Alberta Surprises with $8.3B Surplus from Higher Resource Royalties

Massive oil and gas revenues from strong global crude prices and record production led Alberta to end the 2024-25 fiscal year with an unexpected $8.3-billion surplus. The surplus, announced in Finance Minister Nate Horner’s year-end fiscal update, was $8-billion higher than predicted and $4-billion more than the previous year. Non-renewable resource revenues were $4.7-billion above forecast.

The province's fossil fuel sector benefited from strong oil prices and the expanded Trans Mountain pipeline system, boosting the price of Alberta’s heavy oil. A lower exchange rate and record high oil production also contributed to the surplus.

Alberta saw a nine-year high in sector spending for oil, gas, hydrogen, geothermal, helium, and lithium resources in 2024. Premier Mark Carney's push for Canada to become an energy superpower received support from the unexpected natural resource payout.

Alberta's revenue streams are subject to significant volatility, especially non-renewable resource royalties. The province ended the fiscal year with a $8.3-billion surplus, a significant increase from the projected $400-million surplus.

In 2024-25, Alberta's total revenues reached $82.5-billion, with strong corporate profits in the oil and gas sector contributing to the windfall. Real GDP rose an estimated 2.7 per cent, with the energy sector leading Alberta's growth in business activity.