Low natural gas prices hurting Alberta

On the same day the Stelmach goverment is set to table the results of the long-awaited energy competitiveness review, there's report with a poor economic forecast.

The country's biggest bank says depressed natural gas prices will stifle economic growth in Alberta this year.

Senior Vice-President and Chief Economist at RBC Craig Wright predicts our economy will only grow by 2.5 per cent in 2010 which is well below the national average of 3.1 per cent.

Wright also believes the review of Alberta's oil and gas competitiveness comes at a good time, with other energy producing jurisdictions in North America already tweaking their royalty and regulatory regimes.

His report also notes that capital spending intentions in the energy sector are up 8 per cent this year, following a big 41 per cent drop in 2009.

Wright says job prospects and housing starts in Alberta will both improve in the second half of 2010.

He also says while things might not look very rosy this year, next year Alberta will only be second to Saskatchewan when it comes to economic growth.