The plunge in oil prices is also being felt outside Alberta, in neighbouring Saskatchewan and Manitoba, where oil is responsible for thousands of jobs.
In these provinces, the governments say, the diversified economies can absorb some of the losses, but in towns that rely on oil to drive business, sputtering prices are already leading to cutbacks and some lay-offs.
In the town of Virden, Manitoba, crude drives the economy. You can see it in the name of the town’s local hockey team, the Virden Oil Capitals.
It’s also apparent in the stands, where oil means jobs.
Restaurants, hotels, car dealerships - all are influenced by money coming in from oil, and suddenly there is much less of it.
“Obviously, if prices keep dropping dramatically, we will see some changes, but it is my firm belief our community will survive this quite well,” said Mayor Jeff McConnell.
One the largest oil companies in Manitoba, Tundra Oil and Gas, has said that, long-term, there is still money to be made here. Short-term, however, there is concern.
There's talk of cutbacks and potential lay-offs, which hinge on first quarter results, expected mid-March.
This problem magnified in Saskatchewan, where small towns and cities that once relied on farming are now energy hubs. There, oil production is second only to Alberta.
“About 500,000 barrels each day coming out of the province, a significant hit certainly from these lower oil revenues,” said Pedro Antunes of the Conference Board of Canada.
The loss is estimate at $6.5 billion. The Saskatchewan government is now revising its budget.
Drilling companies and others that manufacture and move equipment for oil producers are cutting costs, delaying projects and, in some cases, letting people go.
Truck driver Waki Muhange was laid off this week. “There's not much work, so many rigs closed,” he said.
But there is still hope that oil prices will soon be on the rise again, and prairie towns that count on crude will be pumping money back into the economy.
- with a report by Jill Macyshon
