The ongoing war in Iran, and disruption of a major energy corridor in the Strait of Hormuz, continues to fuel surging oil prices. While this will improve Alberta’s bottom line in the short term, it will only perpetuate the province’s resource revenue rollercoaster if not properly managed. With a new finance minister, let’s hope the Smith government doesn’t blow this potential windfall.

Resource revenue — fuelled by oil and gas prices — is inherently volatile. Adjusted for inflation, in recent history, it has been as high as $27.4 billion in 2022/23 (accounting for 33.2% of total revenues) and as low as $3.6 billion in 2015/16 (accounting for just 6.5% of total revenues). In its February budget, released before the Iran war began, the Smith government projected a large $9.4-billion deficit in 2026/27. And $13.2 billion in projected resource revenue, which would........

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