May 13, 2025

Oil, Wealth, and What Alberta Got Wrong

Oil, Wealth, and What Alberta Got Wrong
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Oil, Wealth, and What Alberta Got Wrong
Oil, Wealth, and What Alberta Got Wrong
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Season 2011

Norway built a $1.6T oil fund. Alberta built budget cuts and regrets. Same oil, different brains. This is what happens when politics beats planning.

In this thought-provoking episode of Bigger Table, host Abbey Englewood delves into the contrasting stories of two oil-rich regions, Norway and Alberta, and explores the long-lasting impacts of their financial decisions made decades ago. Abbey begins by highlighting the remarkable journey of Norway, which, after discovering oil in 1969, established the Government Pension Fund Global in 1990. This prudent decision has resulted in a fund worth over $1.6 trillion U.S., ensuring its citizens' stable and prosperous future.

In stark contrast, despite its promising oil discovery in 1947 and the establishment of the Heritage Savings Trust Fund in 1976, Alberta faltered due to political short-sightedness. Instead of preserving their oil wealth, politicians dipped into the fund to balance budgets and fund short-term programs, leading to a significantly smaller savings compared to Norway's. Abbey emphasizes the crucial mindset difference between the regions, with Norway focusing on long-term planning and Alberta succumbing to short-term political pressures.

The episode further examines the ramifications of these decisions, as Norway enjoys robust public services and a resilient economy, while Alberta continues to experience financial instability with each fluctuation in oil prices. Abbey concludes by challenging listeners to learn from these case studies, advocating for visionary leadership and disciplined financial management to secure a prosperous future. Join Abbey at the Bigger Table as she examines these important lessons and encourages a future of more chairs and fewer walls.

00:04 - Introduction to Oil Wealth Disparities

01:08 - Norway’s Long-Term Vision

01:54 - Alberta’s Short-Term Decisions

02:29 - The Mindset Difference

03:38 - Current State of Affairs

04:23 - Lessons for the Future

WEBVTT

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Norway built a trillion-dollar fortune from oil. Alberta didn't.

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This is how short-term politics crushed long-term prosperity and what Canada can learn.

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You're listening to Bigger Table, where more chairs, fewer walls,

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and greater progress aren't just a slogan.

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They're the mission. Let's get into it.

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Welcome to Bigger Table, where we believe progress doesn't come from building

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higher walls, but from pulling up more chairs.

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I'm Abbey Englewood, and today's episode, it's about two oil-rich regions that

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took very different paths.

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One built a trillion-dollar safety net. The other is still wrestling with budget

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cuts and political blame games. So let's dive into it.

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They both struck oil around the same time. Alberta found oil in 1947,

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the legendary Leduc discovery.

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Norway hit their jackpot in 1969, just off the coast in the North Sea.

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You'd think they'd end up in the same place. Wealthy, stable, prosperous.

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But only one of them is sitting on a mountain of money today.

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And spoiler alert, it's not Alberta. Let's start with Norway.

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In 1990, they created the Government Pension Fund Global, a massive savings

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fund designed to make oil wealth last for generations.

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They invested the profits globally, not just in their economy. And here's the kicker.

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They didn't touch the fund itself, just a small slice of the returns year after year.

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That discipline paid off. Today the fund is worth over $1.6 trillion U.S.,

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or about $300,000 per citizen.

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Think about that.

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Every Norwegian has a slice of oil wealth working for their future,

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and their kids' future too.

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Now let's look at Alberta. In 1976, Alberta created the Heritage Savings Trust

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Fund, inspired by the same idea.

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Saved during the boom to protect against the bust. But unlike Norway,

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Alberta didn't stick with it.

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Politicians started dipping into the fund to cover deficits,

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fund programs, and make the books look better before elections.

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By the 1990s, they stopped contributing altogether.

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Today, the fund is under 20 billion Canadian and barely a rounding error compared to Norway.

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So what made the difference? It wasn't the oil, it was the mindset.

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Norway thought long term. They had the discipline to say, we're not touching

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this money just because times are good.

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Alberta? They thought in four-year terms.

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Boom times meant tax cuts, big spending, and flashy projects.

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And when oil prices dropped, as they always do, they scrambled.

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Norway insulated itself from global oil swings. Alberta tied its entire economy to it.

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And every time the price of oil fell, the panic set in.

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Layoffs, spending freezes, cuts to health and education.

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This cycle repeated again and again, because the money wasn't managed with resilience

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in mind. It was managed like a sugar rush.

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Transparency also played a role. Norway's fund is public. You can see where

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the money is, how it's invested, and the returns.

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Alberta's? Less clear. Funds moved around quietly. Rules changed depending on who was in office.

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It's hard to build trust when your piggy bank keeps getting cracked open behind closed doors.

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So where are we now? Norway enjoys the world's best public services,

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universal health care, tuition-free education, strong pensions,

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and no fiscal freakouts when oil prices dip.

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Alberta, by contrast, still rides the roller coaster.

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When oil prices are high, the party starts. When they fall, the cuts begin.

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And somehow, the question keeps getting asked, where did all the money go?

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That leads us to the big question, what could Alberta have been like?

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If the province had followed Norway's lead, saving diligently,

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investing wisely, and resisting short-term pressure, Alberta could be a global

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economic powerhouse today.

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Instead, it's a cautionary tale. This isn't just about oil.

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It's about vision, leadership, and whether we build our futures or gamble them away.

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Norway chose to invest in its people. Alberta chose to spend on the moment.

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And now, Norway keeps growing its fund, quietly, steadily, smartly,

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while Alberta debates what to cut next.

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We can't rewrite history, but we can decide how to handle the next boom or the next opportunity.

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If we want better, we must demand better, from our leaders, our budgets, and ourselves.

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Thanks for pulling up a chair at the bigger table. If this story moved you,

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share it because one day we'll have another

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chance to do this right and we'd better not blow

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it again thanks for pulling

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up a chair at bigger table if you believe in more voices fewer walls and real

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progress please help us grow follow review and share this podcast until next time keep building.