Alberta's long-term prosperity in jeopardy, study says

Alberta's long-term prosperity in jeopardy, study says

Geoffrey Scotton
Calgary Herald
Tuesday, February 06, 2007
Alberta’s overwhelming historical reliance on energy for economic growth, along with expectations government non-renewable resource royalties will decline substantially by 2013, means Alberta is at crossroads that will require longer-term planning to manage the risks, says a new study.The study by University of Calgary energy economist Robert Mansell concludes that strong actions will be required to deal with problems that could derail sustained long-term prosperity, particularly labour shortages, rising costs, water scarcity, greenhouse gas emissions and others.“Without a strong and sustained commitment to meet these challenges, Alberta’s prospects will dim,” said Mansell, the managing director of the U of C’s Institute for Sustainable Energy, Environment and Economy.Mansell co-wrote the paper with another U of C economist, Ron Schlenker.Mansell and Schlenker warn that there is no other sector in the Alberta economy that could replace the energy sector as the key driver of the province’s prosperity. Between 1974 and 2004, the study found, oil and gas provided more than $1.5 trillion in provincial output, or an average of $45 billion per year.That contribution included $280 million in government revenue, or $8.1 billion a year; $600 billion in labour income, or $18 billion a year, and 12 million person-years of employment, or an annual average of 375,000 person years.gscotton@theherald.canwest.com