The bad news for Alberta government: its new budget pegs oil prices at US$58 per barrel, and prices crashed Monday to around US$30, even before the fiscal year begins next month.
The other bad news: The lower oil-price scenario forecast a 10-per-cent hit to the province’s income taxes and resource revenues this year. Alberta Premier Jason Kenney knew he was inheriting a leaky boat and choppy waters when he took the wheel last year. Almost nobody could have expected the simultaneous iceberg collisions that are the coronavirus sending energy demand off a cliff, and a bombastic Russia-Saudi spat flooding the market with tankers-full of excess supply.Compounding crises like these tend to reshuffle a politician’s priorities.
As for his deficit-erasing pledge: “I was always clear, however, that if we were sideswiped by a major global economic downturn, that that could be put at risk.”
Hand already pushed away. Cap blew away into the dark clouds and forbidding wind. The Hill cupboard is bare.
this lefty rag has only one place The outhouse
Oil is Canada’s biggest export (approx $100B/yr). Nothing else come close. The auto sector is distant second place at $62B/yr. This has a huge impact on trade and our Cdn dollar. All of Canada suffers, not just Alberta.
Cap in hand? What, how just retain some of the Quebec un-equalization robbery and call it a day!
They didn’t “plan” on sagging prices. They budgeted in higher prices, and had no foresight.
I would think that the feds would go to Alberta.. or any province that has contributed so much for so long to the country as a whole, and ask what they can do to help a now struggling province. But apparently that's not how it works in Canada.
All of Canada will be going cap in hand.
Can we start by clarifying the current oil price is a result of a supply and demand feud and not the virus? You're Canada's news voice. Do better.
What happened to Wexit?
markusoff What a coincidence! It's Slap-a-Saudi-or-Russian-Policymaker Day. Really hard. Right, Greta?