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Lonz
 Lonz
(@alonzo)
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10/09/2019 11:30 am  

Man, the economic downturn in Alberta has been brutally.  I just called my favorite local shop from my days in Calgary, Royal Board Shop, to place a pre-order and found out they're closing at the end of the month.  Like so many Albertan businesses over the past few years, they just couldn't keep their head above water. 

Regardless of where one falls on the 'oil is good/oil is bad' spectrum, it's sad seeing the run-on effects hit Main Street in the way they have.   Such a bummer.


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c.fuzzy
(@c-fuzzy)
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10/09/2019 12:27 pm  
Posted by: Lonz

Man, the economic downturn in Alberta has been brutally.  I just called my favorite local shop from my days in Calgary, Royal Board Shop, to place a pre-order and found out they're closing at the end of the month.  Like so many Albertan businesses over the past few years, they just couldn't keep their head above water. 

Regardless of where one falls on the 'oil is good/oil is bad' spectrum, it's sad seeing the run-on effects hit Main Street in the way they have.   Such a bummer.

Has there really been an big economic downturn up there?

So far, outside of the yield curves and broad purchasing orders down type data showing the impending declines, I haven't seen it here. Still 'now hiring' signs all over. It's weird.

donuts


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Lalune
(@lalune)
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10/09/2019 12:52 pm  
Posted by: c.fuzzy
Posted by: Lonz

Man, the economic downturn in Alberta has been brutally.  I just called my favorite local shop from my days in Calgary, Royal Board Shop, to place a pre-order and found out they're closing at the end of the month.  Like so many Albertan businesses over the past few years, they just couldn't keep their head above water. 

Regardless of where one falls on the 'oil is good/oil is bad' spectrum, it's sad seeing the run-on effects hit Main Street in the way they have.   Such a bummer.

Has there really been an big economic downturn up there?

So far, outside of the yield curves and broad purchasing orders down type data showing the impending declines, I haven't seen it here. Still 'now hiring' signs all over. It's weird.

That's why they are called leading indicator :p


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c.fuzzy
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10/09/2019 2:53 pm  
Posted by: Lalune
Posted by: c.fuzzy
Posted by: Lonz

Man, the economic downturn in Alberta has been brutally.  I just called my favorite local shop from my days in Calgary, Royal Board Shop, to place a pre-order and found out they're closing at the end of the month.  Like so many Albertan businesses over the past few years, they just couldn't keep their head above water. 

Regardless of where one falls on the 'oil is good/oil is bad' spectrum, it's sad seeing the run-on effects hit Main Street in the way they have.   Such a bummer.

Has there really been an big economic downturn up there?

So far, outside of the yield curves and broad purchasing orders down type data showing the impending declines, I haven't seen it here. Still 'now hiring' signs all over. It's weird.

That's why they are called leading indicator :p

Right right. My point was more that idk if it's the economy (such that idk if Alberta has actually seen places being hit since we haven't. Local economies being different ) or if it might be attributed to something like... the ol' internet continuing to take sales from brick n morter. If Alberta is actually seeing recession type changes I wouldn't know.

donuts


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Lonz
 Lonz
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10/09/2019 3:55 pm  

Yeah, Alberta has a pretty unique issue going on.  Its economy is very dependent on oil and gas, but it is landlocked, which makes shipping its products much harder.  It relies on pipelines and railcars (much more on the former than the latter), but capacity is limited, which makes its oil hard to get to market.  This is further compounded by the fact that, rightly or wrongly, it is extremely difficult to get new pipeline projects, or any major energy project for that matter, approved in Canada.  This essentially means that Alberta can only sell its oil into the US to be refined at American refineries.

Because Alberta can only really sell its oil into the US, and because much of it is comprised of lower-quality, bitumen-derived products, Albertan Oil sells at an enormous discount.  This means that when the global price of oil goes down, the completely margins evaporate because Albertan oil, such as 'Alberta Select,' sells at a huge discount compared to other types of oil, like 'West Texas Intermediate' and others.  As such, when oil prices dropped roughly four and half years ago, Alberta became completely fucked.  Companies laid off workers by the thousand on bothg the oilfield side and the white-collar, business side, and the bleeding hasn't stopped.  This has sucked the air out of the whole economy because its largely all built on oil.  I mean, there are other industries and stuff, but when oil goes in the shitter, Alberta goes in the shitter.

Alberta is crying out for more pipeline capacity, but it is incredibly hard to get new projects built for many reasons.  This issue is serious enough that a substantial proportion of Albertans would like to secede from Canada.  It will be at the forefront of the National election period that will be called tomorrow.

Full disclosure:  I am not an oil worker, nor have I ever been an oil worker, and the above is a gross over-simplification of a complex issue that is extremely contentious in Canada.  I'm just doing my best to give a quick overview of what I'm talking about when I refer to the economic downturn in Alberta.  


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c.fuzzy
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10/09/2019 4:01 pm  

Thanks Lonz. That's a pretty informative snapshot and something I wasn't aware of but I can better understand your earlier comment.

donuts


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RK
 RK
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10/09/2019 8:13 pm  

what do you think about the role of BC in the pipeline?  i live here but it's not an issue i follow all that closely or have strong opinions on.  

6'4" | 215 lbs | 11-11.5 boots
PNW


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Lonz
 Lonz
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11/09/2019 8:35 am  
Posted by: RK

what do you think about the role of BC in the pipeline?  i live here but it's not an issue i follow all that closely or have strong opinions on.  

Personally, I'd prefer not to go down that road.  This is the best place for talking snowboarding, and i don't want to contribute to it devolving into political discussions.

My views are quite centrist, generally, though.


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