Light at the End of the Tunnel for Oil Prices

As some IEA analysts predict 2016 prices for crude oil will be more stable at levels of about $40 a barrel. The International Energy Agency's outlook is considered to be the light at the end of long tunnel regarding the future outlook for the Alberta economy. Natural attrition on supply and suggestions of a deal to freeze production at early 2016 levels is what experts in the field predict.

Don't Forget What Goes Down Must Come Up

As the IEA, the global watchdog for the industry makes predictions the positive view is welcome by the oil industry. The market and its subsequent spin-off of jobs in the energy sector could be on the upswing.

History Shows Deep Oil-Price Declines Followed by Recoveries

As the past has shown, and according to Martin Pelletier, CFA, portfolio manager at Calgary-based TriVest Wealth Counsel Ltd. the 79% decline during 2008-09 was followed by a 274% recovery; the 59% drop during 1996-98 was followed by a 244% recovery; the 66% decline from 1990-93 was followed by a 90% recovery; and the 62% drop during 1985-86 was followed by a 273% recovery rate.

Help from the Government

There has been and will be more help from the Federal Government. The Feds have confirmed plans to provide $251.4 million to Alberta under a program designed to help provinces hit by sudden revenue downturns. Since the collapsing oil prices, the fiscal stabilization program provides help to provinces when revenues fall by more than 5% from one year to the next. This 'program money ' is allocated on a per capita basis, at $60 a person.

Bright Lights

This is a good time for the real estate market as people are looking to buy in or upgrade their home before the bounce back. Why not give Chris a call? Tel. #403-680-4479