Drop in oil price will have impact

Plummeting price of oil may have big impact on Canadian and B.C. economies.

The plummeting price of oil may have a big impact on the Canadian and B.C. economies in the next year or two.

Some of that will be positive, but it is likely that it will be mainly negative.

The price of gasoline (but not diesel fuel) is falling, and that means more money in the pockets of consumers. This helps them meet other obligations, such as rent, credit card bills and child care. If the provincial and regional governments can avoid the temptation to tax this newly-found money out of people’s pockets, the fall in prices will be a good thing.

One other bright spot may be a boost in exports if the dollar remains low.

The negative implications are widespread. There will almost certainly be a fall in economic activity, and particularly jobs. Many well-paying jobs are concentrated in the oilsands. Many of our residents either work there or work for companies that supply the oilsands.

There will be no new construction projects in that area, as long as oil prices stay at the $60 to $70 per barrel level. It simply costs too much to produce oil from the oil sands. As economic activity is reduced, it impacts taxation to the federal and provincial governments. Alberta, Saskatchewan, Newfoundland and B.C. all are dependent on revenue from oil and natural gas.

In B.C., one LNG project has been delayed by the falling price of oil, as Asian natural gas prices are tied to oil prices. More could be delayed or even cancelled. It is significant that none of the major LNG players are ready to commit.

A fall in economic activity likely means that 2015 will see much lower growth than anticipated, which won’t help the overall Canadian economy.

– Langley Times

 

Just Posted

Unusually nasty odour repulses Chase residents

Village staff trying to get bacteria working in lagoons at sewage treatment plant

Boil-water notice lifted after 9 years

Sunnybrae residents now have access to safe drinking water straight from the tap

Enrolment increase boosts North Okanagan-Shuswap School District budget

Additional money provided to support new curriculum, school supplies for students

Flooding complicates summer fun, health authority warns

Avoid fast-flowing water such as creeks and rivers.

Lakeside stage will rock on Canada Day

Sicamous is bringing all-star musical talent to the beach park to celebrate… Continue reading

What’s happening

Find out what is happening around the valley this sunshine-filled May weekend

B.C. RCMP swoop in to save injured eagle

An eagle with a broken wing now in a recovery facility after RCMP rescue near Bella Coola

Run for beer along Penticton’s Ale Trail

The second annual Penticton Beer Run takes place on June 2

Bug spray 101: Health Canada wants you to stay bite free

Health Canada is reminding Canadians to use bug spray and other insect repellents safely

Unions reject CP Rail contract offers

Both meeting Friday to determine next steps; 72 hours notice required before strike action.

B.C. jewellers warn public about fake gold scam

‘They are playing on people’s sympathy and their greed’

Former B.C. premier says pot industry about to enter Wild West

Mike Harcourt says Canada is about to enter a new gold rush with many dreaming of striking it rich

Hunt continues for two suspects in Ontario restaurant explosion

The explosion left 15 people injured, but all victims have now been released from hospital

B.C. teacher charged with sexual offences involving two teens

Henry Kang, 50, of Abbotsford charged with two counts each sex assault and sexual exploitation

Most Read