• 1 hour Keystone Pipeline Restart Still Unknown
  • 5 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 7 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 9 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 11 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 12 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 14 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry

Breaking News:

Keystone Pipeline Restart Still Unknown

U.S. Shale To Become Profitable At Last

U.S. Shale To Become Profitable At Last

The recent change in strategy…

Can Argentina Replicate The U.S. Shale Boom?

Can Argentina Replicate The U.S. Shale Boom?

Much has been said about…

Economy Of Alberta Hit Hard By Low Oil Prices

Oil Rig

The Canadian province of Alberta has been hurt by the low price of oil that has fallen from at least US$105 per barrel in mid-2014 to current levels of around US$45 per barrel, causing job losses, office vacancies, and disturbing crime trends.

Nearly 19,000 businesses are expected to close in Calgary between 2014 and the end of this year, including nearly 7000 in 2016 alone. Vacancy rates of commercial office space in the provincial capital hit the highest level in thirty-three years at 22.2 percent in the second quarter of this year. This represents an annual jump in vacancy of nearly ten percent.

Dream Office REIT, one of Canada’s largest owners of office space, has written down the value of their Alberta properties by 43 percent as energy firms shed jobs and shrink operations.

Speaking of employment, the jobless rate for Alberta reached its highest point in twenty-two years last month to 8.6 percent. Yet the unemployment rate may be higher since Statistics Canada was forced to estimate values based on nearby regions due to the Fort McMurray wildfires last May.

A report published in July by TD Economics concluded that Alberta’s current recession would likely be the worst one to ever hit the province. Gross domestic product is anticipated to falter by 3.0 percent this year, which will be nearly half the 6.5 percent contraction since the downturn started in 2014.

The economic loss is twice as bad as the previous four recessions to affect Alberta, per TD Economics.

Related: Deepwater Tech Companies Still Reeling From Low Oil Prices

“The economic fallout from last year's oil price plunge has continued to reverberate through the province so far this year. And just as the global oil market has provided a decent whiff of recovery, the northern part of the province was hit by the outbreak of wildfires in May,” the report detailed.

The weakened economy has led to some calls for a federal bailout akin to the approximately US$10.65 billion given to the automotive industry in 2009. Yet an internal memo prepared for Labour Minister MaryAnn Mihychuk claimed that Alberta’s economy is not as dire as the auto sector was seven years ago.

"With the current downturn in worldwide oil prices, some have advocated a similar type of assistance be made available to support the oil and gas industry," said the briefing note, which was obtained by The Canadian Press under the Access to Information Act.

"However, the context differs considerably. The impact on the Ontario automotive industry was far more acute than what has been seen so far in the Alberta economy," according to the memo prepared last February and prior to the continued weakening of the province’s finances.

By Erwin Cifuentes for oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Mike Kom on August 17 2016 said:
    Now, if only the successive provincial leaders hadn't have pillaged the Heritage Fund for their own purposes.....we would be able to weather the storm....

Leave a comment

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