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Alberta's Economy on a Roller Coaster Ride - Premier Ed Stelmach

by albertacowpoke | June 29, 2009 at 03:34 am

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The Province of Alberta has enjoyed a booming economy for the past 15 to 20 years. This was primarily due to high oil prices and the ability to to develop the Alberta Oil Sands. Alberta was able to benefit from the Royalties for both Natural Gas and Oil.

If one takes a drive or a helicopter trip through Alberta, one can see a large network of pipelines, built within the past five years, can be seen, delivering oil and natural gas to North American consumers.

Before the recent global recession there were plans to build upgraders in the Edmonton area, near Redwater. Most of those plans have now been postponed or canceled in their entirety.

Oil prices this year have slumped a low of close to $40 a barrel and have just recently recovered to between $65 to $70 a barrel.

The Global Recession has put an enormous strain on the Alberta economy, which largely consists of the Petroleum Industry and Agriculture. Mad cow disease and low grain prices have hit the agriculture hard as well. Unfortunately during the Boom the economy has not been diversified.

Speaking in Calgary on Friday, Premier Ed Stelmach, also know as "Honest Ed" said the the Alberta economy will be on a roller coaster ride. He said it was hard to predict where the economy would go in the foreseeable future, but that he thought it would get worse before the economy recovers in 2010.

Echoing a Conservative Think Tank, The Fraser Institute, he said the economy would shrink before there would be a slight recovery in 2010.

It's just not oil and gas prices, but it's the value of the dollar, the manufacturing sector, and that's why we're promoting Alberta globally, because we have to find new markets for our products."

For the Budget Year ending in March 2010 Alberta has tabled its first deficit budget in 16 years, amounting to 4.7 Billion Dollars.

Alberta's economy will be on a roller-coaster ride for the foreseeable future, Premier Ed Stelmach says.

Speaking in Calgary on Friday, he said it's hard to predict what the economy will do in the short term, but he expects things will get worse before they get better.

Echoing predictions made last week by the Fraser Institute, a conservative think tank, Stelmach said the economy would likely continue to shrink this year before posting some growth in 2010.

"There's so many factors in the mix," he said.

"It's just not oil and gas prices, but it's the value of the dollar, the manufacturing sector, and that's why we're promoting Alberta globally, because we have to find new markets for our products."

In April, the province tabled its first deficit budget in 16 years, with plans to be $4.7 bill

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Paschen

at 03:41 on June 29th, 2009

All Nations and Provinces or States so it seems failed totally to make provisions for bad times in economy, business, Climate, Farming and so one.

The politics of the Post WWII and especially since the 1970 is almost criminal.

albertacowpoke

at 03:55 on June 29th, 2009

Thanks for this Uwe, I could not agree with you more. Politicians have looked to the next election cycle and what they perceived to be popular. In Alberta especially, no diversity was planned in the economy, thus this Province is faced with two failing sectors in its economy. In the past there have been generous grants to farmers both for dipping grain markets and to cover the costs of the closed American border to Canadian cattle, due to Mad Cow disease. Those days seem to be over. The question is, What now?