• In the 2001-2015 period, world commodity prices fluctuated in response to economic cycles
and changing demand in the emerging and advanced economies. Between 2001 and 2014,
the price for West Texas Intermediate (WTI) oil climbed from $25.9 (US per barrel) to
$93.0 (US per barrel). However, WTI dropped to $48.7 (US per barrel) in 2015, in response to
an increase in the supply/ demand balance in the oil market. Adjusted for inflation, oil prices
grew by 88 per cent over the review period.
• Investment intentions in Alberta adjusted for inflation rose by 106 per cent between 2001
and 2015. Investment intentions rose in response to higher commodity prices and strong
demand for additional residential and non-residential space.
• In this period, Alberta’s provincial GDP rose 46 per cent, from $199.4 billion in 2001 to
$298.0 billion by 2015 (at 2007 price level). Investment spending was an important
contribution to the GDP growth.
• Price fluctuation resulted in corresponding fluctuation in revenues and capital spending,
which caused economic activity to fluctuate.
Investment by Sector and Industry
• Residential investment indicates the expenditures on residential structures and residential
equipments, while non-residential investment indicates the expenditures by businesses on
capital such as commercial real estate, equipment, and machinery.
• Capital investment was the largest contributor to Calgary’s economic growth between
2001 and 2015.
• However, low energy prices resulted in declining investment in 2015 and it is expected to
remain a drag on economic growth in 2016 as energy investment continues to decline.