Alberta Soap Box 🇨🇦

Comments Effecting Canadian Events – Ken McGregor

Alberta – Investment Vaporizing

with 4 comments

oil2016Alberta has had low oil prices before. The thing is,  we always had the confidence that a few years later it will bounce back. Today it’s different. Our governments don’t want our oil resource to expand. They have made It clear they want Alberta to go green. Premier Rachel Notley actually called Alberta the ‘Embarrassing Cousin’. Unfortunately their anti oil attitude has changed the game forever leaving tens of thousands of Albertans jobless and  questioning their future. Its become evident that the NDP has never had a game plan on what would replace oil revenue or jobs. With billions in new investment being cancelled or fleeing Alberta, the cushion that Albertans relied on in the bad time to keep them going is fast eroding. Low oil prices and dwindling investment has made this downturn an almost lethal blow to Alberta. For the first time I’m concerned about Alberta’s future.

Who To Blame?

Under the circumstances, It’s hard to imagine investors looking to invest in new oil technology, future upgrades and expansions  in Alberta unless it’s partially government-funded. Even when oil prices go up billions in private investment will not return unless governments guarantee access to market.  Alberta corporation have lost confidence and with the lost confidence their investment is vaporizing quickly. Badly needed investment to help Albertans get trough the down times. The NDP oil bashing is clearly to blame for the fleeing investment. To exacerbate Alberta’s problem, Trudeau campaigned throughout Quebec against the west east oil pipeline and outright came out against any chance of a west coast pipeline. The liberals anti oil pipeline stance has told investors that Alberta is closed for business. Nether governments thought through the cost of their actions on Albertans. Listening to Notley I doubt they care.

More Gas On The Fire? baltic dry

Looking at Bloomburgs oil chart, oil could slide to new lows of $20 not rebounding until 2022. This will have a huge impact on the Alberta oil sands. Again without the usual billions in investment propping Alberta up throughout this bad time Alberta will be in for a rough ride.

The world outlook isn’t helping Albertans either. The continued collapse of The Baltic Dry Index ( Index of moving major raw materials by sea) is collapsing.  Factories aren’t buying and retailers aren’t stocking. Even the WTO is cutting its forecasts for world trade growth. All this plus the collapse of the Canadian dollar is going to negatively affect Albertans in the wallet.

There is no question that the Alberta NDP are looking like a bunch of amatures. Bashing oil has devastated investment in Alberta. They have lost the confidence of investors and will shortly lose the confidence of Albertans. What industry do the Liberal and the NDP have in mind that could possibly replace Alberta oil and gas? Windmills!

Here’s to Hope

I’ve listened to MPs rant about diversification since 1972. So far little has happened. I doubt very much it’s going to happen in the near future outside of a few token government-funded infrastructure projects. If we haven’t been able to diversify out of an oil and gas economy in the past 45 years I doubt there is going to be much investor interest under a socialist NDP government.

I am hoping that the liberals and NDP come to their senses and realize their mistake, and show the investment industry that they are on board with the east west pipeline by convincing  their liberal friends in Quebec and Montreal to OK the pipeline. Hopefully this will convince investors that Alberta is still open for business.

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Written by Ken McGregor

January 17, 2016 at 7:37 pm

4 Responses

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  1. Blame it on the liberals and ndp…. for sure….. if oil price went down this way is because of some countries that floods the market and willing to collect less revenu… long as it hurts others that cant get the oil produces at that low cost….. a pipeline to nowhere wont fix it ….. your blindness either….


    January 19, 2016 at 7:26 pm

    • I’m talking about investment in Alberta not oil prices. The billions in investment infrastructure has always cushioned the down times. Libs and NDP clearly badmouthed investment out of Alberta.


      January 19, 2016 at 7:52 pm

  2. Give your head a shake, NDP has nothing to do with low oil prices.

    • Read the article. I’m taking about the investment in Alberta not oil price.


      January 18, 2016 at 2:14 pm

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