Primary Country (Mandatory)

United States

Other Country (Optional)

Set News Language for United States

Primary Language (Mandatory)
English
Other Language[s] (Optional)
No other language available

Set News Language for World

Primary Language (Mandatory)
English
Other Language(s) (Optional)

Set News Source for United States

Primary Source (Mandatory)
CNN
Other Source[s] (Optional)

Set News Source for World

Primary Source (Mandatory)
AajTak
Other Source(s) (Optional)
  • Countries
    • India
    • United States
    • Qatar
    • Germany
    • China
    • Canada
    • World
  • Categories
    • National
    • International
    • Business
    • Entertainment
    • Sports
    • Special
    • All Categories
  • Available Languages for United States
    • English
  • All Languages
    • English
    • Hindi
    • Arabic
    • German
    • Chinese
    • French
  • Sources
    • India
      • AajTak
      • NDTV India
      • The Hindu
      • India Today
      • Zee News
      • NDTV
      • BBC
      • The Wire
      • News18
      • News 24
      • The Quint
      • ABP News
      • Zee News
      • News 24
    • United States
      • CNN
      • Fox News
      • Al Jazeera
      • CBSN
      • NY Post
      • Voice of America
      • The New York Times
      • HuffPost
      • ABC News
      • Newsy
    • Qatar
      • Al Jazeera
      • Al Arab
      • The Peninsula
      • Gulf Times
      • Al Sharq
      • Qatar Tribune
      • Al Raya
      • Lusail
    • Germany
      • DW
      • ZDF
      • ProSieben
      • RTL
      • n-tv
      • Die Welt
      • Süddeutsche Zeitung
      • Frankfurter Rundschau
    • China
      • China Daily
      • BBC
      • The New York Times
      • Voice of America
      • Beijing Daily
      • The Epoch Times
      • Ta Kung Pao
      • Xinmin Evening News
    • Canada
      • CBC
      • Radio-Canada
      • CTV
      • TVA Nouvelles
      • Le Journal de Montréal
      • Global News
      • BNN Bloomberg
      • Métro
Men's Lightweight Jacket Buy Now
Womens Ribcage Straight Ankle Jeans Buy Now
4K Camera: 48MP/16X Zoom/3" Flip Screen Buy Now
Sefwon Phantom Black Unlocked Android Smartphone Buy Now
Ripped Skinny Jeans Buy Now
Chunky Knit Cardigans Buy Now
Rose Gold Mesh Women's Watch Buy Now
AUTOMET Long Sleeve Tee Buy Now
EcoSmart Fleece Hoodie Buy Now
CQR Mens Tactical Pants Buy Now
Golden Hour Men's Stainless Steel Chronograph Watch Buy Now
COOFANDY Men's Linen Shirt Buy Now
Blisset 3 Pack High Waisted Leggings for Women Buy Now
4-in-1 Retractable Car Charger (69W USB-C) Buy Now
CRZ Yoga Butterluxe Leggings Buy Now
Under Eye Patches Buy Now
CKKM Men's Waterproof Hiking Shoes Buy Now
Rimless Frame Driving Sun glasses Buy Now
Butterfly Fashion Sunglasses Buy Now
Wedge Sandals Buy Now
MoreBack to News Headlines
Enough of Alberta's roller-coaster. Let's save every cent of resource revenue

Enough of Alberta's roller-coaster. Let's save every cent of resource revenue

CBC
Monday, April 24, 2023 10:40 AM GMT

This column is an opinion by Geoff Salomons, a PhD candidate at the University of Alberta researching provincial resource wealth. For more information about CBC's Opinion section, please see the FAQ.

Alberta's revenue roller-coaster continues.

During the pandemic in 2020, history was made when oil prices went into negative territory. Then they rose and peaked above $122 US per barrel in June 2022 — only to be nearly cut in half shortly thereafter, before a surprise overseas production cut brought prices back to the $80 range.

Within two years, the province's books swung from a $17-billion deficit to a $10.4-billion surplus, and now more modest surpluses are forecast. A ride this wild will push even Alberta's comfort levels. 

This recent volatility perhaps offers a moment to reconsider how Alberta manages its resource revenue. 

Outgoing Finance Minister Travis Toews recently said he'd like to see a more in-depth review of Alberta's "volatile revenue structure." Meanwhile, the Alberta NDP have released a plan, authored by former ATB Financial economist Todd Hirsch, that recommends capping the amount of resource revenue used for government operations.

While this conversation is overdue and welcome, there is a fundamental issue that must be part of it. The Hirsch report rightly notes that "income from natural resource royalties are not, in fact, income. They are the conversion of an asset in one form (physical molecules) into another (dollars)."

Or to put it another way, it is the conversion from natural capital to financial capital. As such, this revenue should be viewed differently than just another income stream the government relies on.

In the mid-1970s, when then-premier Peter Lougheed first made the case for why the Heritage Savings Trust Fund was needed, he compared the spending of resource revenue to selling the house to pay for the groceries. 

Alberta should maximize resource revenue's value over time because, as a form of capital, it is finite. Alberta has a century's worth of oil and gas reserves. But technological obsolescence as we move toward a net-zero world is a concern for our high-cost and high-carbon resources. 

What the value of those resources will be in 30 years is anyone's guess. 

If Alberta is going to truly manage this capital for the long term, the province must get to a point where it can save 100 per cent of the resource revenue it receives. All of it.

This is needed for a few reasons. First, because Alberta did not historically do a lot of saving — even in the Lougheed era savings were capped at 30 per cent of resource revenue, and then shrank to zero — it has some catching up to do. This approach would allow Alberta to save what it can, while it still can. 

Second, saving 100 per cent would dramatically reduce the volatility in the budget. Alberta could still rely on the interest from the Heritage Fund for spending — because in this case, it would be an actual income stream. 

Read full story on CBC
Share this story on:-
Run 3 Space | Play Space Running GamePlay Run 3, the ultimate space tunnel running game with 300+ challenging levels!Adv.
Traffic Jam 3D | Online Racing GameTraffic Jam 3D is a game where you’ll be driving through heavy traffic.Adv.
Duck Hunt | Play Old Classic GamePlay the classic 1984 light gun shooter game Duck Hunt on your browser.Adv.
More Related News
Measles spread 'like wildfire' among unvaccinated children in northeast B.C., health officer says

A pocket of unvaccinated children in northeast B.C. allowed cases of measles in the region to spread "like wildfire," says B.C.'s deputy provincial health officer, Dr. Martin Lavoie.

Niagara group aims to bridge the gap in mental health services for young Black men

Since 2019, Future Black Female (FBF) has been helping young Black women and girls gain access to mental health services, financial literacy and career strategies.

Windsor symphony director who traveled for stem cell transplant lauds new Windsor hospital program

The longtime music director of the Windsor Symphony Orchestra says his recent battle with a recurrence of non-Hodgkin lymphoma would've been easier if he could've received a stem-cell transplant in Windsor instead of London — something that is now possible for some patients thanks to a new program at the Windsor Regional Hospital. 

Viscount Bennett redevelopment joins wave of legal resistance over Calgary rezoning

More than a dozen residents of Richmond-Knob Hill have filed an appeal for judicial review against the City of Calgary's decision to approve the redevelopment of the former Viscount Bennet school site.

Poilievre says he lost Ottawa riding for being 'honest' about plan to cut public sector jobs

Conservative Party Leader Pierre Poilievre says he lost his riding of Carleton in the federal election due to an "aggressive" campaign by public sector unions after he was honest about wanting to cut federal worker jobs.

First planes carrying wildfire evacuees from northwestern Ontario head to Toronto area

Phillip Campbell has been closely watching the skies to see which way the wind blows — and whether it will keep nearby wildfires at bay.

2nd teen charged with 1st-degree murder in stabbing death of teen boy police

A second teenage boy has been charged in connection with the fatal stabbing of Abdoul Aziz Sarr, Toronto police said.

Video of P.E.I. dad painting over his growing son's dinosaur mural goes viral

The Jurassic period is definitely over for a 10-year-old boy on Prince Edward Island, and a video representation of that passage of time has amassed millions of views on social media.

After a rocky post-pandemic recovery, Toronto's Fringe Fest finds stable ground

It's been a roller-coaster five years for the Toronto Fringe Festival.

New exhibit in St. Thomas explores legacy of global icon — Jumbo the elephant

He was once known as the most famous elephant in the world and more than a century after his death, Jumbo the elephant's legacy still lives on. 

Carney's plan to cut tens of billions in spending is tough but doable, experts say

The federal government has started its comprehensive review of government spending, but what will it mean for Canada's public service, what balance will it have to strike and can the Liberals really cut so much?

N.S. alcohol enforcer calls for 50-day liquor licence suspension in Route 19 Brewing death

Nova Scotia's alcohol enforcer and a craft brewery and restaurant in Inverness, Cape Breton, are far apart when it comes to the suggested penalty for contravening a liquor licensing regulation on the night the company's brewmaster died.

He's lived in the U.S. since he was 3. At 46, he was denied re-entry at the border

When Christopher Landry was making his annual trip to New Brunswick from New Hampshire, he didn't think he would run into any problems.

Parking Slot | Free Parking GamePlay Parking Slot, the best online 3D car driving and parking game.Adv.
Slope Ball Run - Play OnlineSlope Game takes you on an exciting journey of a ball on special paths.Adv.
Nunavut Premier extends condolences after 3 deaths in Pond Inlet

Nunavut Premier P.J. Akeeagok is sharing his sympathies with the community of Pond Inlet, Nunavut, after three recent deaths. 

Caution advised as hungry bears look for buffaloberries in Bow Valley

Bear in mind that berry season has begun, experts say.

Alberta's transgender ban in women's sports won't apply to out-of-province athletes

Alberta is rolling out new regulations this fall banning transgender athletes from playing women's sports, but the province will still welcome out-of-province transgender competitors.

Fire chief cautions onlookers after crews impeded from house fire scene in Stratford

The chief of the Cross Roads Fire Department is reminding Islanders to be aware around fire scenes after firefighters were impeded from getting to a house fire on Friday in Stratford.

Fogo Island ferry protest over, but more work to be done say organizers

Protesters aboard the Astron W ferry have finally disembarked as of 7:00 a.m. this morning. 

Inquest to examine 5 deaths during blastomycosis outbreak in First Nation in northern Ontario

A coroner's inquest was announced Friday into five deaths during an outbreak of blastomycosis in Constance Lake First Nation, just west of Hearst in northeastern Ontario. 

Antigonish craft brewery testing health warning labels on beer cans

Most people are familiar with the warning labels on cigarette packages. But a project in Antigonish, N.S., is piloting how similar labels could work for alcoholic beverages.

65 years after his groundbreaking electoral victory, the legacy of Louis J. Robichaud lives on

Sixty-five years ago, New Brunswick elected an Acadian as premier for the first time, spurring the province to begin bridging the gap between its French and English populations.

LaSalle College fined $30M for over-enrolling students in English-language programs

Montreal's LaSalle College says it's facing an existential threat after it was handed down back-to-back fines totalling almost $30 million from the Quebec government for enrolling too many students in its English-language programs.

Artist slams Manitoba government's 'completely tone deaf' donation request for 'buy local' gift bags

A Winnipeg artist said she's disappointed by the Manitoba government's request for a local small business owner to donate their products for an upcoming "buy local" themed event.

'As a farmer, it's depressing': Southwest Sask. sees less than 25% of normal rainfall in June

Several farmers in southwestern Saskatchewan say their crops are withering and dying before their eyes.

Peace River, Alta., uses secret shopper to get ideas to boost local tourism

A secret shopper, hired by the Town of Peace River, highlighted better wayfinding and making the downtown more of a hangout as some ways to boost tourism in the community.

© 2008 - 2025 Webjosh  |  News Archive  |  Privacy Policy  |  Contact Us