Large volume layoffs and a stream of falling house prices- these are a few of the many outcomes faced by Albertans due to the decline in oil prices. Alberta is going through a recession which is causing the trickle-down effect from high oil companies all the way to delivery companies. Companies are shutting down, businesses are being forced to close and individuals are losing jobs which has resulted in a negative impact on delivery companies. Analysts have stated “more energy firms may have to cut staff, having already laid off thousands,” (Markusoff, 2016) reflecting the high rate and volume of unemployment. The decrease in expenses to save costs by individuals and companies effected by the economy have lead to a decrease in unnecessary purchases that typically are delivered and are instead being replaced by manually purchasing and picking up products consequently ending the need for delivery of merchandise.

People are getting laid off which is resulting in an economic change in lifestyles in order to sustain their well-being including giving up purchased and delivered goods until some glimpse of economic growth is in sight. It has caused business owners to move their businesses elsewhere or find other methods to have their items delivered which in return has affected the opportunities, growth and overall business functions of delivery companies possibly leading them to close down.

The oil industry is extremely volatile meaning a corporation could benefit by the millions one day, and then cost them the same amount the next day. Unfortunately, Alberta’s economy is dependent on the oil industry and is Alberta’s primary source of economic gain therefore is significantly impacted by all changes. The oil industry is in a slump and the crude oil has dropped significantly. The WTI Crude Oil was checked on the New York Mercantile Exchange on February 29, 2016 at 8:04 p.m. and the price of a barrel has dropped down to 0.50% (CNBC, 2016). The factors of the decline in price of a barrel of oil are due to the strong U.S. dollar, Organization of the Petroleum Exporting Countries (OPEC), oversupply of the crude oil, declining demand and the Iran nuclear deal. It will take years before Alberta can build up what they previously had prior to the recession.

Please check the link below to follow the Crude Oil live.

CNBC. (2016). WTI Crude Oil. New York Mercantile Exchange. Retrieved from http://data.cnbc.com/quotes/@cl.1

Markusoff, J. (2016). The Death of the Alberta Dream. Macleans. Retrieved from http://www.macleans.ca/news/canada/the-death-of-the-alberta-dream/