Alberta set to post $2.3- to $3-billion deficit on slumping oil prices

[Joe Shlabotnik]

http://www.theglobeandmail.com/news/national/alberta-set-to-post-23--to-3-billion-deficit-on-slumping-oil-prices/article4509683/

"Alberta is on track to post a deficit between $2.3-billion and $3-billion if oil prices do not improve, and all government departments have been ordered to review spending in light of the shortfall."

"Government revenue fell by $400-million, or about 4 per cent, Mr. Horner said. He blamed the shaky world economy, soft bitumen and conventional oil royalties due to weak prices, and low land lease sales. Meanwhile, expenses climbed by $5-million overall in the quarter, largely due to disaster funding, he said."

"Earlier this month, the Fraser Institute, a right-wing public policy think-tank, issued a report titled “Alberta’s 2012 Fiscal Time Bomb,” which projected a higher-than-expected deficit due to the government’s “unrealistic resource revenue” and economic growth forecasts."

"Alberta’s budget depends largely on the cash the government rakes in from bitumen and oil royalties. However, its price estimate, along with estimates across the industry, were stronger than actual prices in the quarter."

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So, the far-right are calling for austerity in the province that is 'blessed' with the resources that are supposed to be powering the economy for the next 100 years.

And, at the peril of the manufacturing industry in the rest of Canada, destruction of the environment and shortfall of funding for just about everything else, the Tar Sands have enjoyed billions in tax breaks, and incentives. The Harper Government™ (official party of the oil industry) has insisted that Canadians put all of their investment eggs in the volatile resource extraction basket and trust that global economy will keep consuming its filthy, overpriced crack.

[demosincebirth]

1. Slumping Oil Prices? I guess they haven't checked the prices at the pump. Or the price of

a barrel of oil...ninety four dollars.

[DJ13]

2. Same thing I was thinking

[Joe Shlabotnik]

3. the price at the pump is always rigged.

When the price of of crude is less than $100/barrel the tar sands profit margin is squeezed. When the price of a barrel of oil drops below $85, then the operations begin shutting down because no amount of federal or provincial subsidies can make it profitable. Alberta's projections have been overly optimistic to dupe investors and taxpayers.

[laundry_queen]

4. Also natural gas is pretty low right now too. nt