Angels Or Demons?
By the time this article is published, the huge political upset in Alberta will be over a week old. No one forecast this outcome, but least of all the governing Tories, who allowed arrogance and their sense of entitlement to call an election more than a year before it was required. This decision has cost Albertans in many ways. First, for the election itself. Secondly, for an immediate by-election that will now have to take place since the former leader of the PCâ€™s decided to take his marbles and go home after the stunning defeat. And thirdly, the cost (potentially) to the province economically depending on what the new government decides to legislate over the course of the next four years.
The Premier-designate has stated publicly she does not intend to bring sweeping changes to how things are done, and she will work, â€œCollaboratively and in partnership,â€ with our oil industry. As one analyst stated, surely this Party will not be so foolish as to kill the goose who lays the golden egg.
Despite the opinions of some detractors, we all know the oil industry has been the economic driver, not just of Alberta, but of the country.Â All we can do for now is hope this is not forgotten and this new government will not create an economic crisis.
So, all politicizing aside, how do we prepare ourselves to move the industry forward despite the recent price collapse and now this new unknown?
You are not going to be surprised to find I will tell you the best thing you can do is to be sure to continue to market your business!
As I have stated in some of my earlier articles, every industry has cycles, and the oil and gas industry is no different.Â How we survive these cycles is often a matter of persevering despite the downturn.Â And, I daresay, few industries are better at doggedly pursuing their goals than the oil patch!
At the time of this writing, oil is trading in the neighborhood of $60/barrel, which is much improved from just a couple of months ago.Â The chart below shows the price since the beginning of this year, and the line is going in the right direction.Â Of course, this doesnâ€™t mean all is wonderful, but it does mean things are better.