http://www.ualberta.ca/~parkland/oilandgas.html#Oil_and_Gas_Rents

For example, the above cited study examined the revenues derived by the Province of Alberta, an "oil rich" province in Western Canada,  compared to those realized in other jurisdications such as Alaska. What is of particular interest at this point in our work is the definition of "rents" used in the study, quoted to the right.  * What are Oil and Gas Rents?

Economic rent generated by oil and gas production is the net difference between the international commodity price of oil and gas less all costs of production (including, exploration, development, operating, capital and transportation costs), including an allowance for a normal return to capital employed (profit) but before royalties, taxes, and duties. Economic rent is thus the net revenues generated from the production of oil and gas.

Royalties, fees and other taxes are used by government to collect energy rents from the producer, normally industry. In principle, 100% of the economic rent derived from oil and gas production belongs to Albertans, who are the owners or shareholders of these nonrenewable resources. In practice, however, governments seek a balance between maximizing rent collection and the objectives of economic development, investment and a fair tax regime for industry. 

Source.

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