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Don't be over optimistic
1. Nobody knows if all planned projects will go ahead. If oil price drops to $40 per barrell, many of them will be cancelled ot postponed. In addition, due to the high cost in Alberta, Shell Canada is thinking to build upgrader in Ontario instead of originally planned Fort Saskatchewan. Husky and Total has already delayed their projects by 2-3 years.& Z& L H* k: w+ X! d2 n
2. One upgrader only needs around 500 permanent workers, but it do requires a few thousands construction workers, but those are temporary jobs. And they can work on different projects.
1 ~: t1 p; ^: N0 F; k3. 85K new jobs may be a exaggerated number. There are more oilsands projects going on in Fort Mcmurray, but the total population is 66K. I am not sure how those 5 projects can create so many jobs.4 s- {7 l* e, \5 Z3 s
4. We can assume all projects will go ahead and they will create 85K jobs. But it will take more than 10 years to finish those projects, it means 8.5K jobs will be created every year. That's not a big number. In comparison, 100K new jobs have been created in 2006 in Alberta. The economy growth in Edmonton is 6.6% last year. The forecast is 3.6% for this year, economy is growing much slower, it means there will be less new jobs created. Things may turn out not as bright as you thought.
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The oil price has fell 30% from its peak and the price of natural gas has come down to $6.3 from its peak $14, the impack on Alberta's house market will be felt in 3 - 6 months.
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/ U0 Z* Y4 X" n0 ?. BYou made a lot of money from previous real estate investment. It just means you are in the right market in the right time. But it doesn't mean you will make money in the future. Some invester sbought Nortal share at the price of $3, and sold at $100, but some people bought share at $100, and sold at $3. The real estate banquet is over, now you are taking more risk than ever before. |
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