Alberta oil, gas revenues double budget forecast

Gary Park, Petroleum News Calgary correspondent

Higher-than-expected oil and natural gas royalties generated windfall revenues for the Alberta government in the fiscal year ended March 31, 2003.

Natural gas and by-products revenues raced to C$5.13 billion from the budgeted C$2.57 billion and crude oil royalties returned C$1.18 billion compared with the budget estimate of C$469 million. Synthetic oil and bitumen royalties generated C$183 million, C$105 million better than forecast.

The only dip occurred in sales of provincial leases, which fell short of the budgeted C$609 million by C$44 billion.

The discrepancies stemmed from the government’s best-guess of US$20 West Texas Intermediate for crude and C$3 per thousand cubic feet for gas when the 2002-03 prices ended up averaging US$21.12 for oil and C$4.98 for gas.

Finance Minister Patricia Nelson said unforeseen events such as war in Iraq, civil unrest in Venezuela and colder than normal temperatures in fall and winter were the major factors contributing to the missed estimates.