Alberta's provincial budget is highly dependent on oil prices, with a $5 change in West Texas Intermediate Oil prices affecting revenue by approximately $3.75 billion; this creates a boom-and-bust cycle where high oil prices generate surpluses and low prices create deficits, making the province's fiscal management vulnerable to external market fluctuations.
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Danielle Smith The LIARAdded:
She wants to put nine questions to a referendum this October. Among them, proposals to restrict social services from some immigrants. To sum up our budget challenge, low oil prices combined with an out-of-control federal immigration policies are together driving unsustainable budget deficits.
>> Well, how many immigrants came to Alberta in 2025? International immigration accounted for, let's round it up to 20,000 people. The average price of a knee replacement is somewhere between 20,000 and 38,000 per knee. All of them came to Alberta to get a free knee replacement operation. And all of them got the most expensive one, the $38,000 knee replacement. Those dirty immigrants that Ottawa let in cost Alberta $760 million based on the 2026-27 Alberta budget projections, a $5 change in the average annual price of West Texas Intermediate Oil affects the province's revenue by approximately $3.75 billion.
From 2022 when oil peaked at $110 a barrel to when Danielle Smith made her announcement, oil prices had dropped $50 a barrel. If the price of oil drops $5, the Alberta government collects $3.75 billion in revenue. And they don't have many other sources of revenue because there's no sales tax in Alberta. And I used an extreme example. Of course, Ottawa didn't send 20,000 immigrants to Alberta to all have knee replacements. Most immigrants didn't have knee replacements. Most immigrants didn't go to the hospital. The reason that Alberta has a boom and bust budget projection all the time is because when oil prices are up, they have huge surpluses. And when oil prices go down, they have huge deficits. And now that the United States has started dropping bombs on Iran and oil prices are over $100 a barrel, Alberta will have a huge surplus. And she'll go on TV and say, "Thanks to the fiscally conservative and prudent management, despite all of Ottawa's efforts to destroy the province, we've managed to have a surplus this year."
Danielle Smith isn't lying to you because she's stupid. Danielle Smith is lying to you because she thinks you're stupid.
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