Biggest Supplier of U.S. Foreign Oil Elects Democratic Socialist Government
Last night, it became official: Alberta, the largest producer of oil in Canada, ended the 40 year reign of the Progressive Conservatives in favor of the New Democratic Party (NDP), a democratic socialist party.
This could mean big changes in the energy sector, from oil patch to gas pump.
The Alberta NDP, under the leadership of new premier Rachel Notley, campaigned on a promise to review energy royalties. With the previous government known for charging royalties far below average, it’s likely a review will find an increase favorable for Albertans. And, as is the case, customers will be footing the bill and the energy lobby has already come out swinging.
From CBC:
Altacorp Capital, a Calgary investment bank that is partly owned by the provincial government, expressed a similar view in a report earlier this week, before the election.
The report pointed out that energy investors, especially those based outside of Canada, have lots of options when it comes to investing.
“Unfortunately, with Alberta possibly heading for a third royalty change in eight years now, we believe global investors will add a degree of caution with the province’s ability to maintain a stable investable environment.”
Other platform promises including raising corporate income tax rates from 10 to 12 percent, increasing the minimum wage to $15 per hour by 2018, more tax brackets and higher taxes for making over $125,000 per year, and a ban on corporate and union political donations.
Canada is the largest outside supplier of petroleum to the United States at 3.39 million barrels per day, 37 percent of gross imports, more than all OPEC countries combined in 2014.
[Image source: Rachel Notley Facebook Page]
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Wow. Where did the Liberals go in Western Cananda? I'm more familiar with Ontario politics, where it seems they're (depressingly) strong.
What next? Bernie Sanders getting elected governor of Texas? Jacking up the severance tax that mostly gets paid by Americans and raising the corporate income tax in recognition that few of the corporations are homegrown, is smart. Or, they could do like Louisiana, which is about to gut LSU, instead.
@an innocent man "wait I though Canada was already pinko" That is a common misconception still... If you look at Prime Minister Harper's policies (tax reduction, foreign policy etc.) you can't really call Canada very much left of Obama. (Harper has been in power since 2006, so has made a lot of changes -- whether they are good or not is a matter of opinion -- let's put it this way, G.W. Bush and Harper were "good buddies"..)
Even though I'm very much to right generally in economics and handouts I do believe the minimum wage should be approaching what is a liveable wage. This will strengthen an economy by allowing for better productivity gains rather than relying on cheap labour. The people who complain are the ones who are concerned about paying an additional 50c for a Big Mac Meal. But, yet the person serving them will have more money to spend strengthening their jobs. This will compress wages slightly and generate less disparity. In the big schemes of things Canada does offer a better and more promising future for their young than what is offered in many countries. Many think a higher wage will make it more expensive to live. The burden on higher paid workers will be marginal compared to the additional economic activity it will generate. So, a higher paid workers wage might only rise a buck or two and hour to compensate. Then your currency re-values to take into account these changes. It will not make any country less competitive. In the end it will be a win for all.