Alberta Royalty Review - Repercussions

Repercussions

The government partially implemented the panel's recommendations. This coincided with a fall in oil prices during 2008 economic crisis. Oil and gas companies, especially juniors, complained that this hurt their bottom line, and threatened to move out of the province or shut down.

The political response was highly polarized, with the parties of the left, the Alberta Liberals and Alberta New Democrats, criticising the government for failing to get Alberta's "fair share" and, in effect, subsidizing oil companies at the expense of the public purse. They failed to make any gains against the Conservatives during the Alberta general election of 2008, however, despite a record low turnout caused primarily by traditional Tory supporters staying home.

The Conservatives then "rolled back" many of the royalty increases in 2010. Those on the right criticized the government for raising royalties and damaging profits in Alberta's most important industry, which they likened the "killing the The Goose That Laid the Golden Eggs". Junior oil companies were instrumental in funding the upstart Wildrose Party which emerged in the Alberta general election of 2012 as the major challenger to the governing Tories, and became the Official Opposition.