Plunging petro price is opportunity to diversify dependent economies

Diversify or die? Since few producers comprehend the need to diversify revenue streams when oil and gas prices are high, a secular shift to lower prices may prove the catalyst to force wiser planning. A good piece from David Suzuki reminds us of the clear and present opportunities now at hand:

“With oil prices plunging from more than $100 a barrel last summer to below $50 now, the consequences of a petro-fuelled economy are hitting home — especially in Alberta, where experts forecast a recession. The province’s projected budget surplus has turned into a $500-million deficit on top of a $12-billion debt, with predicted revenue losses of $11 billion or more over the next three or four years if prices stay low or continue to drop as expected. Alberta’s government is talking about service reductions, public-sector wage and job cuts and even increased or new taxes on individuals. TD Bank says Canada as a whole can expect deficits over the next few years unless Ottawa takes money from its contingency fund.
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It’s absurd that a lower price on a single commodity could have such a profound economic impact, but that’s what happens when you put all your eggs in one basket and fail to plan for such contingencies.”

See: Oil prices drop as global warming rises

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