Impact of Falling Oil Revenues Likely Won't Be As Severe In Saskatchewan
15 January 2015
Saskatchewan has more going on than oil, so the impact of oil revenue losses won't be as severe here as it could be in Alberta.
That's according to the Deputy Chief Economist of the Conference Board of Canada, Pedro Antunes.
Saskatchewan will go through some of the turmoil associated with the drastic reduction in oil prices, but the Conference Board is expecting the prices to recover somewhat by the end of the year.
Antunes estimates revenue loss for Saskatchewan oil producers around 6 or 7-billion dollars.
He says oil is Alberta's main industry but in Saskatchewan the revenue losses will be significant but because we have other resources, he's not quite sure how much the impact will be felt.
Comparing the positives to the negatives for the Canadian economy with cheaper gas, Antunes says it used to be that increases were considered a bad thing because Canada is a big transportation economy with a lot of trucking of goods, so it would bring the cost of everything up.
Households will still benefit from some prices going down with cheaper oil and gas, but Antunes doesn't expect it will outweigh the significant loss in revenues overall and the negative ramifications for investment.
(CJWW)
@2015 620 CKRM the source
Source
