Of the big cities impacted by the Great North American Oil Bust, Calgary is ahead of the curve, being so heavily focused on oil, particularly on tar sands production, the global high-cost producer. Houston, the epicenter of the oil bust in the US, is more diversified. But it too can no longer shrug off the impact. The oil bust in the 1980s made its way into the broader regional economies via real estate, banks, and unemployment. And Calgary shows that this oil bust is sending out similar ripple effects that will take years to overcome.
The financial bloodletting is far from over in the US and Canadian oil patch.
Courtesy of Wolf Richter, Wolf Street
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