Alberta elections could boost Canadian oil image

Significance

The NDP won 42% of the popular vote and 53 of the provincial assembly's 87 seats while the PC was reduced to eleven seats and third-party status. This surprising result will have important implications for Alberta's oil sector. It has also shattered preconceptions about what was previously considered Canada's most conservative province and may have significant implications for the federal election due in October.

Impacts

• Keystone XL will face greater challenges as shale oil in the United States consolidates.
• Greater solar adoption poses a greater long-term threat to the Alberta gas sector.
• LNG exports will remain strong for geopolitical reasons, with Central-Eastern Europe seeking to diversify from Russian sources.
• However, LNG will face stiff opposition from First Nations groups in British Columbia.