The PC Caucus congratulates the contributing world powers, but are asking the NDP government to begin to plan for the possible repercussions of putting an additional 1 million barrels of Iranian oil into an already saturated market.
“Our economy – especially our oil and gas sector, related industries and the jobs of hard-working Albertans – have already been undermined by the timing and unknown scope of a royalty review, an unclear emissions reduction strategy, higher business and personal income taxes and a dramatically-higher minimum wage,” said Rick Fraser, the PC Caucus Energy Critic and MLA for Calgary-South East.
“The combination of ill-timed NDP policies, downturn in the economy and further competition for the same markets for our oil and gas products is adding to the layers of economic uncertainty for producers, workers and investors alike,” continued Fraser. “Today, our PC Caucus urges the NDP government to at least slow down its planned policy changes. We’re asking the Environment Minister to moderate her aggressive stance against the oilsands that could create more harm and deepen the current economic downturn in Alberta.”
PC Caucus members noted that benchmark oil prices like West Texas Intermediate have changed very little today on the news of the Iran agreement. However, they also noted that economic analysts expect world oil prices will go even lower in the future if Iranian oil shipments are allowed to resume, at a time when Saudi Arabia continues to increase its oil production. Lower prices could be good news for most consumers, but aren’t good news for Alberta or its economy.