Most people know that the prosperous province of Alberta is going through a recession. What you may not know, is exactly what that means for the oil industry. Letâ€™s take a look.
The bubble burst
With Alberta facing a record deficit, the provincial government is struggling to pump new life into a sagging economy. Thousands of jobs have been lost, people are out of work and uncertain about the future. Alberta has been growing at a steady pace since oil was first discovered in the province and many people believe that the bubble has finally burst. But the situation isnâ€™t as bleak as you might think.
The price of oil
Because the majority of Albertaâ€™s revenue is generated by natural resources like oil and gas, when the price of oil dropped, the whole province felt the effects. But the price of oil is expected to recover. The government of Alberta is currently basing the 2016 fiscal budget on $50/barrel oil but the price per barrel is expected to reach $68 by the end of 2017 (CBC).
Impact on the oil industry
Despite falling prices, demand for oil and gas remains steady. We still need oil and gas to heat our homes, fuel our cars and transport goods. Without oil and gas, store shelves would go empty and our access to consumer goods would be cut off. The industry, despite its setbacks and shortcomings, fuels the economy. Pun intended.
Public opinion of the oil industry has also been negatively impacted by high profile oil pipeline failures, like the Nexen oil spill. And while the spill certainly was a regrettable catastrophe, we have to use it as an opportunity to learn and improve. Failure is an excellent teacher. The Nexen oil spill will push us towards stricter regulations, increased NDT inspection and testing and the development of better spill detection technology.
Stricter regulations will increase the demand for NDT and X-ray inspections and ultimately, make oil pipelines safer and more effective. NDT Companies like 20/20 NDT will see an increase in the amount of testing required, and advances in testing technology like wireless sensors will make future spills less and less likely.
The increased demand for NDT inspection in places like High Level, Alberta and grande prairie ( NDT GP) will also mean that more jobs are created in the oil pipeline testing sector. Careers in NDT inspection have many benefits, an enviable salary and plenty of opportunities for advancement.
If you would like to learn more about the state of the oil industry in Alberta, or NDT inspection and testing Companies like 20/20 NDT, contact us today! 20/20 NDT. Weâ€™re invested in Albertaâ€™s future!