The oilsands are expected to rebound and help improve Alberta’s economy.
That coming from the provincial government who released their 2017 budget, Thursday afternoon.
Minister of Energy Margaret McCuaig-Boyd tells Mix News they’re expecting more royalties coming from the oilsands.
“Due to completion of some projects but also just increased production.”
The government is predicting oil prices to hover around $55 US a barrel.
McCuaig-Boyd notes it will be some time before prices rise back up to the $80-$90 range.
“Companies have been very creative in using technology and have driven their costs down quite a bit. Lowering their costs with a lower price per barrel, there still able to make some money.”
She notes the Kinder Morgan’s Trans Mountain expansion is expected to see shovels hit the ground sometime this year. She was unaware of when Enbridge’s Line 3 was expected to start.
Alberta is also expected to have the biggest economic growth. The price of oil playing a big part, expected to rise by nearly $7 on average per barrel, compared to last year.
The province is also anticipating a significant increase in the construction and building services with the rebuild happening in Fort McMurray.
“We still have the lowest taxes in Canada and that makes things affordable, not only for families but for investors and for industry,” added McCuaig-Boyd.
Besides the oilsands impact on the sector, the province will be capping electricity rates, on June 1, at 6.8 cents moving away from our dependence on coal.