https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g By Adam Schmoetzer en-us 2021-03-24 17:15:26 UTC 2026-01-23 20:50:25 UTC hello@padlet.com https://padlet.net/icons/png/26fd.png adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349148124 Greetings. In this presentation, I will discuss the ongoing oil crisis with an emphasis on how Alberta has been affected.]]> 2021-03-24 17:19:25 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349148124 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349159619 This video by CBC’s The National explores the impact of the oil crisis on the small Alberta town of Drayton Valley, which sent 6,800 letters to Prime Minister Justin Trudeau in December 2018 explaining how the formerly prosperous town is negatively impacted by low oil prices. I chose to include this video in my presentation because it vividly illustrates the plight small businesses face because of the crisis & the Alberta economy’s heavy reliance on fossil fuels. I found the discussion of how eastern Canada favours imported oil from nations such as Saudi Arabia over energy from the same country to be especially illuminating.]]> 2021-03-24 17:21:34 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349159619 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349258139 Another clip from CBC’s The National, this one discusses how the precipitous drop in oil prices in early 2020 further damaged Alberta’s oil-based economy. This devastated several major important energy companies & eradicated billions of dollars of wealth; Cenovus was hit particularly hard, losing more than half of its market value. One important point raised in the video is that it is easy to assume that this problem only affects Alberta when its impacts have dire implications for all of Canada. Another theme discussed in the video is Western alienation – the people of Western provinces (most notably Alberta) often express disillusion with their role in Canada.]]> 2021-03-24 17:39:54 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349258139 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349367602 In this video, then-Alberta Premier Rachel Notley discusses plans to boost Alberta’s economy by building a new oil refinery. This video also discusses the root causes of the oil crisis in more detail. One reason for this is the price differential (the lower price of Canadian oil compared to American oil). This exists because Canadian oil is more expensive to refine. Another factor is transportation – the farther oil is transported, the less it is worth. This became an important factor in November 2017 when the Keystone pipeline spilled in South Dakota. This caused Albertan oil facilities to fill up, leading to a surplus & price drops.]]> 2021-03-24 18:00:16 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349367602 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349374775 This video discusses the history of the oil industry in Alberta. It begins by noting that the average price of oil in 2019 was significantly lower than it was prior to the 2008 recession, when oil prices cratered. It then notes that the current crude oil market is even weaker now than it was during the recession, turning negative in April 2020 for the first time in history. This resulted in sellers paying prospective buyers to take their oil. One reason for this is the travel restrictions imposed by the ongoing COVID-19 pandemic, causing demand for crude oil to drop precipitously. This illustrates the fact that the laws of supply & demand apply to oil just as much as any other commodity.]]> 2021-03-24 18:01:44 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349374775 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349432123 This CBC article discusses the early history of the energy industry in Alberta. The province’s first major strike occurred in 1947, but the industry really took off in the 1970s after Middle Eastern oil producers reduced their oil consumption as leverage to reduce foreign commitments to Israel. This resulted in oil prices increasing fivefold overnight & Alberta’s population increasing by a third. This success ground to a halt in the early 1980s when Dome Petroleum was bailed out & unemployment more than doubled. The province would start returning to its previous success in the late 1980s & early 1990s when royalty revenues were used to expand into the lumber industry. This illustrates the fact that the current situation is not unprecedented or necessarily permanent.]]> 2021-03-24 18:12:29 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349432123 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349501839 In this article, environmentalist advocates Vanessa Corkal & Aaron Cosbey argue that bailing out the energy industry is the wrong approach to take during the ongoing COVID-19 pandemic. They maintain that an appropriate emergency response should address the underlying causes & achieve crucial public policy goals. They argue that bailing out the energy industry does not meet the first criterion since it was struggling long before the pandemic. Finally, they argue that the province should instead invest in industries such as healthcare & renewable energy that will be more resistant to future shocks. In conclusion, this article illustrates the need for Alberta’s economy to diversify.]]> 2021-03-24 18:25:57 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349501839 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349556726 This article discusses Alberta Premier Jason Kenney’s negative reaction to President Joe Biden’s 2021 executive order revoking the permit for the Keystone XL pipeline, calling it a “gut punch” and “an insult directed at the United States' most important ally and trading partner”. It also includes unfavorable reactions from other Canadian politicians & businesses, including Prime Minister Justin Trudeau. University of Alberta political scientist Greg Anderson argues that the province has more pressing issues than the pipeline. This illustrates the fact discussed in the previous article that the Alberta economy must diversify if it is to survive in the long term.]]> 2021-03-24 18:36:43 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349556726 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349620909 This article details Alberta Premier Jason Kenney’s attempts to diversify the province’s economy in the wake of the ongoing COVID-19 pandemic His plan includes the delay of a business tax cut, $10 billion for infrastructure spending, $175 million in assistance to startups & the creation of an agency to encourage companies to do business in the province. Kenney initially promised to maintain a balanced budget, but the pandemic has forced a change of plans. Yet again, this illustrates the need for Alberta to diversify its economy; in fact, the province arguably should have started this process well before the pandemic hit.]]> 2021-03-24 18:50:14 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349620909 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349662466 This graph illustrates how Alberta has fallen behind Texas in oil production over the last decade. This phenomenon was further exacerbated by the ongoing COVID-19 pandemic & the mass unemployment occurring as a result.]]> 2021-03-24 18:59:12 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349662466 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349677775 This graph vividly illustrates how oil prices sharply dropped in 2014 & have yet to fully recover. Note that the all-time low occurred after another precipitous drop during the ongoing COVID-19 pandemic.]]> 2021-03-24 19:02:43 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349677775 adamschmoetzer https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349695566 1. I was surprised to learn that booms & busts in Alberta's energy industry have occurred before.

2. I am interested in politics & public policy, which includes energy policy.

3. I would emphasize the importance of diversifying your portfolio - a lesson just as important for individuals as it is for major industries.]]> 2021-03-24 19:06:53 UTC https://padlet.com/adamschmoetzer/rnfbzw1dh1qt476g/wish/1349695566