[QUOTE=Gorsnak]
Alberta’s certainly not doing well only because of oil - other sectors are booming as well, mostly because the very low tax rates make doing business there attractive. And why can Alberta afford low tax rates? Energy royalties, that’s why. Plus the huge capital investments being made in the tar sands are fueling massive spending on housing/services etc up in Ft Mac and the like, all of which generates lots of taxable incomes, etc. It’s a nice position to be in.
You can point to the energy resources of BC and Saskatchewan if you like, but they just aren’t on the same scale. In 04/05, Alberta collected $10 billion in energy royalties. Saskatchewan collected $1.4 billion (according to their respective govt websites). Alberta’s oil revenues alone are substantially larger than the entire provincial budget in Saskatchewan - as in, with Alberta’s oil revenue, we could have no provincial tax whatsoever, of any kind, and increase spending by about 40% to boot. Of course, if we had Alberta’s oil revenue, we’d have all kinds of extra expenses providing services to a larger population, etc, but I trust my point is made. We have nowhere near as much oil as Alberta, and much of what we do have is less valuable heavy and/or sour crude, as opposed to the light sweet stuff.
Nevertheless, Saskatchewan has been running with a balanced budget for many years now and has a healthier economy than most provinces, and all that with the NDP in power for the last decade. All the Tories ever did here was run up a huge deficit, so you’ll excuse me for not thinking that Tory policies are the way to prosperity. 
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Alberta’s economy has been outperforming Canada’s for a long time - much longer than the current run-up in energy prices. In fact, until very recently, Alberta made less money, after equalization, from oil than Quebec made from equalization payments. And per-capita, several other provinces got more money in equalization payments than Alberta got from oil after you factor out what we paid to the rest of Canada in equalization transfers (about $3500 per capita).
And there are plenty of other provinces and states that have had huge windfall profits and squandered it. California is an economic mess despite making huge money during the dot-com boom. Rather than cut taxes and pay down debt, California chose to go on an insane spending spree. Alberta didn’t.
It’s not just luck that Alberta is where it is. In the 1990’s we made some very hard choices and cut spending dramatically at a time when we didn’t have that much oil revenue. As a result, we balanced the budget, paid off the debt, and today we can spend more money because we’re not spending 21% of the provincial budget on debt servicing costs.