With the price of a barrel of oil dropping almost as quickly as you can say ‘Keystone XL Pipeline', those of us with ties here in oil-rich northeastern Alberta could probably be forgiven for harbouring at least some concerns over the alarming downturn.
As of press time Monday, you could pick up a barrel of Canadian crude for $47.50 according to West Texas Intermediate, an absolutely shocking state of affairs considering the booming prices of 2013 and early 2014.
Of course, with increased oil activity in this area under such energy sector powerhouse corporations as CNRL, Imperial Oil and Cenovus being the basis for commercial and residential growth in the region, many locals have been casting a watchful eye over the dwindling prices, wondering what sort of effect it could have on us here in the Lakeland and our everyday lives.
Well Bonnyville, we do bring some good news on that front. Those of you with concerns that current trends may be following the same path as the infamous early 1980's oil glut can rest assured knowing we have moved way beyond the possibility of companies pulling the plug on operations in northern Alberta.
The newsroom here at the Nouvelle has heard many a horror story from a collection of local residents over the years about what Bonnyville and the greater Lakeland region was like during a time when the price of oil was at its absolute lowest.
While prices in the industry have more than halved in just over 18 months, there is just too much money involved in the oil and gas industry nowadays for our large corporations to shut up shop.
As was reported in the Nouvelle late last year, Imperial Oil suggested the current downturn would have no effect on what the company described as a “long-term operating project” at its site on the Cold Lake Air Weapons Range.
Cenovus Energy, in revealing its projected 2015 budget, did admit it would not be in a position to bring in any new employees with the price of oil at its current state, but the company also said it wouldn't be cutting any jobs at the sizable Foster Creek plant and will be moving forward with multi-billion dollar expansion projects at the site.
Baytex Energy Corp, which holds a heavy oil operation in the Peace River and Lloydminster region, revealed it would be cutting its 2015 budget by almost 30 per cent, but once again confirmed there would be no jobs lost as a result of the price drop.
Simply put, there is too much money invested in the Cold Lake oilsands and indeed the greater Bonnyville area for oil companies to justify pulling out or severely cutting and depleting its operations.
If things were indeed looking bad, the region would not be seeing the commercial growth it is still witnessing today. McDonald's would not have committed to Bonnyville. The new Microtel Inn and Suites and Comfort Inn and Suites would not have invested millions of dollars into setting up shop in the hub of the Lakeland.
This isn't like the 1980's people. For better or worse, these corporations who have had a major hand in making this community what it is today, are here to stay.
