• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days e-truck insanity
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 8 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

Alberta Cuts Budget Deficit Despite Pipeline Setbacks

A day after a federal appeals court in Canada put the brakes on Kinder Morgan’s troubled pipeline project that would relieve serious pipeline constraints out of oil-rich Alberta, the province lowered its projected budget deficit for 2018-2019 as revenue streams increase on the back of higher oil prices, according to Reuters.

The budget deficit for fiscal 2018-2019, previously estimated to come in at C$8.8 billion, has now been reduced to C$7.8 billion.

While lower than anticipated, the budget deficit is still severe. In July, the province had reported its budget deficit for fiscal year 2017-2018 at C$6.04 billion. That figure was one of the highest deficits in Alberta’s history. The budget deficit for FY 2016-2017 was even more painful at $C10.8 billion.

Today’s rosier fiscal outlook is attributed to the higher oil prices in the last year or so, and comes as particularly welcomed news after yesterday’s ruling that rescinded the approval of the Trans Mountain pipeline largely seen as a huge setback for the country that has the world’s third largest oil reserves.

The prospects for the pipeline are now uncertain. The Canadian government can either go back and consult with its indigenous population—a process that would require a rather lengthy review, or it could appeal to the Supreme Court—a process that is expected to be equally as slow.

Canada’s pipeline troubles are not limited to Kinder Morgan’s Trans Mountain project, with the Keystone XL currently stalled with no progress in sight.

Canada’s heavy oil benchmark, Western Canadian Select (WCS) continues to trade at steep discounts to the United States’ WTI, with the disparity hitting over $30 per barrel—the biggest discount since 2013. A severe shortage of pipeline capacity is mainly to blame for the sharp discount as Canadian production shows no sign of slowing despite its insufficient ability to get it out of the country to market.

By Julianne Geiger for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News