The recent Trans Mountain court case has groups on both sides fired up and stretching the implications. This video from BNN Bloomberg calmly explains that Federal Court ruled against the Trans Mountain pipeline on just two grounds: 1: TRANS MOUNTAIN CONSULTATION: The consultation with a small number of indigenous communities was Read more…
It used to be very clear that Alberta had a spending problem and not a revenue problem. However, since the 2014 oil crash, the world and Alberta have forever changed. Historically, oil ‘busts’ were the result of a downturn in some key economy that reduced the demand for oil & gas products. Today we have the worlds first notable price downturn caused by over production of oil, with no end in site.
This over production was started intentionally by Saudi Crown Prince Mohammed bin Salman in an effort to kill shale oil fracker’s and other non-state owned small players. The idea was to have OPEC lead an over production that would drop the price of oil for a few years and force the marginal upstart players (i.e. US based frackers) out of the industry. Then Saudi lead OPEC would reduce supply and drive the price back up. Well, the Crown Prince was wrong and it didn’t work.
Putin and Russia so desperately want to be a world powerhouse but only has an economy the size of Spain’s, with 20% of its citizens without even running water. The Russian federal government gets nearly HALF of its revenue from oil so when the price drops, they just produce more which keeps pushing the price down.