Sunday, August 12, 2007

“4 Places that love Expensive Oil”

In Alberta, Norway, Venezuela and Alaska, no one’s complaining about $80 crude. It fuels booming economies, cradle-to-grave security and handy checks for every resident.

Of course, Alberta is the leading story. Oil isn’t the only factor fueling Alberta’s economy, but it sure doesn’t hurt. After researching some of the Real Estate numbers and how they equate to your cash-in-hand profit this is what I found. But, just remember that Real Estate appreciation and profits need stable economic fundamentals to truly succeed. That means that in Alberta the prices are rising AND they’re sustainable as well as balanced, NOT speculative as our Western neighbor tends to be.

Keep in mind that in Alberta prices have a lot of room to grow, and they will, while still remaining affordable. Some of the reasons why; an undervalued market, high incomes, low taxes, strong in-migration, surplus of jobs, high growth industries and an affluent government with zero debt, are but a few reasons….

Rising oil prices are nothing short of a curse for most Americans. While most U.S. consumers are scaling back, residents of Alberta, Alaska, Venezuela, Norway and other oil-fertile regions are enjoying an economic boom so rich that, in some cases, the government is sending cheques to its citizens.

Alberta’s oil boom has not only attracted oil companies and their workers, it has drawn related businesses like plastics manufacturing.

Rising oil prices have spurred a big increase in investment by the private sector, as oil companies have jockeyed to boost production and exploration. Between 1996 and 2004, private oil companies pumped $36 billion into the area, according to the Canadian Association of Petroleum Producers. CAPP predicts another $45 billion will be invested over the next decade.

This week alone $38Billion was announced. That brings the total to over $200 Billion to date.

No comments: