Quote:
Originally Posted by Thunderball
Well, if the Canadian price is significantly lower than the world rates (75% of the world price), with high operational costs, and additional taxes, what do you think is going to happen. That's why Alberta lost between $50 and $100 billion dollars between 1980-1985 or between 15 and 25% of its total GDP in those years. Alberta was subsidizing Canadian oil costs.
The global downturn was felt between 1985 and 1986, where the price of oil in today's dollars fell from about $50 to about $25. Alberta's main losses were between 1981 and 1985. The global price of oil did hit its peak and start to fall in 1982.
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Wrong, it was the glut of oil in the world and the staggering interest rates that initially caused problems. The price of oil dropping in 1985-1986 further exarcebated the problems. Any self respecting economist will tell you that.