Oil, Wealth, and What Alberta Got Wrong

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.