How long before Alberta has provincial sale tax?

[fluffy]

Funny how everyone suddenly has a degree in economics when something like this happens. As if anyone could have seen this coming. Basically, the Alberta government, as well as the oil companies, have seen their paycheque cut in half over a couple of months. What would that do to you? Would you not do what you could to cut expenses? Or in the government's case, the deficit?

[driveangry]

Funny how everyone suddenly has a degree in economics when something like this happens. As if anyone could have seen this coming. Basically, the Alberta government, as well as the oil companies, have seen their paycheque cut in half over a couple of months. What would that do to you? Would you not do what you could to cut expenses? Or in the government's case, the deficit?

I can't believe that they couldn't or didn't see that this was going to happen. They should have learned their lesson from that last oil boom. I remember way back when, the oilmen had bumper stickers on their vehicles " Please god, let there be another oil boom. I promise not to *bleep* it all away this time."

[fluffy]

I think it was the depth of the drop and the speed with which it came that caught everyone off guard. It's one thing to prepare for market fluctuations, but when it becomes a "crash" it's a different story, as we are seeing now. If it was possible to foresee this sort of event it wouldn't have the effect it has. I repeat the question: What would you have to do were your income unexpectedly reduced by half?

[driveangry]

I think it was the depth of the drop and the speed with which it came that caught everyone off guard. It's one thing to prepare for market fluctuations, but when it becomes a "crash" it's a different story, as we are seeing now. If it was possible to foresee this sort of event it wouldn't have the effect it has. I repeat the question: What would you have to do were your income unexpectedly reduced by half?

What ever market you are involved in, you need to keep up with current events. These oil companies new in advance this was coming. They reacted in a way as if they were surprised, and done what anyone else would have done in their situation.

[fluffy]

Well if you ask me, if it were are at all possible to read the future of the stock and/or commodities markets then we'd all be rich.

[driveangry]

Well if you ask me, if it were are at all possible to read the future of the stock and/or commodities markets then we'd all be rich.

Yes you are correct, but this is political.

The oil companies new the Saudis were going to flood the market. And they know it will be for a while .

[twobits]

Instead of socking away some of the oil revenue, Alberta will now rely on the middle class and the poor to pay a sales tax to carry the load. When oil prices rise back above the cost of production (about $80 a barrel for TarSands(tm) oil ), it'll be back to business as usual. The big oil corporations still standing will get all the cash.

Save for a rainy day? Hell no. We're Albertans!

You are right, they didn't save for the rainy day. Instead they pumped up the salaries of civil servants and teachers to the highest in the country so that all of their counterparts in every other province pointed to them and said...."We want to make as much money as our brothers and sisters in Alberta". Sustainability is a reality *bleep* isn't it?

[fluffy]

The oil companies new the Saudis were going to flood the market. And they know it will be for a while .

If you're correct, what would be their motivation in letting themselves get caught in this present position?

[driveangry]

If you're correct, what would be their motivation in letting themselves get caught in this present position?

I'm not sure that they were caught, the oil companies are rich, lay offs just save them a little money. It won't offset the losses, it just cuts costs.

The one caught off guard would be the Alberta government. They rely heavily on those royalties.

And I'm sure that the Feds were preparing for this because they would be aware of the political reasons of the Saudis.

[fluffy]

I'm not convinced. I think everyone recognized the possibility of a price crash, but it was unexpected in that most appear unprepared for it. Sort of like the way you or I might look at the possibility of losing our livelihood from some debilitating (and uninsured) disease. I'm of the mind that these are exceptional circumstances, and that those who would criticize the Alberta government for not being prepared for the sudden loss of ten billion in tax revenue are likely the same ones who complain about not having enough snow removal equipment to deal with a heavy snowfall that might happen once every twenty years. We'll make it through this, some might have to dig a little deeper in the months to come, and those who are overextended and heavily dependant on oil revenues might feel it even more, but nobody is going to starve.

[goalie]

Oil prices fluctuate so much because of Speculators. Plain and simple. I'm sure the Alberta Government is aware of this.

[Atomoa]

Putting your entire economy behind a single commodity, the price of which cannot be controlled and is easily manipulated by emotion, perception and other peoples foreign policy. Not to mention a past-the-peak limited supply and a rapidly changing (exponentially) technological world. Not the smartest move.

Alberta built a house on top of a questionable hillside in the middle of a forest that hasn't burned in 150 years. They didn't get insurance and while they were making crazy money they hardly saved a penny.

"... Who could have saw this coming?... "

The entire country can be viewed somewhat the same way. The government has pushed the budget back and the 2015 election will be called or delayed on oil news. Our government went around the world talking "energy superpower" for the last 5-10 years but a superpower isn't brought to its knees when a Saudi Prince wants to play games with the market.

http://en.wikipedia.org/wiki/Price_of_o ... production

Most expensive oil to produce in the world!

Who could have thought our oil based economy was vulnerable to oil price fluctuations? - and who reminds the Premier of Alberta to put their pants on before their shoes in the morning?

[HeavyHauler]

Please don't tell me you all think Alberta is in as much trouble as you think?!?! The Oil Sands are a cash cow and are still making the same amount of money as they did before Saudi Arabia decided to F$*# the Oil Business. They simply had to lay off a bunch of non-essential Office personnel and keep the front line people going. Seems like the media/governments scare tactics are working on you.

[Atomoa]

The Bank of Canada dropped the interest rate to .75% due to the oil price drop.

Seems they think so too.

[Partmanpartfish]

It's too bad Alberta conservatives won't take a gander at left wing Norway and learn how to properly handle oil wealth.