As oil prices soared in recent months, Alberta was estimating they’d take in up to $7 billion more than they had budgeted thanks to the province’s immense oil wealth. The windfall was believed to be so great that provincial finance officials nearly began a road trip earlier this year to ask constituents how they should spend all that money.
Premier Ralph Klein has finally come up with a solution for the billions: give it away. Every Albertan will receive a tax-free $400 “prosperity cheque” by the end of the year. The issue has already begun to divide Canadians, many of whom say Alberta’s oil wealth belongs to Ottawa — not to Edmonton.

The premier takes a “keep your hands off it” attitude about the oil riches while the federal government has been mum on the issue, probably with good reason. The Globe reported that any political party “would face a national-unity powder keg should it wade into the issue, particularly during the coming election campaign.”
Alberta is one of only two “have” provinces — ones that pay more into the federal coffers than they get back. The oil bounty will only be increasing the divide between Alberta — which is increasingly vocal about having to support the fiscal imbalance between it and the poorer provinces — and the rest of Canada. Already the province has no debt, no sales tax and is a corporate tax haven; Calgary boasts more company head offices than all other cities in Canada except for Toronto.
This is all fine and dandy for Alberta right now, but what happens in a few decades when prices hit $200 a barrel and the province is tapped out of oil? A piece in the Star hypothesizes: “In Canada, it meant the decline of Alberta. With oil at anywhere from $40 to $70 a barrel, Alberta had prospered. But when its petroleum and coal reserves ran out, Alberta had little else. By the time the price of the world’s dwindling supplies of oil finally hit $200 a barrel, Alberta was a have-not province. Calgary, population 1 million, became a ghost town.”