Albertas energy industry, government watch nervously as oil prices hit 4-year low [Video]

“This isn’t a crisis for the industry yet. The bigger problem will be for the Alberta government in its deficit.”

That’s how Richard Masson, an executive fellow at the University of Calgary’s School of Public Policy, sums up the impact of plummeting oil prices that fell to around $57 U.S. per barrel on Monday — the lowest in four years.

While the low prices have also led to drop in gasoline prices, it is the broader economic impact that both industry and government are concerned about.

The government of Alberta forecast a deficit of $5.2 billion for this fiscal year under the expectation that oil prices would average about $68. per barrel of west Texas crude (WTI) — and that’s without knowing the impact of U.S. President Donald Trump’s tariffs on the Alberta economy.

While the selling price for most Canadian oil, known as western Canada select (WCS) — which normally sells …