Watch out for the bitumen cliff
Posted Feb 21, 2013 7:58 am.
This article is more than 5 years old.
A major Canadian think-tank is warning that dependence on the oilsands could end up hurting the economy.
The Canadian Centre for Policy Alternatives says Canada is heading towards a “staples trap”, whereby the more quickly bitumen is exported, the less diversified and productive the economy becomes.
It also warns of a looming carbon trap in which the economy is so closely linked to carbon-producing industries, it becomes difficult to adopt measures to deal with climate change.
One of the reports authors, Canadian Auto Workers economist Jim Stanford tells 660News, it’s time to take the blinders off and ramp up efforts to diversify the economy because the resource boom is not going to last forever.
Peter Linder with Emerging Equities calls the report shortsighted, adding the full potential of the oilsands has yet to be realized both inside and outside of Canada’s borders.
He says if Alberta and Canada were getting full value for its oilsands products, nobody would be questioning its development.
Linder predicts pipeline constraint issues will be resolved in the next few years, and better returns are on the horizon.
