital spending in the oilpatch—including temporarily lower royalty rates in Alberta. Oilsands projects are particularly capital intensive and it can take years for producers to recover their initial multibillion-dollar capital construction costs. Alberta has done this before: the province lowered royalties in the late 1990s, which, alongside higher oil prices, helped trigger a wave of capital investment in oilsands megaprojects.

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