I shared the news with you recently that there are now *zero* rigs in Montana, but could that change with oil prices topping $61 a barrel for the first time in 2015? That story is below. But first, what implications could the election results in Alberta, Canada- our neighbor to the North- have on jobs here in Montana? Not only is tourism dependent on the strength of the Canadian energy sector, but the mutually beneficial energy sector provides jobs on both sides of the border.
From Politico’s Morning Energy: BIG CHANGES IN ALBERTA
Tuesday’s election has brought big changes to Keystone-loving Alberta, Canada’s government. The Alberta New Democratic Party wrested power from the Progressive Conservative Party, according to projections. The Wall Street Journal explains the energy implications: http://on.wsj.com/1KKV2gG And Maclean’s outlines the NDP’s energy platform: http://bit.ly/1PnS16E
The longtime ruling party of Canada’s energy-rich Alberta province lost its four-decade hold on power on Tuesday, ushering in a left-leaning government that has pledged to raise corporate taxes and increase oil and gas royalties.
The Alberta New Democratic Party swept enough districts to form a majority, taking most of the seats in both the business center of Calgary and the provincial capital of Edmonton, according to preliminary results from Elections Alberta. The outcome was a blow to Premier Jim Prentice’s Progressive Conservative party and one that threatens to roil the province’s economy amid a slump in energy prices.
It was the first general election in the province since 2012 and served as a referendum on Mr. Prentice’s eight-month tenure as premier. The chief issue was a budget plan to raise income taxes while holding the line on spending to compensate for revenue lost largely due to the pullback in the energy sector.
Marketwatch.com: Oil ends above $60 for first time in nearly 5 months
Oil futures rallied Tuesday, with the U.S. benchmark settling above $60 a barrel for the first time in nearly five months as protests at a Libyan oil port fed concerns over supplies.
Karim Rahemtulla, alternative investments strategist at The Oxford Club, attributed oil’s gains to the eurozone forecast as well as the Libya port shut down.
He also pointed out that Saudi oil minister Ali al-Naimi has been quoted by CNBC as saying that no one can set the price of oil, “it’s up to Allah.” Al-Naimi also said he wasn’t worried about the possibility of more oil from Iran if sanctions are lifted. See: As U.S. cuts, Saudi oil-rig counts hit record highs
WHO TV.com: Oil Tops $60 a Barrel for First Time in 2015
Here’s something the world hasn’t seen since December: oil trading above $60 a barrel.
Crude oil crested the $60 mark Tuesday for the first time this year. Traders are buzzing about whether its a sign that the era of low gas prices for American drivers is over.
Flynn also notes that Saudi Arabia released data on its oil sales to Asia that show prices were stable — another sign that Asian demand isn’t as weak as some may have thought.
J. C. Kantorowicz – Great Falls
Thursday, May 07, 2015 7:23 AM
I have always had deep affection for Canada……. My heart lives in Calgary! I had considered moving there in the ’80’s….. I suppose I’m glad I did not.
If Alberta has turned more like British Columbia, Quebec and Ontario….. Does that mean Ian Tyson can no longer sing ballads of the West?