[Verse 1]
Back in seventy-three the world changed its ways
Oil shocks hit and prices went crazy for days
But here's something tricky about oil sands deals
The royalty numbers aren't always what's real
[Chorus]
Near zero on gross but that's not the whole story
Pre-payout means waiting for the real glory
High capex projects need time to break even
Then profit-based royalties start the retrievin'
Don't judge by the gross when the game's just beginning
Post-payout is when the real money starts winning
[Verse 2]
Oil sands are expensive, billions to start
Heavy machinery, plants torn apart
Governments know that these projects take time
So they structure the deals with a two-part design
[Chorus]
Near zero on gross but that's not the whole story
Pre-payout means waiting for the real glory
High capex projects need time to break even
Then profit-based royalties start the retrievin'
Don't judge by the gross when the game's just beginning
Post-payout is when the real money starts winning
[Bridge]
Phase one is recovery, getting costs back
Gross royalties tiny, staying on track
Phase two is the payday, profits roll in
That's when the government's real take begins
[Verse 3]
So when headlines scream about pennies per barrel
Don't get caught up in that media quarrel
The regime's designed with a longer view
Pre-payout sacrifice for revenue true
[Final Chorus]
Near zero on gross but that's not the whole story
Pre-payout means waiting for the real glory
High capex projects need time to break even
Then profit-based royalties start the retrievin'
Two-phase system, it's all by design
First pay the costs back, then profits are mine
[Outro]
Seventy-three taught us energy's power
Royalty structures built for the long hour