Canada

Shell has been operating in Canada since 1911. Shell's Downstream business in Canada is anchored in our Scotford Complex. Scotford is a large refining and petrochemical facility that includes two bitumen upgraders, an oil refinery, two chemicals facilities and the Quest carbon capture and storage (CCS) facility. Shell's Sarnia Manufacturing Centre in Ontario includes a refinery and chemicals plant. Shell also has trading, aviation, sulphur and lubricants businesses. Our retail business has around 1,400 service stations.

Our Alberta Light Tight Oil asset produces over 28,000 barrels of oil equivalent per day. In British Columbia, we produce natural gas at our Groundbirch asset, which has more than 500 producing wells and four gas plants. Shell also has a 40% interest in the LNG Canada joint venture, which is currently in the construction phase.

Country Financial Analysis

The statutory corporate income tax rate in Canada was 26.59% in 2019.

The cycle of upstream projects results in large capital expenditures that generate tax deductions in the early years in advance of the associated revenue production. In compliance with Canadian tax law, the 2019 profit before tax is largely offset by losses incurred in previous years. Tax is paid by profitable entities which did not have losses carried forward from previous years.

Our Payments to Governments Report for 2019 also shows that Shell paid around $49 million in royalties and fees.