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Originally Posted by someone123
But when oil and gas dries up Calgary won't have many lasting advantages over other cities. It has some disadvantages in terms of being remote, cold, etc. Companies doing energy research can locate anywhere, including more attractive places like the West Coast or cheaper cities with a roughly equivalent standard of living. Traditionally people have demanded a premium to live in Alberta and that money has come from oil and gas.
I don't necessarily think that Calgary will tank in the future but I won't be surprised if Alberta becomes more of a "new Midwest".
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The advantage that Calgary holds is that it has almost 40 million sq ft of downtown office inventory, low corporate tax rates, and an extremely educated workforce. I currently work for an accounting firm in the city, and the biggest problem that our company is encountering is the inability to retain staff. Oil and gas companies continue to attract the strongest talent not only in our city but across the country.
The energy sector is constantly evolving and I highly doubt that companies like Suncor, Imperial Oil, EnCana, CNRL, and Cenovus will simply roll over and close down the shop when oil runs dry. Based on the knowledge of the oil and gas industry and the established energy sector already based in Calgary, the city will continue to be the energy centre of Canada, whatever that future form of energy will be.
The demand in oil may decrease with the transition to more renewable resources, but oil prices will continue to increase due to scarcity, which will make it viable to continue oil extraction and production in the future. In addition, oil makes up only one half of the biggest industry in Canada. If you can find a more efficient resource to heat Canadian homes in the winter, then I will gladly invest in your energy source. However, I will be using natural gas until that substitute is found.