The core premise of this argument is that lack of pipeline access to tidewater is forcing tarsands crude to be sold at discounted rates. With greater access and market diversity, will come higher prices for tarsands crude.
No surprises here.
"I think that what we just heard is politics and not a lot more than that."
Cheap oil will have a noticeable impact on the province's economy, BMO's economist warns. And it might push Alberta in a recession, too.
Fewer than one-in-ten post-secondary graduates find oil and gas industry associations credible and trustworthy when it comes to carbon emissions. That shouldn't come as a huge surprise given that industry associations like the Canadian Association of Petroleum Producers have fought new greenhouse gas regulations and successfully lobbied to weaken Canada's environmental laws.
OPEC's decision to maintain production gives Mr. Prentice an opportunity to remake government. Instead of protecting Big Oil from OPEC, Mr. Prentice should protect Albertans from Big Oil by revamping Alberta's revenue structure and diversifying our economy so that Albertans will never experience another crash like the crash of 2015.
The short term problem is that Alberta has expensive oil which will make it challenging for all governments to achieve their fiscal goals. Revenues are down. Already we are seeing the incredible shrinking surplus of the Harper government. Medium term the market will right itself and business will pick up.
A slump in Alberta's crude oil prices means the province's economy is slowing down, and many want to know what the future
Alberta Premier Jim Prentice says despite the falling price of crude oil, the province remains in good shape financially