US Domestic Oil Production Decline Good News For Alberta
The decline in US Domestic Oil Production is music to the ears of Albertans. Because Alberta has never diversified away from oil.
The western Canadian province is a one-trick pony. And that one trick is oil. Alberta has plenty of oil. But the last 6 years have been tough as their number one customer went from 5 million barrels a day to over 13 million barrels a day of domestic production.
That increase drove down the economy of Alberta. Office buildings in downtown Calgary became ghost buildings. Residential real estate activity and prices headed in the opposite direction of US oil production. Albertans lost jobs and fled the province for greener more stable grass elsewhere.
This decline in US Oil Production we are seeing right now is the result of a laundry list of micro-events as well as you can only frack so much out of these old oil wells in the US.
At some point, these frackers are putting a dollar down the hole to get a dollar out of the hole. Simple math shows what a terrible business fracking really is.
If Biden clamps down on fracking, we in Alberta better send him a huge Thank You Card!