Alberta takes decisive action to get more oil to market

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Published

6 years ago

3 minute read

February 19, 2019

A historic rail deal between Canadian Pacific Railway, Canadian National Railway and the Government of Alberta means all Albertans will get a better price for our energy resources.

Premier Notley announces Alberta’s new investment in crude-by-rail export capacity.

This strategic investment by the Alberta government will see an estimated 4,400 rail cars move up to 120,000 barrels per day by 2020. Albertans can look forward to seeing rail cars transport Alberta oil as early as July 2019.

This is another part of our Made-in-Alberta energy strategy – building on Alberta’s energy strengths to get more value from our resources and create more jobs.

“Each and every Albertan owns our energy resources and deserves to get top dollar for them. We are taking decisive actions to protect people and to protect our natural inheritance. When challenges are placed in front of us, we overcome them. I’m going to keep working every day to fight for a better future for every person who calls Alberta home.”

Premier Rachel Notley

In 2018, Premier Notley laid out short, medium and long-term plans to get top dollar for Alberta’s energy resources. In the short term, the province temporarily curtailed oil production to address the storage glut. Over the long-term, the Premier continues to fight for pipelines and today’s rail deal means Alberta can expand take-away capacity over the medium term.

This investment in increased rail capacity totals about $3.7 billion. With the anticipated commercial revenue and increased royalty and tax revenues, the province anticipates generating approximately $5.9 billion over the next three years.

The Government of Alberta will purchase crude oil from producers and load it onto the rail cars at onloading facilities across the province. The crude oil will then be shipped to market. These actions will help industry including small producers who may not have the ability to take this action on their own.

In developing its Crude-by-Rail strategy, the Alberta government has also taken care to ensure that additional rail cars carrying oil will have no impact on the shipments of agricultural products.

Quick facts

$3.7B investment provides Albertans with $5.9B in revenues over three years.
Approximately US$4 per barrel reduction projected in differential between West Texas Intermediate and Western Canadian Select from early 2020 to late 2021.
Additional 120,000 barrels a day of rail capacity is anticipated by 2020.
4,400 rail cars will be used to transport oil. The first complement of rail cars are expected to start transporting Alberta oil in July 2019.
Rail cars include DOT-117J and DOT-117R models, which meet all current safety standards outlined by Transport Canada.

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Alberta

Alberta fiscal update: second quarter is outstanding, challenges ahead

Published on November 21, 2024

Government of Alberta

Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.

Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.

The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.

Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.

“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”

Nate Horner, President of Treasury Board and Minister of Finance

Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:

$716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
$125 million to address enrollment growth pressures in Alberta schools.
$847 million for disaster and emergency assistance, including:
- $647 million to fight the Jasper wildfires
- $163 million for the Wildfire Disaster Recovery Program
- $5 million to support the municipality of Jasper (half to help with tourism recovery)
- $12 million to match donations to the Canadian Red Cross
- $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
$240 million more for Seniors, Community and Social Services to support social support programs.

Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.

After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.

Revenue

Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:

$16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
$20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.

Expense

Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.

Surplus cash

After calculations and adjustments, $2.9 billion in surplus cash is forecast.

$1.4 billion or half will pay debt coming due.
The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.

Contingency

Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.

The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.

Debt

Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.

Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.

Related information

2024-25 Second Quarter Fiscal Update and Economic Statement

Alberta

Alberta government announces review of Trudeau’s euthanasia regime

Published on November 21, 2024

Todayville

From LifeSiteNews

By Anthony Murdoch

Alberta announced it ‘is reviewing how MAID is regulated to ensure there is a consistent process as well as oversight that protects vulnerable Albertans, specifically those living with disabilities or suffering from mental health challenges.’

The Conservative provincial government of Alberta is pushing back against the Canadian federal government’s continued desire to expand euthanasia in the nation, saying it will launch a review of the legislation and policies surrounding the grim practice, including a period of public engagement.

The United Conservative Party (UCP) government under Premier Danielle Smith in a press release said the province needs to make sure that robust safeguards and procedures are in place to protect vulnerable people from being coerced into getting euthanatized under the MAiD (Medical Assistance in Dying) program.

“Alberta’s government is reviewing how MAID is regulated to ensure there is a consistent process as well as oversight that protects vulnerable Albertans, specifically those living with disabilities or suffering from mental health challenges,” said the government Monday.

The government said a online survey regarding MAiD open to all Albertans who have opinions about the deadly practice will be available until December 20.

“We recognize that medical assistance in dying is a very complex and often personal issue and is an important, sensitive and emotional matter for patients and their families,” said Alberta’s Minister of Justice and Attorney General Mickey Amery.

Amery said it is important to ensure this process has the “necessary supports to protect the most vulnerable.”

The government said that it will also be engaging with academics, medical associations, public bodies, as well as religious organizations and “regulatory bodies, advocacy groups” regarding MAiD

The government said all information gathered through this consultation will “help inform the Alberta government’s planning and policy decision making, including potential legislative changes regarding MAID in Alberta.”

When it comes to MAiD, Prime Minister Justin Trudeau’s Liberal government sought to expand it from the chronically and terminally ill to those suffering solely from mental illness.

Alberta’s Minister of Mental Health and Addiction Dan Williams said that the UCP government has been “clear” that it does not “support the provision of medically assisted suicide for vulnerable Albertans facing mental illness as their primary purpose for seeking their own death.”

“Instead, our goal is to build a continuum of care where vulnerable Albertans can live in long-term health and fulfilment. We look forward to the feedback of Albertans as we proceed with this important issue,” he noted.

The Alberta government said that as MAiD is “federally legislated and regulated” it is main job will be to try and make sure that it protects “vulnerable individuals” as much as possible.

Alberta’s Minister of Health Adriana LaGrange reaffirmed that the Alberta government “does not support expanding MAID eligibility to include those facing depression or mental illness and continues to call on the federal government to end this policy altogether.”

The number of Canadians killed by lethal injection under the nation’s MAiD program since 2016 stands at close to 65,000, with an estimated 16,000 deaths in 2023 alone. Many fear that because the official statistics are manipulated the number may be even higher.

To combat Canadians being coerced into MAiD, which LifeSiteNews has covered, the combat pro-life Delta Hospice Society (DHS) is offering a free “Do Not Euthanize Defense Kit” to help vulnerable people “protect themselves” from any healthcare workers who might push euthanasia on the defenseless.