The oil shock is having a destabilizing effect on the status quo in many countries. Yesterday’s majority government win by the NDP in Alberta ended the Progressive Conservative Party’s 44-year reign in the oil-centric province. It also offers a sense of the headwinds facing Stephen Harper’s federal government in the national election this fall.
It will take more than just a party change however, to address fiscal challenges that will persist with lower oil prices. See: Energy sector braces for change with NDP win.
“Energy royalties are on the table, corporate income taxes will increase, and bitumen pipelines will lose at least some direct government support”.
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