The Real Estate Insider Blog: “Things aren’t always as they seem” – An Oil Industry Snapshot

[AnnaB]

Are you looking for some perspective about the state of oil prices in Alberta and its impact on the economy?

Click here to get some great insights and to weigh in on the conversation.

 

[Thomas Beyer]

After a 3-5 year run up of prices by 30-40% in Edmonton and Calgary a short term (expected) 2-4% drop causes panic ?

While short term oil prices might drop below $50, this article shows very well

WHY OIL PRICES WILL GO UP

primarily due to required investments just to keep supply flat - to the tune of $680B a year .. and they will not to that if oil prices are low.

The cure for low oil prices: low oil prices.

http://oilprice.com/Energy/Oil-Prices/Why-Oil-Prices-Must-Go-Up.html

Don't wait to invest in real estate - Invest in real estate and wait. (TM)

 

[Rickson9]

In addition to "work camp population" in Fort McMurray, I found another difference for you!

Fort McMurray housing sales plunge as low oil prices persist

"In February, sales were down by a whopping 66 per cent from a year
ago, at just 48 units. That followed an annual decline of 53.19 per cent
in January."

 

[Rickson9]

[quote user="ThomasBeyer"]The cure for low oil prices: low oil prices.

[/quote]

Here's more cure for low oil prices.

"On Tuesday afternoon in New York, the price of West Texas Intermediate crude oil crashed further below $43 a barrel, a new six-year low for the
commodity."

Hopefully this cure works before we dip into the $30s.

 

[Thomas Beyer]

Yes, it will work, once overproduction stops. NA production is still growing though. As such don't listen to all the naysayers, or be one yourself. Get set for the next oil boom, by 2017. Until then Alberta will be slow, but not dead, nor shrinking, as many think.

Why US' and Canada's oil production, especially oil sands will keep on growing: http://business.financialpost.com/2015/03/10/adam-waterous-north-america-will-continue-to-build-market-share-in-global-oil-market/