Alberta's oil-based economy experienced boom and bust around oil price fluctuations. In 2005, with oil prices at $60, major pipeline projects were initiated but labor shortages arose. In 2008, prices spiked to $147 then crashed to $33. Currently, media coverage portrays a gloomy outlook but oil prices have risen steadily in recent weeks to around $42, similar to 2004 levels. Surveys show most fund managers remain optimistic about commodities given China's GDP target and role as top global commodities consumer, suggesting oil prices may climb rather than continue downward.

1. Remember what Alberta’s energy-fired economy in 2005 was red hot like in which oil prices was about $ 60. It was a
banner year that some of huge regional projects were initiated. One example is regional oil sands pipelines projects
of $ 2 billion. As a result of initiated larger projects, the cost of driller skyrocketed as well as labour shortages
mounted. Remember what happened in 2008? The oil prices in connotation gone up to moon, $147, and back to $
33, by manipulation of speculators. What about today? The headlines of media are generally full of gloomy
reflections for the Alberta’s gas based economy. Moreover, media has already decided that oil-based economy is
writing off. Despite the glum oriented media’s headlines, oil prices tell a positive story since oil prices increased
steadily in the last couple of weeks, which can be an impact of caused the offsetting weak USA demand with large
cutting off by OPEC. On a year-to-date basis or yearly average, the oil prices are about $ 42 which is the same as
what it was in 2004? The question came to mind if things might repeat it today as happened in 2004? Canvassing
survey, based upon more than 200 fund managers worldwide, shows that just % 6 of those are now underweight in
commodities. In other words, majority of oil sector, % 94, are in a level of optimistic. In addition, investors are
increasingly bullish or expecting an price increase due to the China’s GDP growth target of % 8 for 2009 since China is
exposed today to be world’s biggest consumer of commodities, regardless of what USA’s economy would be probably
like. The bottom line, according to present value of oil price and funder’s expectation, for the future new trend is
clearly up, not down. Consequently, commodity traders are already betting on a rebound whether oil prices might
climb or not.