The price of oil continues to be soft, and for a short time today it dipped below the 80-dollar-a-barrel plateau.
The slumping price of oil has caught the attention of Alberta’s premier, as well as many in the oilpatch.
After all, oil drives the provincial economy.
Oil and gas executives told Global News major energy projects could be impacted.
But they said the current slump is not significant – at least, not yet.
“I do not see that for sure.” said Roy Sudipto of ConocoPhillips.
“I definitely see these are short-term trends, and companies do not believe in short-term trends,” he added.
“They [energy companies] go by long-term prospects, and long-term prospects are very positive.”
Reassuring words.. but Premier Jim Prentice is watching the situation carefully.
“This has a consequence in terms of Alberta’s finances,” said Prentice.
“It’s going to demand prudence and caution, and its going to demand discipline in how the government is administered.”
Premier Prentice says it’s too to know exactly what the impact will be on the government’s bottom line.
The province recorded a budget surplus based on higher oil prices in the first half of this year.
Some analysts predict the price of oil will hover around the $80 mark for the rest of the year.
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