Alberta’s finances are swinging back into the black after war in the Middle East sent global energy prices surging.
The province’s latest fiscal update for the 2026 Alberta budget predicts a $2-billion surplus — a huge turnaround from the $9.4-billion deficit originally expected for the fiscal year.
It’s the latest reversal of fortune for the oil-rich province perennially tied to international energy markets.
Six months ago, the province anticipated West Texas Intermediate – the North American benchmark oil price — would average US$60.50 a barrel this year.
Two days after the province introduced its February budget, the U.S.-Iran conflict began, choking off oil tanker traffic through the Strait of Hormuz, a vital shipping lane at the mouth of the Persian Gulf.
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Since April, the province estimates the price of WTI has averaged just above US$88 per barrel.
With every dollar increase in the average WTI price, Alberta’s treasury stands to gain $680 million.
Finance Minister Jason Nixon celebrated the quarterly windfall as good news, but warned the forecast could just as quickly take another turn.
“Energy prices can change quickly, trade uncertainty is real, and every dollar spent on debt is a dollar taken away from classrooms, hospitals and families,” he said.
“We will not commit temporary revenues to permanent expenses.”
But the same prices that are padding the government’s coffers are also driving up the cost of living.
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In June, Premier Danielle Smith announced $100 fuel tax rebate cheques for most Albertans, instead of the province reducing its tax on gasoline at the pumps.
Nixon didn’t commit to another round, but said cabinet is mulling its options to try to find relief for Albertans.
He added that amid the ongoing trade war between Canada and the United States, counter-tariffs could drive even more price increases.
“We’re watching inflation,” he said.
For the latest budget numbers to pan out, WTI would have to average US$73.50 per barrel over twelve months, or US$65 for the remainder of the year, which ends next March.
The government’s year-end results for 2025-26 have been delayed, but officials are anticipating the latest revenue bump will more than erase that year’s $4.1-billion projected deficit.
Nixon said the United Conservative government’s massive health-care restructuring has created an accounting challenge, with newly-created government organizations needing time to match up with the provincial budget.
But, he said, he’s confident the UCP will also report a surplus for that year.
The blame Mark Carney group is at it. Lefties? The staggering amount of money the UCP has wasted is incredible. Billions of dollars are often squandered away on boondoogles. What lefties? It’s only because of a war in the Middle East, instigated by Donald Trump that oil prices are up. Handouts? The UCP does that to their corporate cronies. Alberta’s oil? Those days are long gone, thanks to Ralph Klein. How do these people get away with using foul language?
Alberta oil belongs to ALBERTA
The oil in Alberta will always be CANADA’S oil and Danielle Smith knows it. That’s why she got on her knees and sucked Carney’s c0ck in order to get the new pipeline approved by Ottawa. Too funny 😆😆😆😆😆🇨🇦🇨🇦🇨🇦🇨🇦🇨🇦🖕🖕🖕🖕🖕😊😊😊😊😊
“Albertan
August 28, 2026 at 12:20 pm
Nice to see no lefty rejects posting on this one. They just waiting for the next handout and I’m sure carney already has it spent in the east. Can’t wait to be free of this liberal circus.”
Awww the little delusional separatist bltch didn’t want to hear the truth from a REAL Canadian. To funny 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
All of that oil money going straight to The Liberals in Ottawa. The profits from CANADA’S oil is going to get distributed to ALL Canadians
Nice to see no lefty rejects posting on this one. They just waiting for the next handout and I’m sure carney already has it spent in the east. Can’t wait to be free of this liberal circus.
Ok, que the Leftist type folk, spend, spend, spend, spend……
Say, ain’t that thar, that Marcus Carney fella ‘sniffin’ and lurking around the Alberta treasure house again. Ma, hand me down my varmint gun.
Should have been 20 billion but thanks to the liberal policy’s over the last 11 plus years it isn’t. Thank a elbow kool aid drinker.
Next down turn cycle will soon come and begging will start.
Livin the Alberta life, $100000 pimped out truck, beautiful girl next to me rubbing my crotch
Don’t worry canuck peasants, we’ll throw you some bread crumbs while we eat steak
Lard Ford can tell us how big his deficit is, or Quebec. Canada is an economic basket case except for Alberta and Saskatchewan.
Sour grapes shown from Eastern and Elbows Up Canadians as they live hand to mouth and worship the altar of Carney.
They will just give it to the oil companies.
Good news! Maybe they can now return the extra taxes that the property owners had to pay in Calgary. While on it they could also reinstate the senior benefits taken away. All these just to “pay off” and keep the ATA and the ATA members happy and “quiet”.
While high O&G prices do effect consumer pricing, it’s a drop in the bucket when you consider the ever-escalating carbon, plastic and packaging taxes on EVERYTHING!