High Oil Prices Offset US Tarrifs in Budget and Exports For Canada

[Economy 53,097]

https://www.cbc.ca/news/politics/canada-oil-prices-trump-iran-trade-war-tariffs-9.7341298

 

Canadas oil producing Provinces are feeling a big financial windfall from oil revenue especially Alberta that swing from an expected $9B deficit to a $2B surplus (thats a lot for a Province of 5 million people). Newfoundlands deficit is also expected to be mostly eliminated

 

At the Federal Level the deficit this year so far has run far lower than last year although no official revisions in outlook for entire year were made and it was never confirmed that oil was the main reason for reduced deficit but given size of industry the windfall is likely at least a few billion

 

On exports Canada has a been running trade surpluses consistently again which helps when your biggest export surges in value.

 

While Trump is fighting Canada on tarrifs actions he has done elsewhere is providing a windfall to largely offset his direct agressions

 

That said this is strictly from an export and Government revenue perspective. Canadian Consumers still suffer at the pump for this and economically oil prices this high are still considered a net negative for the economy at least in short term as it hurts industrial and consumer sectors while Canadas energy sector (which unlike US Shale run on very long investment cycles) is not likely to significantly boost investmentments in the short term meaning it wont actually create much in terms of jobs while the sectors negatively impacted could shed some as a result

Edited 10 hours ago by Economy

[SavetheEarthNow 290]

The Canadian oil industry has been bringing in record profits year after year, each year they've been almost doubling the previous year's profits. This is on top of the US oil industry also bringing record profits for past several years. And even with those record profits, provinces like Alberta have been recording massive deficits, not surpluses. The reason for the deficits is mainly in part due to having to pay farmers massive crop insurance claims for the loss of their crops due to climate change. Saskatchewan for instance would previously have had a $2B surplus a year or two ago, but instead, it was a massive deficit due to crop insurance claims having to be paid to farmers for loss of crops due to extreme weather. Alberta farmers have also recently declared an agricultural emergency/disaster over the flooding of their farmland, that's going to require massive payouts from the provincial government. 

People need to stop acting like the oil industry is in such dire straits, it's not, it's the farming and food industry struggling due to climate change induced by the oil industry, which is driving up prices. And no matter how much money the oil industry makes, it's not going to lower prices or cost of living. 

 

Also, the whole Alberta surplus thing is a total lie. They're leaving out how Alberta has almost $100B in debt. Just like Saskatchewan has an almost $40B debt. They never factor in provincial debt when they talk about alleged "surpluses". 

Edited 6 hours ago by SavetheEarthNow

[Economy 53,097]

6 hours ago, SavetheEarthNow said:

The Canadian oil industry has been bringing in record profits year after year, each year they've been almost doubling the previous year's profits. This is on top of the US oil industry also bringing record profits for past several years. And even with those record profits, provinces like Alberta have been recording massive deficits, not surpluses. The reason for the deficits is mainly in part due to having to pay farmers massive crop insurance claims for the loss of their crops due to climate change. Saskatchewan for instance would previously have had a $2B surplus a year or two ago, but instead, it was a massive deficit due to crop insurance claims having to be paid to farmers for loss of crops due to extreme weather. Alberta farmers have also recently declared an agricultural emergency/disaster over the flooding of their farmland, that's going to require massive payouts from the provincial government. 

People need to stop acting like the oil industry is in such dire straits, it's not, it's the farming and food industry struggling due to climate change induced by the oil industry, which is driving up prices. And no matter how much money the oil industry makes, it's not going to lower prices or cost of living. 

 

Also, the whole Alberta surplus thing is a total lie. They're leaving out how Alberta has almost $100B in debt. Just like Saskatchewan has an almost $40B debt. They never factor in provincial debt when they talk about alleged "surpluses". 

Do you even know what a surplus is? You can have accumolated debt and have a budget surplus for set year