The Edmonton Branch of Eagle held a Contractor Appreciation event just last week in Edmonton and I always enjoy the opportunity to meet those who share the front line of the IT contracting world. And as usual, while much of the chatter involves getting to know everyone just a bit better, there comes a point in the conversation where the inevitable happens and the discussion turns to the market and what our predictions are for the short and long term future of the economy. And a big part of the discussion this time around centered on the situation in the oil patch.
First off, Edmonton is not Calgary. Edmonton’s economy is more diversified and less directly impacted by the low price of oil. We have a large public sector that spends massively in health care, infrastructure and education. There is a thriving small to medium business sector that provides all kinds of products and services and employs a large number of Albertans. But also true is that the funds that the public sector uses to fund its projects comes from revenue directly related to the resource sector and many of those small to medium sized business’ products and services are directly targeted at the oil industry. So it was no surprise that the question being debated amongst a number of attendees was just what was going to happen to the price of oil.
This article written by Peter Tertzakian for OilPrice.com uses the analogy of the fashion world to describe why oil prices might just be ready to ascend. Given how interesting and relevant it is to the discussions I had just last week with independent contractors in Edmonton, I thought I’d take the opportunity to share it with all of our readers on the Talent Development Centre: