There are no simple solutions to low oil prices for Alberta’s fossil fuel-dependent economy, Premier Jim Prentice said last week.
“I have to be clear. As I’ve said before, to deal with the implications of not just $75 oil at this point, but sub-$75 oil, there will be consequences for all Albertans,” he told the Calgary Chamber of Commerce November 28.
“There will continue to be efforts by OPEC to sustain production levels, to exert pressures both on their own membership and on others,” he said, so “we’re going to be in a low trough in the price cycle for some time.”
Graveland notes that the province has long been vulnerable to the boom-and-bust cycle of fossil fuel development. “Alberta has chronically struggled with oil prices affecting its budgets, delivering billion-dollar windfalls and shortfalls on short notice,” he writes.