• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 1 hour Joe Biden's Presidency
  • 30 mins The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 4 hours Biden's National Security Director vows to release report on Khashoggi murder. Is it time to add to Brent futures long position ?
  • 31 mins The Debate Starts : Remake Republican Party vs. Third Party
  • 3 hours Rejoining Paris Climate Accord is Devestating
  • 24 mins Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 7 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 11 hours An exciting development in EV Aviation: Volocopter
  • 11 hours JACK MA versus Xi Jinping
  • 1 day Did I Miss Something?
  • 1 day Investments worthy in versatile and clean natural gas
  • 1 day https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
Oil Majors Win Big As LNG Prices Soar

Oil Majors Win Big As LNG Prices Soar

Spiking natural gas prices in…

China Snubs Washington With Big Oil Deals In South Iraq

China Snubs Washington With Big Oil Deals In South Iraq

China and Russia are significantly…

Oil Rallies Despite Growing Demand Concerns

Oil Rallies Despite Growing Demand Concerns

Oil prices rebounded on Tuesday…

ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Alberta Hit Hard By Oil Crash As Unemployment Skyrockets

Times are tough in Alberta and to be sure, we’ve piled it on heavy when it comes to cataloguing the long list of pitiable outcomes that have accompanied crude’s steep slide.

The province is at the center of Canada’s dying oil patch and as crude extended its seemingly endless decline last year, Alberta saw oil and gas investment plunge by a third. That’s bad news for authorities who count on resources for 30% of provincial revenues.

Rig activity fell by half in the first seven months of 2015 and as the job losses mounted, the sorrow deepened - literally. Suicide rates jumped by 30% and in Calgary commercial break-ins almost doubled from a year earlier, while bank robberies were up 65% and home invasions increased 52% (read more here).

Meanwhile, food bank usage spiked as those who used to be donors found themselves depending on the free meals for subsistence.

And speaking of food, prices for fresh fruit and vegetables are seeing double-digit inflation thanks to the plunging loonie.

All in all, a very bad situation indeed and on Tuesday we learned that the picture was actually materially worse than an initial round of statistics led us to believe. Related: 9 Billion Barrels Of Crude At Risk In Massive Nigerian Oil Shakeup

“Statscan’s annual revisions of its national Labour Force Survey data ratcheted up Alberta’s net job losses last year to 19,600, from the 14,600 the statistical agency originally reported in its final 2015 survey released in early January,” The Globe And Mail reports, adding that the losses “exceed the 17,000 jobs Alberta shed in the Great Recession in 2009.”

In fact, 2015 was the worst year for job losses in the province since 1982. Related: China Invests $4.6 Billion In Killing Coal, But Is It Enough?

By the end of last year, Alberta’s unemployment rate had risen to 7.1% from just 4.8% at the end of 2014. As The Globe And Mail goes on to note, that’s the highest level in two decades. And it’s projected to get worse. Alberta could see unemployment rise to 7.5% in H1.

Most of the positions lost were breadwinner jobs. The province shed 51,000 full-time positions for the year, up notably from Statcan's initial read of 44,000.

"The latest figures are also in stark contrast to 2014, when Alberta added 63,7000 positions, more than half of all jobs created in Canada that year," The Calgary Sun adds, underscore just how sharp the reversal of fortunes has been.

"Alberta is, in effect, ground zero when it comes to absorbing a commodity price shock," National Bank said last week. "More than any province, it will take the brunt of the expected drop-off in business investment." Related: Currencies Under Deeper Pressure From Rout In Commodities

Right. And that means more hardship ahead for O&G sector employees like Sean O’Reilly, 46, who, until last November, was a senior manager at Enbridge Inc.

O'Reilly, who spoke to The Globe And Mail, says he's "embarrased and ashamed", but with a wife and two small children he may be forced to change career paths and move out of the province.

"Southern Ontario manufacturing looks pretty good right now," he says. "I just need one job."

By Zerohedge

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • joey on January 28 2016 said:
    Don't foget the NDP. Carbon tax for the people, non for the oil producers, and jacks to the business tax rate. The NDP turns the the knife that has been inserted into Alberta.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News