Alberta
Low oil prices could have big consequences for Alberta’s finances
From the Fraser Institute
By Tegan Hill
Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.
The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.
Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.
Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.
Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.
Fortunately, the Smith government can mitigate this volatility.
The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.
Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.
Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.
And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.
Alberta
Alberta is investing up to $50 million into new technologies to help reduce oil sands mine water
Technology transforming tailings ponds
Alberta’s oil sands produce some of the most responsible energy in the world and have drastically reduced the amount of fresh water used per barrel. Yet, for decades, operators have been forced to store most of the water they use on site, leading to billions of litres now contained largely in tailings ponds.
Alberta is investing $50 million from the industry-funded TIER system to help develop new and improved technologies that make cleaning up oil sands mine water safer and more effective. Led by Emissions Reduction Alberta, the new Tailings Technology Challenge will help speed up work to safely reclaim the water in oil sands tailing ponds and eventually return the land for use by future generations.
“Alberta’s government is taking action by funding technologies that make treating oil sands water faster, effective and affordable. We look forward to seeing the innovative solutions that come out of this funding challenge, and once again demonstrate Alberta’s global reputation for sustainable energy development and environmental stewardship.”
“Tailings and mine water management remain among the most significant challenges facing Alberta’s energy sector. Through this challenge, we’re demonstrating our commitment to funding solutions that make water treatment and tailings remediation more affordable, scalable and effective.”
As in other mines, the oil sands processing creates leftover water called tailings that need to be properly managed. Recently, Alberta’s Oil Sands Mine Water Steering Committee brought together industry, academics and Indigenous leaders to identify the best path forward to safely address mine water and reclaim land.
This new funding competition will support both new and improved technologies to help oil sands companies minimize freshwater use, promote responsible ways to manage mine water and reclaim mine sites. Using technology for better on-site treatment will help improve safety, reduce future clean up costs and environmental risks, and speed up the process of safely addressing mine water and restoring sites so they are ready for future use.
“Innovation has always played an instrumental role in the oil sands and continues to be an area of focus. Oil sands companies are collaborating and investing to advance environmental technologies, including many focused on mine water and tailings management. We’re excited to see this initiative, as announced today, seeking to explore technology development in an area that’s important to all Albertans.”
Quick facts
- All mines produce tailings. In the oil sands, tailings describe a mixture of water, sand, clay and residual bitumen that are the byproduct of the oil extraction process.
- From 2013 to 2023, oil sands mine operations reduced the amount of fresh water used per barrel by 28 per cent. Recycled water use increased by 51 per cent over that same period.
- The Tailings Technology Challenge is open to oil sands operators and technology providers until Sept. 24.
- The Tailings Technology Challenge will invest in scale-up, pilot, demonstration and first-of-kind commercial technologies and solutions to reduce and manage fluid tailings and the treatment of oil sands mine water.
- Eligible technologies include both engineered and natural solutions that treat tailings to improve water quality and mine process water.
- Successful applicants can receive up to $15 million per project, with a minimum funding request of $1 million.
- Oil sands operators are responsible for site management and reclamation, while ongoing research continues to inform and refine best practices to support effective policy and regulatory outcomes.
Related information
From LifeSite News
The government said that it has decided to stop ‘waste’ by not making the shots free starting this fall.
Beginning this fall, COVID shots in the province will have to be pre-ordered at the full price, about $110, to receive them. (This will roll out in four ‘phases’. In the first phases COVID shots will still be free for those with pre-existing medical conditions, people on social programs, and seniors.)
The UCP government in a press release late last week noted due to new “federal COVID-19 vaccine procurement” rules, which place provinces and territories as being responsible for purchasing the jabs for residents, it has decided to stop “waste” by not making the jab free anymore.
“Now that Alberta’s government is responsible for procuring vaccines, it’s important to better determine how many vaccines are needed to support efforts to minimize waste and control costs,” the government stated.
“This new approach will ensure Alberta’s government is able to better determine its overall COVID-19 vaccine needs in the coming years, preventing significant waste.”
The New Democratic Party (NDP) took issue with the move to stop giving out the COVID shots for free, claiming it was “cruel” and would place a “financial burden” on people wanting the shots.
NDP health critic Sarah Hoffman claimed the move by the UCP is health “privatization” and the government should promote the abortion-tainted shots instead.
The UCP said that in 2023-2024, about 54 percent of the COVID shots were wasted, with Health Minister Adriana LaGrange saying, “In previous years, we’ve seen significant vaccine wastage.”
“By shifting to a targeted approach and introducing pre-ordering, we aim to better align supply with demand – ensuring we remain fiscally responsible while continuing to protect those at highest risk,” she said.
The UCP government said that the COVID shots for the fall will be rolled out in four phases, with those deemed “high risk” getting it for free until then. However, residents who want the shots this fall “will be required to pay the full cost of the vaccine, the government says.”
The jabs will only be available through public health clinics, with pharmacies no longer giving them out.
The UCP also noted that is change in policy comes as a result of the Federal Drug Administration in the United States recommending the jabs be stopped for young children and pregnant women.
The opposite happened in Canada, with the nation’s National Advisory Committee on Immunization (NACI) continuing to say that pregnant women should still regularly get COVID shots as part of their regular vaccine schedule.
The change in COVID jab policy is no surprise given Smith’s opposition to mandatory shots.
As reported by LifeSiteNews, early this year, Smith’s UCP government said it would consider halting COVID vaccines for healthy children.
Smith’s reasoning was in response to the Alberta COVID-19 Pandemic Data Review Task Force’s “COVID Pandemic Response” 269-page final report. The report was commissioned by Smith last year, giving the task force a sweeping mandate to investigate her predecessor’s COVID-era mandates and policies.
The task force’s final report recommended halting “the use of COVID-19 vaccines without full disclosure of their potential risks” as well as outright ending their use “for healthy children and teenagers as other jurisdictions have done,” mentioning countries like “Denmark, Sweden, Norway, Finland, and the U.K.”
The mRNA shots have also been linked to a multitude of negative and often severe side effects in children and all have connections to cell lines derived from aborted babies.
Many Canadian doctors who spoke out against COVID mandates and the experimental mRNA injections were censured by their medical boards.
LifeSiteNews has published an extensive amount of research on the dangers of the experimental COVID mRNA jabs that include heart damage and blood clots.
Iran nuclear talks were ‘coordinated deception’ between US and Israel: report
Alberta’s grand bargain with Canada includes a new pipeline to Prince Rupert
Punishing Alberta Oil Production: The Divisive Effect of Policies For Carney’s “Decarbonized Oil”
Carney’s European pivot could quietly reshape Canada’s sovereignty
-
Alberta2 days ago
Alberta’s grand bargain with Canada includes a new pipeline to Prince Rupert
-
Business2 days ago
Carney’s European pivot could quietly reshape Canada’s sovereignty
-
Bruce Dowbiggin1 day agoWOKE NBA Stars Seems Natural For CDN Advertisers. Why Won’t They Bite?
-
Health23 hours agoLast day and last chance to win this dream home! Support the 2025 Red Deer Hospital Lottery before midnight!
-
Crime14 hours agoUK finally admits clear evidence linking Pakistanis and child grooming gangs
-
Business18 hours agoCarney praises Trump’s world ‘leadership’ at G7 meeting in Canada
-
Energy1 day agoCould the G7 Summit in Alberta be a historic moment for Canadian energy?
-
Crime1 day agoMinnesota shooter arrested after 48-hour manhunt