Fires strip away shine of Canada's oil eldorado by Staff Writers Ottawa (AFP) May 18, 2016 The Western Canadian province of Alberta, in the grip of massive forest fires, was the nation's economic engine before the oil rout. About the size of France, the province flanks the eastern slopes of the Rocky Mountains. Vast prairies stretch across its southern parts, where cattle graze on wild grasses. A thick boreal forest of conifers such as spruce and jack pine covers the north, where heavy oil sands deposits were first documented by European traders nearly three centuries ago. In the late 1960s Alberta started to mine the oil sands. But it took decades for widespread exploitation, after new technologies reduced extraction costs and oil prices rose, making it economical. With the third largest oil reserves in the world, Canada has risen in recent years to become the fifth largest crude producer. The oil sands boom attracted workers to Alberta's north from across the country and around the world, leading to the birth of a city in the boreal forest -- Fort McMurray. Its population has increased at least tenfold in the last 50 years. Alberta's population, meanwhile, has increased at more than double the national rate to 4.2 million, representing 11 percent of Canada's total, according to the government statistical agency. The oil sector's output has quadrupled over the last 30 years. The product has been exclusively sold to the United States. Several new pipeline projects are in the works to move bitumen from landlocked Alberta to tidewater in order to reach new overseas markets, but they face stiff opposition from environmental activists. Meanwhile, the drop in oil prices from a 2014 high of more than $100 to below $50 last year has forced companies to slash staff and put new projects on hold. Before the oil plunge, the median Alberta household income was about Can$100,000, or Can$20,000 more than the national average. In the wake of falling prices, an estimated 100,000 people lost their jobs over the past two years, pushing up the unemployment rate from less than four percent to 7.2 percent in April. The economy of Alberta, where the natural resources sector accounts for a third of GDP, meanwhile, plunged into recession. With the shutdown or slowdown of oil activities since the outbreak of forest fires in and around Fort McMurray this month, production fell by 1.2 million barrels a day, according to the Conference Board of Canada. This has resulted in an additional Can$1 billion hit to the Alberta economy, and the bill continues to grow as the fire spreads and intensifies.
Related Links All About Oil and Gas News at OilGasDaily.com
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |