Whether it is tourism, retail or other industries, Alberta’s economy is stalled as non-essential businesses and services are shut down to slow the spread of COVID-19. But the province is facing another financial blow because of the oil price crash.
This story is part of The COVID Economy, a CBC News series looking at how the uncertainty of the coronavirus pandemic is affecting jobs, manufacturing and business in regions across Canada.
This is usually the busiest time of the year inside the factory at Smithbilt Hats as the weather begins to change and people begin to get a bit of spring fever anticipating outdoor concerts, festivals and, of course, the Calgary Stampede.
Instead, the factory, nestled in the heart of the city, sits idle as employees remain laid off because of the pandemic.
It’s the first time the shop has had to close in its 101-year history, according to vice-president Brian Hanson, aside from a few days during the 2013 flood when nobody could access the building.
“That will hurt the whole city if Stampede cancels. Hopefully, we don’t have to do that. That brings a lot of money in for everyone in the city,” said Hanson.
At this point, the Calgary Stampede has yet to make a decision about its annual 10-day event in July, as the organization assesses “what may be probable, possible and not possible with respect to all programming.”
Whether it is tourism, retail or other industries, the province’s economy is stalled as non-essential businesses and services are shut down to slow the spread of COVID-19. But Alberta is facing another financial blow because of the oil price crash.
Talks ongoing
Demand for fuel has plummeted across North America because of the pandemic, while at nearly the same time Russia and Saudi Arabia began ramping up oil production in early March. Oil prices have fallen sharply around the globe, including to record lows in Alberta, where on some days a barrel of oil has sold for nearly 10 per cent of its value in February.
With the majority of oil producers in Western Canada losing money, many companies are struggling to gain financial flexibility as banks tighten up how much they are willing to lend.
That’s why the oilpatch is looking to the federal government for some type of aid package to make