Integrated oil producers Cenovus Energy and Suncor Energy both saw a hefty jump in third-quarter profits this year, with combined net earnings that topped $7 billion during the period.

The two Calgary-based producers also earmarked close to $7 billion, combined, to government royalties and taxes during the quarter.

As the country’s largest oilsands producers have seen profits take off with rising production and high crude prices this year, Canadian governments are also seeing a big lift from an upturn in global energy markets.

“The prices we’re seeing today . . . it’s about a billion dollars a month in additional revenues to the federal government,” University of Calgary economist Trevor Tombe said Thursday.

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“At this price and the futures prices, we’re looking now at a surplus in Alberta of around $13 billion, if things hold, and that’s a massive come-around from the $9-billion deficit that the budget projected back in February.”

The issue of oilpatch profits and government payments will be increasingly under the spotlight as Ottawa releases its new budget on Thursday — one aided by more tax revenue from the sector — and when the province releases its second-quarter fiscal update in the coming weeks.

As well, Premier Danielle Smith has said the province will announce a new royalty framework before the end of this month, potentially providing incentives for operators to invest in new oilsands growth projects.

“On the federal side, they’re going to see an important boost in revenues and that will explain why we’re going to see, likely, a smaller deficit for the current fiscal year, because of........

© Calgary Herald