Alberta’s oilsands capital hoping to tough it out
It’s a bellwether of a place, Fort McMurray.
As a result of the collapse in global oil prices, there are fewer new oilsands projects planned for construction in the next few years, fewer people working at existing projects and fewer homes selling in the once- booming northern Alberta city. By November, Canadian Real Estate Association data showed home prices in Fort McMurray had fallen more than 19 per cent to about $519,000, while the city’s realtors, facing an absence of potential clients, were leaving town.
Forecasts don’t offer much hope that oil prices will rebound, either. One predicts prices will average no more than US$ 40 to US$ 45 a barrel next year — not enough to justify new oilsands developments.
Another holds that “oilsands labour demand may never return to historical peaks.” B ut the city and region of 125,000 people have been through these boom-and-bust cycles before, and Mayor Melissa Blake thinks the region can manage through it.
“Friends and neighbours — and unfortunately, some former neighbours — have all been affected by one of our toughest years in recent history,” Blake said during a state of the region address, according to Fort McMurray Today.
She said they will fight and “forge a new path toward prosperity” and expects to “see a pipeline or two approved – eventually.”
So will Fort Mac survive? Despite the brave talk, city politicians cut $ 80 million in planned spending this year to avoid future property tax losses. That was in March, and both oil prices and property values have fallen since that time.