The town in Alberta known for its rapid oil industry growth and downturns is now on the brink of another potential economic upswing. Signs of growth in Fort McMurray are evident through increasing home prices, heightened investments in the oil sector, extensive hiring, and longer queues at local Tim Hortons drive-thrus.
The anticipated growth is largely attributed to a proposed new oil pipeline to the West Coast by the Alberta government, with the federal government expected to declare its national interest on Thursday.
Roofing contractor William Gilbert foresees his business expanding in parallel with Fort McMurray’s growth as more families and businesses settle in the area. Despite not experiencing an immediate surge in business, Gilbert anticipates steady growth and plans to increase his workforce gradually over the next few years.
Recent federal and provincial initiatives aimed at boosting oil production, including the development of a new West Coast oil pipeline by Alberta and Ottawa, have fueled optimism in the region. Environmental policies have been adjusted, regulatory processes expedited for project approvals, and new financial incentives introduced to attract investors.
The Alberta government has set a target to double oilsands production to eight million barrels per day by 2035, further contributing to the positive economic outlook in Fort McMurray.
In the past decade, the region saw minimal economic progress and a declining population. However, this period allowed for essential infrastructure developments. Currently, there is a resurgence in population, reaching record highs.
According to Kyle Vandecasteyen, a council member, construction activities have tripled, resulting in organized chaos as crews struggle to meet the increased demand. While excitement and anticipation prevail after years of economic stagnation, the challenge lies in labor shortages due to the high demand for skilled workers.
The local college is preparing for the potential boom but faces challenges in securing enough instructors to meet the anticipated demand for skilled workers. Housing demand has surged by about 30% compared to the previous year, rapidly depleting the housing supply.
Community members stress the importance of controlled growth to avoid the pitfalls experienced during previous oil booms. The need for infrastructure improvements and a cautious approach is evident as Fort McMurray braces for a potential economic resurgence.