Oil production in our province is at a record high but, as Albertans have learned time and time again, we have absolutely no control over the international price of oil that makes or breaks our local economy.
Forecasts for oil prices are not encouraging for 2026. The U.S. Energy Information Administration has projected that the price of West Texas Intermediate oil could average around $50 to $52 per barrel and, with a glut of oil on the international market, Goldman Sachs expects WTI to average $53 per barrel in 2026.
This is trouble for the Government of Alberta, which relies heavily on revenues from oil and gas royalties to fund the daily operations of public services like heath care and education. The Alberta government’s 2025 budget projected WTI at $68 per barrel but as of the second quarter update in November the average price was $61.50 per barrel. Each $1 change in the price of WTI has an estimated $750-million impact on provincial government revenue.
