{"id":7274,"date":"2015-04-13T05:49:56","date_gmt":"2015-04-13T10:49:56","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7274"},"modified":"2015-04-13T05:49:56","modified_gmt":"2015-04-13T10:49:56","slug":"resource-dependence-could-prove-fatal-for-canadian-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7274","title":{"rendered":"Resource Dependence Could Prove Fatal For Canadian Economy"},"content":{"rendered":"

Resource Dependence Could Prove Fatal For Canadian Economy<\/a><\/h3>\n

Low oil prices are threatening the health of Canada\u2019s oil and gas sector, which in turn, is causing turmoil in Canada\u2019s economy as a whole.<\/p>\n

The fall in oil prices are forcing billions of dollars in spending reductions for Canada\u2019s oil and gas industry. In February, Royal Dutch Shell\u00a0shelved<\/a>\u00a0plans for a tar sands project in Alberta that would have produced 200,000 barrels per day. Last year,\u00a0Petronas put off plans<\/a>\u00a0to build a massive LNG export terminal on Canada\u2019s west coast. Moody\u2019s recently\u00a0predicted<\/a>\u00a0that very few of the 18 proposed LNG projects in Canada will be constructed. Most will be cancelled. The oil industry is\u00a0expected to lose 37 percent<\/a>\u00a0of its revenues in 2015, or a fall of CAD$43 billion.<\/p>\n

That is bad news for Canada\u2019s oil and gas sector. But even worse, Canada\u2019s overdependence on oil and gas will threaten its broader economy now that the sector has gone bust. The severe drop in oil prices has made the Canadian dollar one of the\u00a0worst performing currencies<\/a>\u00a0in the world over the past year. The loonie used to trade at parity to the U.S. dollar, and even appreciated to a stronger level a few years ago, but now a Canadian dollar only gets you\u00a0less than 80 U.S. cents<\/a>.<\/p>\n

Related:\u00a0Top 12 Media Myths On Oil Prices<\/strong><\/a><\/p>\n

While a weaker currency has complicating effects on the economy (it will also boost exports, for example), on balance low oil prices have been an unmitigated disaster for Canada\u2019s economy.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Resource Dependence Could Prove Fatal For Canadian Economy Low oil prices are threatening the health of Canada\u2019s oil and gas sector, which in turn, is causing turmoil in Canada\u2019s economy as a whole. The fall in oil prices are forcing billions of dollars in spending reductions for Canada\u2019s oil and gas industry. In February, Royal […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,1861,1190,4312,1729,4753,781],"class_list":["post-7274","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-canadian-dollar","tag-lng","tag-natural-resources","tag-oil-and-gas-industry","tag-resource-dependence","tag-tar-sands"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7274"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7274\/revisions"}],"predecessor-version":[{"id":7275,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7274\/revisions\/7275"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}