Page 7 - NorthAmOil Week 08 2022
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NorthAmOil PERFORMANCE NorthAmOil
Rising oil production
and crude prices are
boosting Alberta’s
revenues.
Alberta forecasts first budget surplus
in eight years amid rising oil prices
ALBERTA THE Canadian province of Alberta is expecting demand and ongoing supply challenges.
a budget surplus in the 2022-23 fiscal year as “In 2022 Alberta’s economy will fully recover
rising oil prices and growing production boost from the contraction that first started in 2014
provincial resource revenue. The surplus will be and we will lead the nation in economic growth,”
the first since the 2014-15 fiscal year, prior to the Toews said. He added, though, that the province
recent oil price downturns, which hit Alberta was working to diversify its economy and reduce
hard. its reliance on commodities in the wake of recent
Alberta Minister of Finance Travis Toews volatility. The turnaround
said this week that the province anticipated a Oil and gas accounts for around 17% of
surplus of CAD500mn ($393mn) in the 2022- Alberta’s GDP. The province anticipates receiv- in the province’s
23 fiscal year, which begins on April 1, up from a ing CAD13.8bn ($10.8bn) in resource revenue
CAD3.2bn ($2.5bn) deficit in the current fiscal in 2022-23, up from CAD13.2bn ($10.4bn) in financial fortune
year. This year’s deficit has been revised down 2021-22. It expects to receive bitumen royalties
significantly from a forecast of CAD18.2bn of CAD10.3bn ($8.1bn) in 2022-23. comes at a
($14.3bn) made a year ago. The turnaround in the province’s financial welcome time for
Looking further ahead, Alberta is also fore- fortune comes at a welcome time for Alberta
casting surpluses of CAD900mn ($707mn) Premier Jason Kenney, who faces a leadership Alberta Premier
in 2023-24 and CAD700mn ($550mn) in review by the United Conservative Party (UCP)
2024-25. The provincial government has also in April. Kenney has come under fire for his han- Jason Kenney.
pledged to balance its budget for the next three dling of the coronavirus (COVID-19) pandemic
years. and has seen his approval rating fall. By mid-Jan-
The government based its 2022-23 budget uary 2022, his approval rating had slumped to
assumptions on an average US crude price of 26%.
$70 per barrel. Currently, West Texas Inter- People attending the review will vote on
mediate (WTI) prices are trading above $91 whether they approve of Kenney. If a majority
per barrel, but briefly topped $100 per barrel votes ‘no’, a leadership race will be triggered
on February 24 following the start of Russia’s immediately. Kenney will therefore have to
attack on Ukraine. Even prior to the attack on hope that the province’s improved financial
Ukraine, though, analysts had increasingly performance will help shore up support within
been forecasting higher oil prices amid rising his party.
Week 08 24•February•2022 www. NEWSBASE .com P7
