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Speaking in Calgary, Kenney was frank about the troubles ahead. The UCP’s 2020 budget, tabled just last month, relies on an anticipated 38 per cent increase in energy royalties to reach balance by 2023, setting its West Texas Intermediate estimate at US$58 a barrel.

On Monday, WTI closed down more than $10 at just US$31.13 a barrel. Western Canadian Select heavy oil ended the day at $17.80.

“Economic fragility, combined with a global recession and a collapse in prices constitutes a profound challenge for Alberta and for Canada,” Kenney said.

Markets have been thrown into chaos with a price war between Russia and Saudi Arabia and the continuing spread of COVID-19. Alberta now has seven confirmed cases of the novel coronavirus, and while risk in the province remains low, the global risk of exposure is rising.

Mike Holden, vice president of policy and chief economist at the Business Council of Alberta, said the situation is “a whole perfect storm of events that is conspiring to undermine growth in Alberta.”

But he added the shock of plunging oil prices will be felt across the country eventually, as the cost of almost everything but gasoline will rise.

“It will affect Alberta first and it will affect Alberta deeply, but it is not going to stop at the provincial borders.”

Call to redraw Alberta’s budget

On Monday, NDP Leader Rachel Notley called for Kenney to return to the drawing board with the 2020 budget saying it was “never a credible document.”