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Low oil prices stress local economy

Jenn Taylor has no problem describing herself as a “long-time oilfield wife.” With a husband who has worked in the industry for over a decade, Taylor is proud of the title.

Jenn Taylor has no problem describing herself as a “long-time oilfield wife.” With a husband who has worked in the industry for over a decade, Taylor is proud of the title.

Taylor, who is from the Myrnam area, is also mother to three children and often acts as mom and dad to her kids, while her husband works away from home, often for weeks at a time. The current drop in oil prices and the effect that a slower economy has had on many Albertans is something Taylor has seen first-hand, with many friends and acquaintances being laid off.

“Most of my friends and family are also oilfield families, as well as my network of oilfield wives,” says Taylor. “Starting last year, right after break-up, when most people would usually be returning to work, is when things started to get bad for most people.”

She recalls that many people were never called back after spring break up, and many that were called have since been laid off.

“Last year, every day I heard about another family whose husband got laid off, sometimes by the dozen.”

Taylor says her family went through the 2008/09 recession also, but this time, the slower economy feels different.

“It didn’t seem to go so bad, so quick, and didn’t seem as drawn out. The prices right now are at a scary decade-low, and no sign of rebound in sight,” says Taylor, adding, “The difference this time, is the frightening amount of surplus the world has, and still pumping. It’s worrisome.”

And given that layoffs started happening nearly a year ago already, Taylor is hearing even worse news.

“People are losing homes, vehicles; families who were generally well off have resorted to using food banks and even selling furniture and possessions to scrape by. Jobs are still being cut, and very little seems to have changed in the recent months, more job losses, and no jobs created.”

Taylor says that so far, her family is “one of the very few lucky ones.” Her husband has been able to work all year, and continues to work. But, if the price of oil continues to suffer, the family’s situation could quickly change.

Taylor says it’s hard to rationalize with people who aren’t in the oil industry, with many of them saying those working in the oil industry should have saved more while times were good.

“The thing is, people don’t realize that many have been without a job for a year now. Savings dry up, regardless of how prepared you were 12 months ago.”

And although the loss of possessions can hurt, Taylor says it’s even hard to hear of the loss of life.

“Suicide rates are up dramatically, rates that are undoubtedly connected to the loss jobs, stress and financial crisis sweeping our province,” says Taylor. She adds that the loss of life in work site accident, or in accidents that happen driving to locations, is also devastating.

Taylor has also felt this loss on a personal level, with her friend’s husband being the victim in a fatal accident while driving to a location at work, earlier this month.

As a way to deal with the loss, Taylor sat down and put her feelings into words. She wrote a poem called “The Price of Oil”, and posted the poem to social media. The poem quickly went viral with nearly 630 shares on Facebook as of late last week.

The poem speaks of the low price of oil, per barrel, but the high costs involved when lives are lost and sacrifices are made. Taylor was contacted by various media organizations after her post went viral.

“I never imagined it would blow up that way, but I’m certainly proud of it.” She says of the poem. Many people have contacted her, thanking her for sharing her thoughts and acknowledging those who work hard.

Lakeland MP Shannon Stubbs says the Conservative opposition continues to voice its concerns about the slumping oil industry. After spending a month at home over Christmas, Stubbs says she has heard a lot of concern from constituents about the economy.

She says her main message in Ottawa is that “ this is a crisis that is not just isolated to Alberta. It’s a downturn that will be felt right across Canada. No province will be immune to the negative impacts.”

The Conservative MPs bring up the economy and Alberta’s oil industry on a daily basis in Ottawa, says Stubbs, who has personally been asking the Liberals questions on how the government will respond.

She says she is frustrated by the mixed messages from the ruling party’s members, with Prime Minister Justin Trudeau telling the world one thing, and ministers telling Canadians other things. Stubbs feels that what ministers and the Prime Minister say can have a direct impact on the economy, and can turn business away from the country and create further instability.

Businesses will move to more predictable business climate, says Stubbs, who also believes that “A strong Alberta is a strong Canada.”

Although the economy was showing signs of slowing down prior to the Liberals being voted into power, Stubbs believes the difference now is that the Conservatives used to be proud of Alberta’s energy sector. She doesn’t feel as though the Liberals share in that sense of pride.

One of the major projects that have been discussed is the Energy Easte pipeline that would travel from Hardisty, Alta., across the country to Saint John, New Brunswick.

Construction was set to begin in 2018, but due to recent federal regulation changes, approval of the line may not happen until mid-2018. The regulations will put more focus on greenhouse gas emissions, and extended the deadlines for reviewing and deciding on both the Energy East and Trans Mountain oil pipelines.

The changes are being made to “rebuild Canadians’ trust in our environmental assessment processes,” according to federal Environment Minister Catherine McKenna. The process will look at the economic impact, environmental impact, and social impact of a project, before a decision is made.

Alberta Environment Minister Shannon Philips said she supported the changes.

“If those two pieces can lead us to a positive reception and, in fact, a decision on these pipelines, then we welcome that,” said Philips.

A number of Montreal-area mayors have spoken out against the line, while many in western Canada are speaking in favour of the Energy East line.

Stubbs says it’s “ridiculous” that municipalities and other provinces are rejecting a pipeline to bring Canadian oil to other provinces, while those provinces are accepting oil from foreign markets.

She describes Energy East as a “nation-building project,” and something she believes all Canadians should support. She adds that one of the things many people aren’t aware of is that the pipeline is already-existing line, and the only new portions would be built in Alberta and New Brunswick.

Stubbs believes transporting oil by pipeline remains one of the safest routes.

When speaking about the industry and economy in general, Stubbs says the tragedy is that there are many people who are already suffering and feeling “deep anxiety” about their futures. The domino effect is also being felt in other sectors, and that ripple effect will be noticed clear across the country, she says.

Wildrose MLA Dave Hanson agrees with Stubbs’ statements regarding the Energy East pipeline. He says there are a number of factors at play, resulting in the dipping oil prices, and global state.

“We need market access, plain and simple,” says Hanson. He also supports the safety of pipelines, saying statistically, the thousands of kilometers of pipeline that exists in Canada is much safer for transporting oil, compare to the railroad.

Hanson believes Canadians are going to realize how many the energy sector in Alberta drives the rest of the country.

“We need to get things rolling.”

Hanson says through his work in the industry, prior to being elected as MLA, he made a number of connections in the industry. He has heard of one towing company in the Lakeland that is repossessing two to three vehicles a day, which is a sure sign of people struggling to pay their bills.

“We need to get Alberta back to work.”

Below is the poem Taylor wrote:

The Price Of Oil

A barrel’s at a decade low,

Jobs are Far and few between,

Not counted in the price of oil,

Are the Men behind the scenes.

Yesterday another life was lost,

In a dangerous oilfield life,

Nothing left but memories,

For his children and his wife.

Those who bash the oilfield,

Have no idea just how far,

Our men are willing to push themselves,

So they can heat their homes and drive their cars.

And yet now another Rigger,

Is called to paradise in the Sky,

A barrel might not be worth much,

But the price of oil is very high.


Janice Huser

About the Author: Janice Huser

Janice Huser has been with the St. Paul Journal since 2006. She is a graduate of the SAIT print media journalism program, is originally from St. Paul and has a passion for photography.
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