As business leaders in Alberta, you know this better than most because you are experiencing it first-hand. At the Bank we have committed a lot of resources to understanding the impact on the economy of the drop in prices, and so I thought it would be helpful to share some of our insights, from a macro perspective, into the adjustment we are facing.
Oil prices alone are down by well over 60 per cent since the highs we experienced in mid2014. Given the supply dynamics that we are currently faced with, it is highly unlikely that we will see those levels again in the coming years. While this price drop is affecting all Canadians, it is being felt most acutely here in Alberta and other oil-producing regions.