The question is, what is our break even pricing on our current production in Alberta? Most of our production seems to be oilsands based now, which is more expensive that conventional recovery. Oil can be high, but not high enough for our production to make decent returns, and that will affect the Calgary economy as it has in the past. If the Americans bring on a large supply of cheap to produce oil, the world price could remain high, but production will shift to the American fields for profiteering, and investment/spending will suffer here, and I think we are already starting to see that.
Personally, I think its a good thing to happen every once in awhile. It brings everyone back to a more grounded economic reality, it teaches a generation to live below its means, and puts overspending politicians out the door.
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