But wait, what about the long term ramifications, you ask? How does this impact the rest of my life, the province or Canada? Great questions! Let’s find out;
So what are the long term ramifications of low oil prices? Well, the first impact will be on Alberta’s annual growth, which will slow down to 3% a year, down from the 4.6% we saw law year. The government of Alberta anticipates a loss in revenue of over $215 million dollars. This mean fewer jobs being created and less money being spent on new projects. For those of us graduating, that means that the we are walking in to a possible mine field of a job market. While this will force businesses to streamline their needs and invest in better processes to compensate, that’s tough to do without the right people to implement the strategies.
With a reduced job market, the other option for you is to remain in school till things improve. That means more courses, or taking an after degree or masters program. That leads to more tuition and expenses for you, instead of starting your career. But did you know that many universities invest heavily into oil futures? This means that a portion of the income that universities and colleges use to fund their institutions is greatly reduced from the falling oil prices. The way that they compensate is by increasing tuition and non-instructional fees. According to the Edmonton Journal that could mean an overall increase of 2-5%, depending on the institution, with international students feeling the worst of it with an increase of 10% over the next couple years.
So what can be done about these increases? The simple answer is that gas prices need to increase, but more over we need to find ways to ease off our dependence of oil. Alberta has around another 100 years of worth of oil at the current demand, then we will be without our largest income stream as a province. This not only impacts us as students, the industries like construction, technology, engineering, and many others. But for us as students, brace yourself for the increase in tuition that is being heralded. Start saving those nickels, applying for scholarships, and remember that school is an investment in your future. It’s not all as bleak as I have painted it. And remember to join the Concordia Business Association at their annual conference on March 7th at the Derrick Golf Course. Contact me, Blake Novak, your CSA Management rep for more details at firstname.lastname@example.org. Tickets will be on sale starting the first week of classes.