Alberta oilsands area is as rich as the middleast but with more diversity. In fact economists say that "diversity preferable to oil sheikdom"
"The oilsands are as if we had suddenly discovered a new major Middle Eastern oil producer, which... is not actually in the Middle East. It's a wonderful thing," Krugman told the luncheon audience.
However, he added, a diversified economy is much more preferable for Alberta's future development. "You do not want to become an oil sheikdom."
Krugman believes the current oil boom - unlike previous ones in the 1970s and 1980s - is sustainable. This time, the oil price surge is not due to production cutbacks or restrictions, he noted, but rather demand from countries such as China and India that is based on real needs."
The economy is sustainable and the economic fundamentals are very different from those in the early 1980s. Alberta's economy now is unbustable.
