Related Articles
Forward article link
Share PDF with colleagues

Crude sneezes, the economy catches cold

The benefits of diversification have long been preached by financiers and economists. Those countries too reliant on one industry naturally feel the pain of a limited portfolio. Canada is learning a stern lesson in overdependence

As if falling oil prices weren’t bad enough, a new fear is gripping Canada’s oil patch - contagion. Fallout from the faltering upstream is beginning to trickle down through other sectors of the economy, touching everything from manufacturing to oilfield services to finance and banking. Few have escaped the downturn. For the moment at least, the effects are most keenly felt in the oil-producing province of Alberta, where more than 100,000 directly related jobs have been lost in the petroleum sector alone. Cash-strapped oil companies have slashed as much as C$50bn ($37.44bn) in capital spending, and delayed more than C$100bn in new projects. But as the malaise drags on, the damage could spre

Also in this section
Red Washington, greener states
26 June 2017
Market forces will keep hurting coal, strengthening gas and supporting renewables—whatever Trump thinks about climate science
Saudi Arabia gets a new next king
21 June 2017
Mohammed bin Salman will have a free hand as the next Saudi king but faces formidable domestic and regional hurdles. Oil policy is one
Arab oil states: the devil's in Opec's data
20 June 2017
The group's latest figures show Gulf oil states' earnings have plummeted, while the region's population keeps rising