Alberta to Collect Bitumen Royalties In-Kind, Strengthening Global Market Position

EDMONTON – March 10, 2025 – The Alberta government has unveiled a major shift in its oil and gas strategy, announcing that it will begin collecting bitumen royalties in-kind (BRIK) alongside its existing conventional royalties in-kind (CORIK). This move is designed to maximize resource revenue, enhance Alberta’s control over its oil sales, and position the province as a key player in the global heavy oil market.

The initiative, led by the Alberta Petroleum Marketing Commission (APMC), will allow the province to bundle its conventional and bitumen royalty barrels to attract new private sector investments and seek high-value international deals. By taking greater control over oil marketing, Alberta aims to increase energy exports, drive economic growth, and support pipeline expansion.

Alberta Expands Global Energy Reach

On March 10, 2025, Premier Danielle Smith met with a global oil and petrochemical multinational to discuss a landmark deal for the overseas transport and sale of two million barrels per month of Alberta-owned heavy oil.

“This program gives the province greater control over where we sell our oil,” said Premier Smith. “Receiving bitumen royalties in-kind is another tool in our investment toolbox that will maximize our resource potential, expand our market reach, and bring more value to Albertans.”

The threats to Canada from American President Donald Trump on enacting tariffs on Canadian exports to the United States have put both Canadian business and provincial and federal governments into a state of action. Moving to find new markets and as Ontario has done putting a pre-emptive 25% Energy Surcharge into place today, are examples that Canada is taking these threats very seriously.

Energy Minister Brian Jean emphasized that this strategy will bolster Alberta’s position in the global energy landscape. “This move will promote increased pipeline capacity, expand our global markets, and contribute to global energy security,” Jean said.

Strengthening Alberta’s Energy Future

With a growing volume of royalty barrels under government control, APMC will negotiate new agreements with international buyers, pipeline operators, and industry leaders to ensure Albertans benefit fully from their natural resources. The additional oil volumes will also serve as an incentive for pipeline expansion, supporting Alberta’s goal of doubling its oil and gas production.

“APMC will seek commercially smart deals that maximize returns for Albertans and support long-term energy industry growth,” said Adrian Begley, CEO of APMC. “We are committed to securing transactions that drive economic prosperity for the province.”

Amid global trade uncertainty and energy security concerns, Alberta’s government is focused on strengthening its economy through energy diplomacy, investment, and innovation—ensuring long-term stability and continued prosperity for the province.