Even rising oil prices have not brought back the prosperity of yesteryear to Alberta cities.
The economy of some municipalities like Lloydminster and Fort McMurray does not seem to be doing as well as it did during oil price peaks in 2014 or 2017.
Charles St-Arnaud, senior economist at financial firm Alberta Central, says the province’s oil and gas sector employs just 75% of the total workforce in 2014.
The situation is the same in the construction sector. The current workforce is 80% of that of this period.
Mr. St-Arnaud believes that the oil industry has changed permanently. Corporations focus on dividends for their shareholders. They invest in smaller projects aimed at improving their efficiency, rather than in expanding their activities.
According to him, this is not necessarily bad news. Going forward, he said, Alberta’s economy will experience fewer economic booms, but will do better when oil and gas prices decline.
To see in video