Written by PAUL STRICKLAND
Citizen staff
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Thursday, 02 October 2008 |
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NORTHERN BC
In addition, Canada's banking system is solid compared to those of the U.S. and Europe, John Shepherd said.
Housing was overbuilt and oversold not just in the U.S. but also in Ireland, England and Spain, and some European banks are also facing trouble in the mortgage crisis that has become international, he said. Canadian banks are in a better position to offer funding to domestic companies, Shepherd said.
The revised bailout plan for troubled Wall Street investment banks under consideration by the U.S. Congress is far from perfect but, if finally passed, will at least get money flowing again and hopefully assist in a U.S. recovery, he said. "Seventy-five per cent of our dimension lumber exports are to the States," Shepherd said.
Prince George is more diversified now than it was during the late 1990s slowdown when economic troubles in Thailand, Japan, Russia and other countries in the Asian Pacific region significantly reduced demand for B.C. exports.
Now India and China need northern B.C.'s oil and gas as well as this region's mineral resources.
"Growth in the Chinese market will keep up demand for our resources," Shepherd said. "To some degree it has been a major factor in driving up demand for raw materials.
"We're a major supplier of oil, gas and metals," he said.
Over the next 10 to 15 years, new trade deals with the European Union will give Canada access to a market of half a billion people, he said. Northern B.C. will benefit from that widened access, and reduce the region's previous dependence on selling into the U.S., he noted.
"Access to Europe would help all our industries," he said. "They need resources -- oil and gas -- as much as the Americans do."
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Last Updated ( Thursday, 02 October 2008 )
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“B.C.'s oil and gas …”
"We're a major supplier of oil, gas
“"They need resources -- oil and gas-- as much as the Americans do."
Do Americans and Europe need more oil & gas? In a looming recession/depression?
Nevertheless, here we go again with those elusive Prince George oil & gas deposits. I cannot understand why any company would want to finance more exploration for high cost deposits at this time when oil could possibly drop to $50. a barrel. I seriously doubt any company could raise more exploration capital on the stock exchange right now. In fact I would bet there’s probably more than a few nervous cowboy hats over in Alberta’s expensive to produce tar sands oil.