Venezuela Shock Threatens to Deepen Alberta’s Budget Woes

The Alberta Legislature building in Edmonton.

Photographer: Geoff Robins/AFP/Getty Images

Alberta is facing its toughest fiscal situation since the pandemic as a possible flood of Venezuelan oil depresses the price of heavy crude, one of the Canadian province’s largest sources of revenue.

US President Donald Trump said on Jan. 6 that Venezuela would releaseBloomberg Terminal as many as 50 million barrels of oil after US forces captured President Nicolas Maduro. Venezuelan crude is similar to the dense, high-sulfur product produced in Alberta’s oil sands, and the prospect of millions of barrels being made available to Gulf Coast refineries has widened the discount for Canadian crude.