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Alberta's economy continued making headway in 2004, benefiting the many stakeholders fortunate enough to participate in the Alberta advantage - including the companies that make up the Venture 100. Alberta is now seen as a national leader in several categories of economic merit. In 2004 we boasted Canada's second-highest rate of economic growth at 3.7% (after B.C.'s 3.9%). During this time, we increased our population by 1.4%, maintained the lowest unemployment rate in the nation at 4.6% and created more than 40,000 new jobs.
In terms of Alberta industry, our energy sector continues to impress. We are the planet's fourth largest producer of natural gas as well as the world leader in oilsands development. In 2004, total provincial revenues from the sale of hydrocarbon-based energy totalled $63.8 billion, with $45.6 billion of this amount accounted for as an export. Energy-related commodities represent nearly 62% of all exports. Drilling down into these statistics, we find that natural gas and crude oil account for 50% and 39.5% of hydrocarbon sales respectively. With some experts predicting oil will top $70 US per barrel some time in the next five years, there may not be a slowdown to this driver of our economy any time soon.
Our other natural resource sectors should not be discounted, either. In 2004, our 38 million hectares of forest contributed $5.5 billion of revenue and $3.4 billion in exports. As well, the 51 million acres of land that comprise our agricultural sector generated $8 billion in revenues, creating 22% of the total agriculture production in Canada. Even with the BSE crisis approximately 32%, or $2.57 billion, of this revenue was generated through the sale of beef cattle, which remains higher than any other individual category of farm product sold in our province.
And there's more to the consensus that Alberta will lead the country in economic growth this year than the price of oil. We remain the only debt-free province in Canada, with 11 consecutive years of operating balanced fiscal budgets. The provincial government promotes Canada's lowest overall tax rates, and we have no provincial sales tax and the lowest gasoline taxes anywhere in the country. Furthermore, a positive, stimulating business climate is evident within the province, which in combination with all of the aforementioned factors translates into many opportunities for all Albertans.
Some lingering issues remain which may impede our growth, however.
Skilled labour shortages: The burden of finding skilled labour to fulfill market demand is one that continues to plague the province. Ultimately, our province's ability to attract and retain skilled people will remain a priority. If this situation is not addressed, our economy's true potential may be capped.
The potential of a weakening U.S. economy along with a declining U.S. dollar: These could cause exports from Alberta to the U.S. to diminish, especially in sectors such as tourism and manufacturing. Fortunately, Alberta's energy sector is able to maintain its strong position during most downturns in the U.S. economy given the relatively fixed demand for energy.
The legal settlement of the BSE crisis and the re-opening of the Canada-U.S. border to beef cattle: The long-standing battle between Canadian cattle ranchers and the Ranchers-Cattlemen Action Legal Fund (R-CALF) American lobby group may be compounded with further court hearings in the near future, leading to further pain for producers.
Overall, our prospects remain bright. Amid buoyant energy prices, which show no immediate signs of abating, the province continues to maintain high expectations for future growth. Alberta's economy will likely remain the envy of other Canadian provinces for some time to come.
Go to the 2005 Venture 100 Lists.
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