With oil companies and the provincial government suddenly flush with cash, why does it not feel like a boom in Alberta? Because it’s not. Despite bluster from the UCP, investment, growth, wages and jobs (in many sectors) are down. #AbLeg #abpoli #cdnpoli theglobeandmail.com/opinion/articl…
“Alberta will continue to lag Canadian average GDP growth for the foreseeable future.”
“Oil and gas investment is forecast to remain markedly below previous highs”
“We’re still well below historic levels in labour compensation, a reflection of a weaker overall economy and job market.”
“The previous boom was, for all intents and purposes, an oil sands project construction boom. And there are three key factors preventing a return to those days. First, there remains uncertainty about long-term oil prices… (and) forecasts of long-term demand are dropping fast.”
“Second, oil sands projects require long-term bets. Unlike some oil resources, an oil sands project involves a large, upfront investment and a long wait for returns. Evidence from around the world shows oil companies have been shying away from long-cycle investments for years.”
“Finally, there is climate change risk. As the world acts on climate change, oil sands projects have already found themselves vilified, and that’s only going to get worse… (Companies are not) excited to make long-term investments in emissions-intensive oil.”
• • •
Missing some Tweet in this thread? You can try to
force a refresh
