Alberta projects $2B surplus after oil prices surge
Posted August 27, 2026 11:53 am.
Alberta’s finances have swung sharply out of the red, with the province now expecting a $2 billion surplus for 2026–27 instead of the $9.4 billion deficit forecasted in February.
The turnaround, announced on Thursday, comes after months of surging oil prices largely stemming from the U.S. war with Iran.
“Alberta has been given an opportunity and Alberta’s government will not waste it,” says finance minister Jason Nixon.
The first‑quarter fiscal update shows an $11.4 billion improvement, including a $9.7 billion boost in non‑renewable resource revenue as West Texas Intermediate (WTI) crude averages US$73.50 per barrel. Total revenue for 2026–27 is now projected at $86.3 billion, up $11.7 billion from Budget 2026.
The province also says the Heritage Savings Trust Fund is on track to reach $32.1 billion this year and remains positioned to meet the government’s $35 billion target by 2027. The growth is being supported by strong energy activity, rising manufacturing and agriculture exports, major project decisions, and steady consumer spending.
Alberta now expects real GDP to rise 2.3 per cent in 2026 and 2.5 per cent in 2027.
Despite the improved outlook, the finance minister says the volatile oil markets and global trade uncertainty mean the province needs to keep a tight grip on spending.
“Our path forward will be built on protecting the services Albertans count on, keeping spending under control, and managing taxpayer dollars with discipline,” Nixon says.
In February, the province predicted $74.6 billion in revenue and $83.9 billion in spending for 2026–27, a shortfall that would have been Alberta’s largest since the pandemic.
