Higher energy prices expected to deliver boost in Alberta budget update
Alberta's finance minister says the recent bullish run on energy prices is part of a stronger economic story on the province's bottom line that will be revealed in the upcoming second-quarter budget update.
Travis Toews says investment is gaining strength across a range of sectors, but he is not revealing details until the update is delivered Tuesday.
“Certainly, rising energy prices are part of the good news story for Alberta, there's no doubt about that, but tomorrow we can talk about a much broader recovery,” Toews told reporters at the legislature Monday.
“We're seeing improved investment attraction across many key sectors in the province.”
Toews introduced the budget back in February projecting an $18-billion budget deficit with West Texas Intermediate - the North American oil benchmark price - estimated to average US$46 a barrel throughout the year.
But both oil and natural gas, mainstays of Alberta's resource-based economy, have been enjoying banner years. That has prompted the province to adjust both revenues and projections.
In the first-quarter budget update in August, Alberta's West Texas forecast was raised to US$65 a barrel and the deficit projection halved to less than $8 billon.
Projected natural gas revenues more than doubled to $1.2 billion from February's budget.
Economist Trevor Tombe said up until last week West Texas was averaging US$71 a barrel alongside a price surge in natural gas to almost $3.60 a gigajoule - up substantially from the $2.60 gigajoule predicted at budget.
He said all that could mean an extra $2 billion on top of the $10 billion the province was expecting to receive from all non-renewable resources this fiscal year.
“Tomorrow we may very well see certainly above 10 (billion dollars), I think no question about that, but maybe 11 or 12,” said Tombe, a professor at the University of Calgary. “It depends how conservative the government wants to be (in its price forecasts).
“We're still in a time of pretty incredibly high uncertainty (given COVID-19), so all of these numbers should be therefore taken with a grain of salt.
“But it's nice that we've seen some really positive developments for Alberta in recent months,” Tombe added.
Opposition NDP finance critic Shannon Phillips said the government is benefiting from a rise in energy prices, but it still needs to present a plan to help families dealing with the double whammy of a 4.7 per cent rise in inflation to go with higher user fees, bills and insurance rates imposed under Kenney's United Conservative Party.
“It's time for Premier Jason Kenney (and) his finance minister to put their feet on the ground, get their heads out of the clouds and focus on what's actually worrying ordinary people,” said Phillips.
This report by The Canadian Press was first published Nov. 29, 2021.
CTVNews.ca Top Stories
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.