If Alberta and Canada had even mediocre management, the Heritage Trust Fund would total one trillion dollars, like Norway's. All that money was wasted by unscientific government imbeciles.
My/our turnaround of the Alberta oil sands contributed more that a trillion dollars to our economy, but all that money has been squandered by idiot governments.
MY COMMENTS - Sent to all Alberta MLA’s
When I was ~40, I initiated most of the key factors that caused the turnaround of the then-moribund Alberta oil sands industry, including:
New Tax Terms - a 100% CCA Rate on major investments
New Royalty Terms - industry-side terms that encouraged development
Reduced unit operating costs from ~$18 to ~$12 per barrel
A Strategic Plan that was implemented across the oil sands industry
The results included:
~$250 billion new capital investment in the Alberta oil sands (~$500 million today)
500,000 new high-paying jobs across Canada
Canada because the most prosperous economy in the G8 for ~15 years
Canada became the #4 oil producer in the world and the largest supplier of energy to the USA
While Canada is still #4 oil producer, all my above growth initiatives were destroyed by idiot governments of the left and the right:
My tax terms were cancelled by the Libs and NDP in federal committee
the Stelmach government destroyed my growth Royalty terms
The two great Scientific Frauds of our Age, the Climate and Covid Scams, have been foolishly embraced by left and right governments, trillions of dollars have been squandered, and many millions of lives have been wasted.
Proof:THE CULL TRILOGY – by Allan Malcolm MacRae, Calgary
"The ability to correctly predict is the best objective measure of scientific and technical competence."
1. MURDER OF MULTITUDES
Covid & Climate Chronicles – The Big Cull
Alberta politicians waste trillions, but have no idea how to create major wealth. They don’t even understand how our current wealth was created.
IF Alberta wants to increase our prosperity, the authorities should talk with the only living person who has done it before.
Regards, Allan MacRae, B.A.Sc., M.Eng., Calgary
https://energy-experts-international.com/
Alberta Targets $250-Billion Fund to Wean Itself Off Oil Revenue
Plans to boost its wealth fund roughly tenfold by 2050
January 30, 2025 EnergyNow Media
https://energynow.ca/2025/01/alberta-targets-250-billion-fund-to-wean-itself-off-oil-revenue/
Bloomberg News
Canada’s top oil-producing province of Alberta plans to boost its wealth fund roughly tenfold to $250 billion by 2050 in a bid to wean itself off volatile natural resources revenue.
The government formed a corporation to oversee the $24.3 billion Heritage Savings Trust Fund and seek opportunities to raise returns to nine per cent annually from about seven per cent now, it announced Wednesday. It also passed legislation that requires the fund to reinvest its returns rather than distribute them to the province.
Provincial pension fund manager Alberta Investment Management Corp. will continue investing the $25 billion currently in the Heritage Fund, and the new Heritage Fund Opportunities Corp. will set guidelines for managing that money.
The new entity will also directly oversee a $2 billion injection to the Heritage Fund this year, focusing on partnerships with other global investors and investing in “areas that matter to Albertans, such as technology, energy and infrastructure,” a news release said.
The goal is to reduce Alberta’s reliance on resource revenue, which makes the province “susceptible to the highs and lows of global energy markets, which can change rapidly and unpredictably,” the government said.
Alberta projects it will collect $20.3 billion in non-renewable resource revenue in the current budget year — largely driven by higher royalties for oil sands bitumen — which accounts for more than a quarter of its total inflows.
“When the royalties dry up or start to become significantly smaller, the only tool a government has is to seek more revenue through the tax base,” Alberta Finance Minister Nate Horner said. “By being diligent and allowing this to grow, by the time we get to $250 billion, we’ll have the ability to use this in an annual way to help offset revenue needs within government.”
Horner didn’t share the size or budget for the new Heritage Fund corporation, beyond saying it will be “quite small” in comparison with Aimco. Joe Lougheed, a partner at the Dentons law firm and the son of former Alberta Premier Peter Lougheed, will chair the new entity.
The projection for nine per cent annual returns would outperform the 6.3 per cent annualized return generated by Norway’s sovereign wealth fund since 1998 and the 6.8 per cent annualized return of the Abu Dhabi Investment Authority over the past 30 years.
The projection would also beat Aimco’s 6.1 per cent average annual return in the five years through 2023. The Ontario Teachers’ Pension Plan, which manages about $256 billion in assets, on par with Alberta’s goal for the Heritage Fund, averaged 7.2 per cent in the five years through 2023.
Horner said Alberta’s new manager will be able to outperform its larger rivals because of its smaller size, adding that the nine per cent target is “relatively conservative.”
“Our size allows us to be quite nimble, especially in the early days, and seek out those great deals,” Horner said.
Why Energy is So Important to Canada – Understanding Alberta’s Outsized Contribution to Confederation – Fraser Institute
November 17, 2024 EnergyNow Media
By Tegan Hill, Nathaniel Li, Spencer Gudewill, and Milagros Palacios
When Alberta is economically strong, all Canadians benefit, because money is redistributed to other parts of Canada.
In 2022, despite restrictive federal policies, Alberta continued to contribute disproportionately to the federation.
Alberta’s 5.0% real GDP growth rate was the fastest in Canada in 2022, accounting for 17.9% of Canada’s real GDP growth, despite being home to 11.6% of the population.
In 2022, 56,245 Canadian residents relocated to Alberta, representing more than 75% of total net in-migration within Canada.
Alberta reported the fastest private sector employment growth among the provinces (7.8%) in 2022, accounting for 19.2% of private sector jobs created in Canada.
Per private sector worker, Alberta attracted $36,412 of business investment, more than double the national average (excluding Alberta).
From 2007 to 2022, Alberta’s net contribution to the federal finances totalled $244.6 billion—more than five times as much as BC’s ($46.9 billion) or Ontario’s ($41.9 billion). In 2022, Alberta contributed $14.2 billion more to federal revenues than it received back in federal spending.
If Alberta were an “average contributor” based on the other provinces, rather than a large net contributor, the federal government would have had a fiscal shortfall of $16.9 billion in 2022. For perspective, to cover this net revenue loss, the federal GST rate would need to increase from 5.0% to 7.2%.
Put simply, without Alberta’s oversized contribution to the federation, Canada would be worse off. To benefit all Canadians, the federal government should focus on supportive policies, not restrictive ones.