The Canadian oil and gas industry suffered another blow on Sunday, October 25, when Cenovus Energy Inc. announced a $3.8 billion merger with 82-year old Canadian oil and gas company, Husky Energy. Headquartered in Calgary, Alberta, Husky is projected to lose up to 25% of its workforce as a result of the merger, approximately 2,150 jobs – mainly in Calgary. 

The news, which fell on Alberta’s increasingly restless population of unemployed workers and struggling families, many of whom believe Alberta has been left out in the cold for far too long already, has fueled ongoing discussions of a provincial brain drain. 

Simply put, brain drain is defined as “the departure of educated or professional people from one country, economic sector or field, usually for better pay or living conditions”. Recent statistics show this concept is rapidly gaining traction in Alberta as residents seek to escape the increasingly grim economic landscape to pursue opportunities elsewhere, beyond the provincial borders. 

As Canada’s largest producer of oil and natural gas, Alberta is no stranger to the boom and bust nature of the industry, experiencing cyclical periods of economic prosperity influenced by global conditions followed by detrimental crashes and ensuing hard times. Prior to this year, Alberta experienced a major economic crash in 2015, with the Canadian oil and gas industry suffering a $91 billion loss in revenue and layoffs reaching 35,000 workers in Alberta alone (1).

In the last 5 years, countless Albertans have struggled to regain their footing on shaky economic and political grounds, suffering substantial losses and insecurity. In this setting, the catastrophic impacts of the global COVID-19 pandemic, coupled with pipeline delays and ongoing cuts in the Canadian oil and gas sector have left many Albertans with the feeling of being kicked while already down. 

According to the Government of Alberta Economic Dashboard, the price of oil for many Alberta oil producers fell 36.6% from September 2019, averaging $28.43 USD per barrel in September 2020, according to the Western Canada Select (WCS) price. The coinciding unemployment rate in Alberta was 11.7% in September 2020, down from its 15.5% spike in May 2020, but still 6.6% higher than in September 2019 (2).  

At this point, it seems a number of Albertans have simply had enough. According to The Alberta Annual Population Report 2019/20, “Alberta’s interprovincial migration patterns are heavily influenced by the economic conditions in the province, and as the economy cooled, the province experienced net outflows.” The report shows that 2,733 residents left Alberta between April and June 2020. 

The loss of another 2,150 oil and gas jobs as a result of the Cenovus merger comes as a disappointing yet predictable defeat for industry workers who have remained “down on their luck” for many years in Alberta. Effectively decimating industries worldwide, the pandemic has also successfully pulled the rug from beneath Alberta’s shaky footing, tanking oil and gas once more and leaving countless skilled workers with nowhere to go but out.

For more stories, visit Todayville Calgary.

From ZDoggMD

Our pandemic response has generated untold fear and untold harm to our most vulnerable communities. Here’s a possible way out.

Dr. Monica Gandhi is a UCSF professor of Medicine in the division of HIV, infectious diseases, and global medicine. Her current research involves masks and their effects on COVID disease severity.

Here’s our prior interview on her mask hypothesis.

In this interview we talk about the effects masks and mask mandates may have (distinguishing correlation from causation), masks and herd immunity, how our current climate of fear has punished poor people, the “strata of fear” that your social group resides in, and much more.

The last 2 1/2 minutes of this interview reframe the entire message so poignantly…please watch and share with those both in, and out, of your “strata of fear”…