Alberta Could See Billions in Budget Surplus Amid High Oil Prices

The Alberta government is expected to record a budget surplus of billions of dollars this fiscal year, driven by higher crude oil prices.

According to University of Calgary economics professor Trevor Tombe, the province has already accumulated a $3.8-billion surplus so far this fiscal year. He said every $1-per-barrel change in oil prices can make a difference of about $680 million to the provincial treasury.

Tombe estimates that if oil prices remain above $66 per barrel, Alberta could end up with a surplus of around $6 billion, instead of the previously projected $9.4-billion deficit.

Alberta relies heavily on revenue from the oil sector. The government of Premier Danielle Smith is also continuing to push for the development of a pipeline project that would transport Alberta oil to the B.C. coast, with the goal of expanding access to international markets.