Quote:
Originally Posted by onanewday
So a question on growth in the city.... i know we have been in an energy boom (oilsands related) for some time. But how much of the growth is related to that and how much is just related to Calgary reached a certain size and now the growth is just feeding on itself? It can do this the other way as well.
It seems to me that cities/metropolitan areas reach a certain size and they gain a life of their own... they just grow. And if we repeat other centres... our growth might start to feed on itself even more quickly.
Just though on growth.
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Well... that's difficult to answer.
Only about 5% of Calgary's employment population work in "the oil and gas sector", BUT that does not include service industries that might highly (but not exclusively) rely on oil and gas, such as manufacturing, financial services, legal services, etc.
Furthermore, employees in these sectors are paid relatively high wages, disproportionately affected demand for retail, construction, food, and entertainment.
Lastly, it is largely because of oil and gas royalties that Alberta can support high investment in public health, education, and construction.
So basically, some people are drawn to Alberta for high-paying oil&gas jobs, but most come for a variety of industries that are positively affected by high oil prices. Fact: Royalties to the province are more tightly correlated to O&G prices than O&G sector employment (because of our unique taxation and royalty model). This implies that growth in education, healthcare, and construction is more reliant on oilsands production than energy sector employment under our current model. To answer your question though, Calgary's economy is far more diverse than it was in 1982. Will growth still be affected by O&G price slumps? Yes, as will probably always be the case so long as oil is in demand and AB has more than other places in the world... Though, the wedge is shrinking...