Things might finally be looking up again for an oil and gas industry that has left Alberta’s economy in near decimation. With the approval of a few new projects, like the liquid natural gas (LNG) plants, that could bring billions of dollars of investments back into Western Canada, Alberta’s oil and gas industry may be in the beginning stages of an economy-lifting boom. But will it also mean affordable energy for Alberta’s consumers?
It was predicted early on that 2016 would see the recovery of the oil and gas industry, and as the industry begins to see some new potential for growth, in addition to a slight recovery in oil prices, that prospective recovery may actually become a reality; however, that has left many businesses and homeowners alike wondering what this will mean in terms of finding affordable energy.
If a drop in oil prices caused the economic crash, then won’t a recovery mean prices have to go up, too?
Ultimately, what an oil and gas recovery means is increased stability for the oil and gas industry, and that increased stability should actually help keep affordable energy available for Alberta’s residents. As studies have shown, there are three factors that can drive oil and gas prices up: supply, demand, and fear. Restricted supply combined with increased demand can drive energy prices up—for obvious reasons.
However, the wildcard that gets thrown into the mix is fear. Fear creates instability, and that instability can fuel a recession. If future supply seems worrisome, then investors are going to pull out. It’s much more advantageous to invest in an industry or economy that has little to no uncertainty, and thus lower risk. As investors pull out, the economy loses—and those losses represent a much more significant impact than the drop in oil itself. In other words, an unstable economy can drive energy rates through the roof as companies look to consumers to compensate for a loss of income and security that results from lost investments.
In other words, an oil and gas recovery should mean increased stability, less fear, and more affordable energy for consumers.
Of course, an economy that is attempting to pull itself out of a recession as extreme as that under which Alberta has been struggling can still be unpredictable. Potential for growth doesn’t actually mean growth—or stability—until it starts to become a reality, and because of the uncertainty that still abounds, it is important that you know how to protect yourself—and your affordable energy rates—from suffering new detriment.
Comparing affordable energy rates and plans among companies can help. Don’t resign yourself to the fact that energy prices are going to be unpredictable. There are a number of energy plans out there that offer the affordable rates and stability you need to help your home or business recover from Alberta’s recent losses. Many energy providers have created plans specifically for the energy needs of large businesses, but some are designed for small businesses and start-ups, or medium-sized businesses, too. Finding the right provider—and the right plan to meet your specific needs—can go a long way towards helping Alberta’s economy simply by helping the core of its foundation—its citizens—to succeed as well.
