Tuesday, August 04, 2009

Oil - Canada's economic saviour

Alberta's economy was hit by the recession as was the rest of the country. The province saw record job losses, debt and housing prices declines but when it comes to rejuvenating the countries economy it will be oil that gets things going again.

Oil prices have yet to rebound to the anticipated figures for this period so Alberta's deficit will get that much bigger. The stability that is necessary for the province to rebound is still not happening and may not happen till 2010. Alberta may be diversified but it is still a resource based economy.

We're all waiting for the upturn in international economic activity that starts to drive oil and natural gas prices upward when that happens let the good times roll again. For now the long term view, late 2010, is the best bet before we see the boom years again.

When they go, and they will, oil will save the country:

"The oilsands production would result in $1.7 trillion in incremental GDP growth for Canada, $78.1 billion alone for Ontario and Quebec, the study concludes, adding it translates into 700,000 jobs being created across the country and additional tax revenues for Canada of over $306 billion.

When conventional gas and oil developments, plus LNG (liquid natural gas) development, pipelines and offshore facilities are added in, the industry will boost Canada's GDP by $3.6 trillion ($144 billion in Ontario alone)and will create 980,000 new jobs, contributing additional tax revenue of $429 billion in Canada."

Where do you think you should put your money for best growth?

1 comment:

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