By Nia Williams
CALGARY, Alberta, April 7 (Reuters) - Alberta expects oil
and gas royalty revenue to plunge almost 90 percent next year to
around C$1 billion ($761.73 million) from 2014 levels, the
Canadian oil-producing province's Premier Rachel Notley said on
Thursday.
"This is the royalty roller coaster we've all been talking
about," Notley said in a televised address ahead of the release
of the provincial budget next week.
"There's no doubt that the oil price collapse is causing
serious economic pain and anxiety," she added.
Alberta depends on oil and gas royalties for one fifth of
provincial revenues and the prolonged global oil price shock is
the most serious in a generation, Notley said.
Two years ago the province collected almost C$10 billion
from royalties but the government forecasts that will tumble by
nearly 90 percent next year.
Since June 2014 the price of crude CLc1 has plunged by
around 65 percent to hover just below $40 a barrel, prompting
oil producers in Alberta to cut tens of thousands of jobs and
slash capital investment by around C$50 billion.
The province is the No. 1 exporter of crude to the United
States and the slump in its dominant industry has caused
financial difficulties for Notley's left-leaning NDP government,
elected last May after 44 years of Conservative rule.
The government expects the budget deficit in the 2016/17
fiscal year will be more than C$10 billion as a result of lower
royalties and reduced tax revenue. Last year Alberta posted a
C$1.1 billion surplus.
Notley said next week's budget will contain more detail on
the government's five-year plans to spend C$34 billion on
infrastructure investments and diversify the province's energy
markets and industry.
($1 = 1.3128 Canadian dollars)
(Editing by James Dalgleish)