Oh Cana-duh
Land of the 500 dead, oil-coated ducks
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Once-booming oilsands face uncertain futureEDMONTON
The Canadian Press
Dec 26, 2008
Thousands of workers from as far away as the Philippines are watching their jobs in Alberta evaporate as the richest oil boom in the province’s history deflates.
Sinking oil prices have forced skittish investors to hedge their bets on half a dozen multibillion-dollar oilsands projects, leaving one of the key engines of Canada’s economy teetering on an uncertain future.
Ben Stacey, a pipefitter from Newfoundland, was making as much as $70 an hour in the oilsands when he was blindsided by sudden layoffs.
“You can make $70,000 up there in three months,” Stacey, 54, told The Canadian Press from his home back in Grand Bank. “If the price of oil keeps on dropping, you’re going to see a lot of Newfoundlanders on unemployment here and a lot of people selling their trucks.”
The scramble to mine tar-like bitumen and refine it into synthetic crude stopped abruptly after oil prices, which had soared to US$147 in the summer, tumbled below US$40.
“The economy in our town generally depends on what happens in Alberta because of the work shortage in Newfoundland,” Stacey said. “So as Alberta goes, that’s the way we go here in the small towns.”
The province that has been the envy of the rest of the country for years is not doing so well these days. After 15 consecutive massive surpluses, Finance Minister Iris Evans admits Alberta could be heading for a deficit in 2009-10. That’s still relative, however, since the province has billions in the bank that have been saved in case of just such a shortfall.
The steady stream of workers that had been pouring into northern Alberta reversed this fall as nearly every major project was delayed, cancelled or scaled back.
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“The gold rush is over,” said a recruiter, who asked not to be identified, for a large multinational firm. “Up until four or five months ago, there were shortages in pretty much every trade,” he said.
“The higher-paying jobs seemed to dry up all at once this fall, as did the need to bring in people from other provinces and other countries.”
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A recent forecast by the Canadian Federation of Independent Business suggests expectations among small businesses in Alberta are approaching a record low.Something else is different in 2008. The oilsands have been facing a dreadful image problem. International media have talked about how developers are “raping” a swatch of land the size of Florida. And environmentalists in both North America and Europe have taken aim.
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But the cruellest image blow came in April, when pictures of 500 ducks dying in the toxic sludge of an oilsands tailings pond were flashed around the world....snip...