Plunging world oil prices are a mixed blessing for Albertans
With world oil prices plunging to four-year lows — combined with the recent elimination of the federal carbon price — many Alberta drivers are saving some money when they pull up to the pump.
Mani Singh of Edmonton told Global News that he used to spend about $500 per month on gas, but now he's only spending about $300 per month.
'I'm saving a lot of money,' said Singh, who on Friday was paying 124.9 for a litre of gas at his local station.
In Calgary, after selling for as low and 109.9 per litre on Wednesday, the price had jumped back up over 130. per litre by Friday.
View image in full screen
Mani Singh of Edmonton said he used to spend about $500. per month on gas, but he's now spending about $300. per month. Global News
'I think for Albertans as consumers going into the driving season, prices will be pretty favourable,' said Richard Masson, an executive fellow at the University of Calgary's School of Public Policy.
Story continues below advertisement
'With the reduction from the carbon tax of 18 cents and now lower oil prices, that's all translating into lower prices at the pumps, which will help Albertans. Especially those who decided to stay home and holiday this year,' added Masson.
1:52
Alberta responds to OPEC production increase
Masson said there are two primary reasons why oil prices are plunging.
Get breaking National news
For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy
'Prices have weakened over the last few weeks, primarily driven by the tariff threat that President Trump has around the world and the likelihood that will lead to a recession which lowers oil demand,' said Masson.
'On top of that, Saudi Arabia has been working to bring back 2 million barrels a day of OPEC plus cuts and they decided to do it quicker than anybody had expected.'
View image in full screen
Oil industry experts say, while the plunging price of oil may be good for drivers, it threatens to put a huge hole in the government of Alberta's budget. THE CANADIAN PRESS/Larry MacDougal
The uncertainty in the world oil markets has pushed the price below $58 US per barrel this week.
Story continues below advertisement
While the low prices may be a blessing for drivers, if the price continues at that level it will create a huge problem for the provincial budget, which was originally forecast to include a $5.2-billion deficit on the expectation that oil prices would average about $68 per barrel.
'Each $1 change is a $750 million hit to the Alberta budget — so a $10 change over the course of the year is $7.5 billion,' said Masson.
The pain may be lessened somewhat because the price difference between the price of west Texas intermediate (the benchmark grade for global oil pricing) and western Canada select (the price heavier Canadian crude) has narrowed in recent months — which should help reduce the size of the deficit.
But Masson said if these low world oil prices continue, 'it's going to put a lot of pressure on provincial spending.'
The office of the Alberta finance minister says the provincial government will provide a budget update in August.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Cision Canada
an hour ago
- Cision Canada
Nuveen Australian Real Estate Debt Strategy Reaches A$650 Million with CPP Investments Commitment
SYDNEY, /CNW/ - Nuveen, one of the largest asset managers globally with over US$1.3 trillion AUM*, has reached second close of its commingled Australian commercial real estate debt strategy with commitments of over A$650 million. Canada Pension Plan Investment Board (CPP Investments), through its subsidiary CPPIB Credit Investments Inc., invested A$300 million, joining Teachers Insurance and Annuity Association of America (TIAA) and Temasek as strategic partners of Nuveen for this strategy. Total AUM are expected to exceed A$1 billion including capital approved for co-investments. The strategy is already more than 40% deployed via committed loan investments focusing on institutional senior and junior loans secured by prime real estate in Australia. Preferred sectors for the strategy are industrial / logistics and residential, with a selective approach to retail, office and alternatives across major cities in Australia. The strategy leverages both Nuveen Real Estate's global debt platform, which currently has over 55 dedicated specialists, and the team of more than 60 at Nuveen Real Estate in Asia. The strategy is led by Dugald Marr, Nuveen's Head of Debt Australia and New Zealand, and the support of an experienced team with a long track record of originating and structuring high-quality loan investments in this market. Investments are also aligned to Nuveen Real Estate's comprehensive responsible investment processes and ESG factor analysis. This includes waste reduction and energy consumption, climate risk analysis and social aspects with the ability to structure Green Loans or Sustainable Linked Loans where applicable to incentivise ESG targets on behalf of clients. The investment comes at a time when Australian commercial real estate debt offers the potential for a compelling blend of stability, attractive yields, and strong collateral protection, all of which are increasingly important to investors concerned about global volatility. Australia's mature market, supported by robust economic foundations, strict regulatory requirements for banks and the need for more alternative capital sources provides a good foundation for long-term investment in this space. The strategy will continue to focus on repeat institutional borrowers, conservative lending parameters and prime assets in sectors that benefit most from Australia's high population growth and limited supply. Andrew Kleinig, Head of Australia and the Global Client Group for South East Asia at Nuveen, said: "This is another milestone for the strategy. With CPP Investments' commitment, we will continue our focus on strategic, in-depth partnerships with the highest calibre of investors. We are excited to work with a like-minded partner who also shares a high conviction on the asset class. CPP Investments has provided significant value-add as a strategic investor, ensuring long-term success and growth of the partnership. It showcases Nuveen's pedigree in real estate investment and our ability to bring regionally tailored solutions across both equity and debt platforms. We believe Nuveen's offering across real assets more broadly is well-positioned to help clients across Asia navigate volatility alongside managing their responsible investment goals." Raymond Chan, Managing Director & Head of APAC Credit at CPP Investments, said: "Australia is one of our key markets in Asia Pacific and this transaction marks an important milestone for our credit strategy in the region. The investment builds upon our extensive market research and insights from our successful investments in Australia. Leveraging Nuveen's strong local network and capabilities, this partnership enables us to tap into attractive real estate debt investments in Australia and further augment our credit program in the region. These opportunities offer stability and attractive yields amid global volatility, contributing to long-term returns for the CPP Fund." *Top 20 largest global asset manager based on Pensions & Investments, 12 Jun 2023. Rankings based on total worldwide assets as of 31 Dec 2022 reported by each responding asset manager, with 434 firms responding; updated annually. TIAA is the parent company of Nuveen. About Nuveen Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.3 trillion in assets under management as of 30 September 2024 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit Nuveen Real Estate is one of the largest investment managers in the world with US$142 billion of assets under management. Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing. With over 90 years of real estate investing experience and more than 770 employees* located across 30+ cities throughout the United States, Europe and Asia Pacific, the platform offers global reach with deep sector expertise, providing investors access to high quality investments across the private real estate investment landscape. For further information, please visit us at *Includes 360+ real estate investment professionals, supported by a further 411 Nuveen employees. Source: Nuveen, 31 March 2025. About CPP Investments Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At March 31, 2025, the Fund totalled C$714.4 billion. For more information, please visit or follow us on LinkedIn, Instagram or on X @CPPInvestments.
Cision Canada
an hour ago
- Cision Canada
Canada risks missing out on billions in critical mineral investment without swift policy changes: report
Governments can attract investment, accelerate development, and capture opportunities arising from the global energy transition by sharing financial risks while upholding Indigenous rights and environmental protections OTTAWA, ON, June 12, 2025 /CNW/ - New research from the Canadian Climate Institute finds governments should act swiftly to de-risk critical minerals investment and accelerate project timelines—without cutting corners on Indigenous rights and environmental protections—to avoid missing out on a multi-billion dollar economic opportunity. Six priority critical minerals—copper, nickel, lithium, graphite, cobalt, and rare earth elements—form the building blocks of clean technologies like renewable energy and electric vehicles, among others. Canada's current production levels have barely scratched the surface of existing reserves, and demand is growing for these minerals that are essential to enhancing Canada's energy security and enabling the global transition to clean technologies. A report published today by the Canadian Climate Institute, Critical Path: Securing Canada's place in the global critical minerals race, finds that investment in these six priority critical minerals in Canada would have to grow substantially to keep pace with domestic and global demand. In fact, by 2040, Canada risks losing out on $12 billion a year in critical minerals production unless mining ramps up to meet demand from domestic industry alone. Amid increased competition for critical minerals, geopolitical turmoil, and rapidly evolving trade relationships, new investment of $30 billion would have to flow into Canada over the next 15 years to fully meet domestic critical minerals potential. To meet the growth in global demand—which is expected to double by 2040—investment in Canadian critical minerals would have to increase to $65 billion in that time frame. Yet investment into critical mineral projects hinges on expectations about future market prices—some of which are extremely volatile and can be overly affected by the actions of a few powerful players. To give investors more certainty, governments should act swiftly to share risks through targeted policies and programs, such as equity investments, offtake agreements, or contracts for difference. The report underscores that successful critical mineral projects require strong partnerships with Indigenous nations and communities, ongoing respect and recognition of Indigenous rights and self-determination, and robust environmental protections. It recommends governments streamline and accelerate project review processes by reducing inefficiencies, but warns that cutting corners when it comes to Indigenous rights and protecting the environment has been proven to backfire and lead to further delays. Specifically, the report recommends the federal, provincial, and territorial governments de-risk critical mineral mining projects by: Developing agreements between government and private companies to share the financial risk of investment in critical mineral projects. Providing more funding for Indigenous communities to participate and partner on mining projects and enhance access to capital for ownership opportunities. Strengthening mining regulations to reduce environmental risks and liabilities for communities that build on existing voluntary standards. Improving the efficiency of project reviews and decision making processes across multiple jurisdictions, without cutting back environmental safeguards or Indigenous consultation. The Climate Institute also commissioned three companion papers exploring related topics, including: Indigenous participation in the critical minerals sector, the emissions impact of ramping up critical minerals mining in Canada, and measures to reduce the environmental risks of increased mining activities. QUOTES "Critical minerals represent a multi-billion dollar opportunity for Canada in a global energy transition that continues to pick up pace. But Canada's critical minerals sector is struggling to attract enough investment to keep up with demand. As competition heats up and trade relationships evolve, Canadian governments should make haste to adopt policies to unlock private investment and bring resources to market faster—all while forming respectful partnerships with Indigenous communities and reducing environmental risks." — Rick Smith, President, Canadian Climate Institute "Securing Canada's place in the global critical minerals race requires swift action to unlock public and private investment that can power Canada's energy transition with the building blocks of clean technologies. Our Critical Path report offers a clear blueprint for the steps governments can take to seize this opportunity." — Marisa Beck, Director, Clean Growth, Canadian Climate Institute "All clean growth projects will be built on treaty lands, land claim areas, traditional territories, or within close proximity to an Indigenous community. This unique moment in time can affirm Indigenous rights to land and self-determination and encourage meaningful partnership between Indigenous nations, industry, and government. The Canadian Climate Institute's report provides a clear path on how Canada can grow its critical minerals sector in full partnership with Indigenous Peoples." — JP Gladu, Founder and Principal, Mokwateh "Canada has an opportunity to lead the transition to cleaner energy sources, but seizing that opportunity requires accelerating the development of a secure and circular domestic value chain for Canada's battery industry, from mine to market to recovery. Investing in Canadian critical minerals mining and processing will create jobs, grow the economy, and ensure Canada secures its place as a global leader in the battery value chain." — Sean de Vries, Executive Director, Battery Metals Association of Canada "Canada has a significant opportunity at hand to develop our critical mineral reserves, which among other imperatives are critical for a lower-emissions economy. This report clearly demonstrates the importance of making it easier for mining projects to secure financing to make this happen. By deploying loan guarantees and other financial risk-sharing instruments to de-risk projects, federal and provincial governments in Canada can crowd-in private capital, and keep projects on track despite market uncertainty." — , Senior Vice President, Office of the CEO, Royal Bank of Canada CONTACTS Claudine Brulé (Eastern Time) Lead, Communications and External Affairs Canadian Climate Institute (226) 212-9883 Krystal Northey (Pacific Time) Public Affairs Lead Canadian Climate Institute (226) 212-9883 About the Canadian Climate Institute The Canadian Climate Institute is Canada's leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada's net zero energy transition, and making our economy and infrastructure more resilient to a warming climate.
Cision Canada
3 hours ago
- Cision Canada
Petro-Victory Energy Corp. Announces Short Term Loans
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS/ DALLAS, June 11, 2025 /CNW/ - Petro-Victory Energy Corp. (TSXV: VRY) (" Petro-Victory" or the " Company") announces that it has borrowed an aggregate of US$350,000 (the " Loans") and issued unsecured promissory notes to Thomas Cooper, a director of the Company, and to an arm's length third party (collectively, the " Lenders"). The Loans have a term of one year and bear interest at an annual rate of 14% per annum until maturity and 18% per annum thereafter. The Lenders will be issued an aggregate of 685,350 bonus warrants (the " Warrants") in connection with the Loans, with each Warrant being exercisable at CAD$0.70 per common share on or before June 2, 2026. The Loans and issuance of Warrants remain subject to TSX Venture Exchange (" TSXV") final acceptance. The Loan from Thomas Cooper in the aggregate amount of US$175,000 and the issuance of 342,675 Warrants in connection therewith each constituted a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as Mr. Copper is a related party (as defined in MI 61-101) of the Company. The Company relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party matters, as the Company is listed on the TSXV and neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves the related parties, exceeded 25% of the Company's market capitalization (as determined under MI 61-101). About Petro-Victory Energy Corp. Petro-Victory Energy Corp. is an oil and gas company engaged in the acquisition, development, and production of crude oil and natural gas in Brazil. The total portfolio under management includes 49 concession contracts with 276,755 acres, net to Petro-Victory plus an additional 6 concessions and 19,074 acres owned jointly with BlueOak. Through disciplined investments in high-impact, low-risk assets, Petro-Victory is focused on delivering sustainable shareholder value. The Company's common shares trade on the TSX Venture Exchange under the ticker symbol VRY. Cautionary Note Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available. In the interest of providing Petro-Victory's shareholders and potential investors with information regarding Petro-Victory's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, " forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "objective," "ongoing," "outlook," "potential," "project," "plan," "should," "target," "would," "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement. Specifically, this press release contains forward-looking statements relating to, but not limited to, TSXV approval for the Loan and Warrants. These forward-looking statements are based on certain key assumptions regarding, among other things, the receipt of TSXV approval for the Loan and Warrants. Readers are cautioned that such assumptions, although considered reasonable by Petro-Victory at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The above summary of assumptions and risks related to forward-looking statements in this press release has been provided in order to provide shareholders and potential investors with a more complete perspective on Petro-Victory's current and future operations and such information may not be appropriate for other purposes. There is no representation by Petro-Victory that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and Petro-Victory does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law. SOURCE Petro-Victory Energy Corp.
