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Articles

Vol. 7 No. 2 (2016)

Shale Gas Royalties in New Brunswick: An Evaluation

Submitted
January 5, 2017
Published
2016-12-01

Abstract

In 2014, the government of New Brunswick implemented a new royalty regime for natural gas in the context of their regulatory review of shale gas. Advocates of shale gas stressed the additional government revenues that would result. However, the government provided no background documentation to explain their methodology or substantiate their claims. This study provides such estimates, utilizing a methodology that incorporates the intricacies of the New Brunswick system and assumptions drawn from economic and productivity analysis of the North American shale gas industry. Our study challenges previous revenue estimates and provides a transparent methodology to inform public policy.