Oil & You: Is the Price of Oil Affecting Your Financial Future?

The Problem
The price of crude has fallen to $47.93 a barrel in recent weeks; the last time sub-$50 oil was witnessed was mid-2009, a time infamous for wide-spread economic turmoil around the globe. Today, it’s not uncommon to see gas prices at the pump hover around $1.00 or less a litre as you’re headed to work early in the morning. In a world of $1.35 per litre, Canadian’s have responded well to such advantageous conditions.

Great for the consumer? Perhaps; in the short term, commuters will see a clear benefit with a lower spend on gas and more money in their pockets, as a result. However, this boon will likely be short lived with economists warning that a downturn in the economy, further aspirated by cuts and declines in the energy sector, could be eminent. Despite rising US demand for petroleum and petroleum-based products, the outlook for oil sands jobs is looking dire. Suncor, one of Canada’s energy giants, has already cut 1,000 jobs in January while trimming spending by $1 billion due to the poor performance of oil.

Alberta’s growth has been unprecedented, but with such a high reliance on oil and energy production, it comes to no surprise Albertans have been hit the hardest financially. As a result, one in five energy companies are looking to cut jobs as part of their yearly performance forecasts. It’s a number one can only expect to rise at the cusp of a potential economic downturn; even

if much of the energy sector’s workforce finds the motivation to return to their provinces and industries, Brad Smith, executive director of Mainland Nova Scotia Building Trades, fears many will not find solace – or jobs – when they return.

If this story sounds familiar, hits close to home and you’re in search of answers with piling financial burdens, you’re not alone. Your career outlook may be in question, but your financials don’t need to be.

Your Solution

So, what does this mean for you? If you’re working in the oil sands, or looking to return when the career outlook improves, it means the world to you and your family. Worrying about your current or future job security isn’t the best use of your time; it’s up to you to take action, especially if you’re in debt and in need of a partner that knows just how difficult emotionally and financially the entire experience can be.

No matter what lifestyle you might have or had, these unexpected situations can test our relationships as well as our wallets. If you’re behind in bill payments, borrowing from multiple, high-interest lenders, or making advance pay-day loans, you don’t need a debt consolidator or financial advisor: you need a friend. You need someone who doesn’t only know the landscape with experience on their side; you need someone who can listen and understand exactly where you’re coming from.

New Beginnings Resource Center can help, no matter the situation. If you’re on the brink, getting calls from creditors and collectors, we know how to help you achieve peace of mind while delivering concrete results that will help you – and your family – resolve your financial burdens.

Be sure to visit our contact page to sign up for a complimentary, 1-hour consultation where we can assess any of your concerns and set you on the right path. Feel free to email us with any questions or concerns and it would be a pleasure to assist you at this difficult time.

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