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Alberta resource revenue plunges to historic low
Alberta has been through booms and busts before, but the scale of the current slide in oil and gas revenues is on a level that no government has seen in modern history.
Total revenues from non-renewable resources are expected to ring in just shy of $2.5 billion in the current fiscal year, which ends on March 31.
That will represent a mere 5.7 per cent of the province's total revenue for the year — by far the lowest on record.
The lowest take, previously, was 14.1 per cent in 1998-99, according to historical data from Alberta Energy.
Since 1981, the province has received about 26 per cent of its annual revenue, on average, from non-renewable resources. In three of those years, it peaked above 40 per cent.
So what does it mean for Alberta when royalties plunge to the depths they're at now?
"It's a real challenge for the future," said Janice Plumstead, a senior economist with the Canada West Foundation.
"Everything is pointing to, in the global market, that the price of oil is not going to increase appreciably in 2016. And I believe, with the inventory and supply that's available, that it might even take into 2017 until prices begin to rise again and that supply is actually taken up."
"So we could be looking at a really challenging budget period for Alberta for at least the next two years."
Alberta resource revenue plunges to historic low - Calgary - CBC News
Alberta resource revenue plunges to historic low
Alberta has been through booms and busts before, but the scale of the current slide in oil and gas revenues is on a level that no government has seen in modern history.
Total revenues from non-renewable resources are expected to ring in just shy of $2.5 billion in the current fiscal year, which ends on March 31.
That will represent a mere 5.7 per cent of the province's total revenue for the year — by far the lowest on record.
The lowest take, previously, was 14.1 per cent in 1998-99, according to historical data from Alberta Energy.
Since 1981, the province has received about 26 per cent of its annual revenue, on average, from non-renewable resources. In three of those years, it peaked above 40 per cent.
So what does it mean for Alberta when royalties plunge to the depths they're at now?
"It's a real challenge for the future," said Janice Plumstead, a senior economist with the Canada West Foundation.
"Everything is pointing to, in the global market, that the price of oil is not going to increase appreciably in 2016. And I believe, with the inventory and supply that's available, that it might even take into 2017 until prices begin to rise again and that supply is actually taken up."
"So we could be looking at a really challenging budget period for Alberta for at least the next two years."
Alberta resource revenue plunges to historic low - Calgary - CBC News