Can’t help but pass on a positive spin. Really, the only question that remains is, how long before the price of oil accurately reflects supply & demand? There are slow signs of decoupling from the US economy in other major economies (seen the latest figures for China’s auto sales?), hopefully Canada is quicker than most.
Canwest News Service Published: Tuesday, March 10, 2009
EDMONTON — Northern Alberta is the best place in North America to weather an economic storm that’s becoming worse than originally forecast, said Michael Percy, dean of business at University of Alberta.
“When I look down the road, it’s going to be grimmer than I thought it would be for the next year, year-and-a-half. This is going to be an intense downturn,” he told city council Tuesday.
However, Mr. Percy said “there’s no better jurisdiction to be located in than Alberta,” particularly north of Red Deer, because he still expects companies to pump money into oil sands projects as prices improve.
“At the end of the day, so many fundamentals are positive in the case of Alberta, the best strategy is to treat this as short-term.”
Mr. Percy was one of five local experts brought in to give councillors their thoughts on where the economy is heading and what the city should do about it.
The speakers also included ATB Financial senior economist Todd Hirsch, National Bank Financial investment adviser Angus Watt, Melcor Developments Ltd. president Ralph Young and Clark Builders founder Andy Clark.
They suggested falling costs make this a good time for the city to move ahead with infrastructure construction needed as Edmonton continues to grow, especially with interest rates low.
Mr. Clark said his company has 30 projects going on right now, but by the end of the year they only have 10 scheduled.
“I think you’re going to see some pretty hungry builders out there in six months, 12 months more.”
