Quote:
Originally Posted by fatboy
Wow...whoever changed thread header is DREAMING. This tower will not be adding height. Like prior posts, (scroll up) I said it will be cut down.
The talk in both cities is complete PANIC.
The oil drought happening could last 2-3 years.
Sorry boys when I lived in Alberta, I used to believe the preaching that province was not driven by Oil/Gas...WRONG. buckle up.
BOOM now BUST.
http://www.theglobeandmail.com/repor...ticle22371154/
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Actually, that's not at all the talk in either city. The talk in both cities is that this will pass (hopefully sooner rather than later), that the situation will correct itself once some of the "marginal producers" (ie. not Canada) start to slash production, that companies cut staffing and costs far too quickly and deeply back in the 2008 recession (which made it much more challenging to re-staff when oil prices quickly shot up again), and that as a lesson learned, spending reductions need to be much less drastic and more targeted this time around. As one industry person told me the other day, "Albertans are so used to the ups and downs of the oil cycle, that we don't really start to panic until prices have plummeted and stayed there for 6 months or more". That may or may not come to pass, but the fact is, the analysts do not know how low oil will go or how long the low prices will last, so it's sheer speculation.
I moved to Alberta in the late 90s; in 1998-99 prices went down to $9 a barrel and Calgary still had the look and feel of a boomtown. Unfortunately now the provincial government has not been undertaking the kind of sound fiscal management that we did then, which will lead to some nasty deficits, but hopefully that will be a lesson for the provincial government (although, that's a topic for another thread on another day).