The recent oil slump is hitting Lloydminster hard.
More than 31,000 people call the city home, and according to residents, nearly all are feeling the effects of the economic downturn.
Jobs have been lost, businesses have shut down and employment insurance is running out. Some people lost their job more than a year ago and still haven’t found work. Middle class families are utilizing soup kitchens for meals, men are shoveling driveways for extra cash and families are wondering and waiting when the economy will rebound.
The city, which sits along the Saskatchewan-Alberta border, is on edge.
---
“A city on the edge” is a three-part series exploring how the recent oil slump is affecting residents of Lloydminster. Click here for part one, which follows a family working hard to avoid bankruptcy. And click here for part three to see how the community is banding together to help one another out.
---
PART TWO: MORE THAN AN OIL ISSUE
The slumping economy is on everyone’s mind in Lloydminster. People talk about it at the grocery store, on social media and at home.
“It’s affected a lot of people in this city and surrounding area,” says Mark Lindskog, a business owner in the city. “You either take a pay cut or lose your job. A lot of people are struggling right now, and we're no different.”
Lindskog owns three bars in the city. At the same time he's receiving stacks of resumes, he’s cutting his employees' hours and he's seeing a decline in business.
“When we first opened, everything was booming. Oil was 100 bucks (per barrel), we had a lot of the sales guys and stuff come in with the expense accounts, and stuff like that. That's long gone now,” he says.
Two years ago, the price of oil was more than $100 a barrel. This year it's hit as low as $29.
According to Evaluate Energy, a company that analyzes oil and gas data, 540 new oil wells were drilled in 2013 in the area surrounding Lloydminster. That number went to 391 in 2014, and last year dropped by nearly 90 per cent with just 49 new wells drilled.
Tough times for all
The slump is affecting everyone — not just oil workers.
“When it gets a little stormy, the climate gets stormy. It's about adjusting the sails, and we’re trying to do that in so many different ways,” says Lloydminster Mayor Rob Saunders.
Saunders says city council and staff wages have been frozen, and the city is implementing cost-cutting measures to save money, like installing LED lighting in city facilities to save on power bills. He's hoping for help from the federal government to fund infrastructure projects.
Others in the community say they've seen an increase in crime since the economy took a turn.
Videos of thefts — from people stealing vehicles and cash to recycling and tires — have been making the rounds on social media. The RCMP say crime has increased in the area, but would not say whether the rise is related to the economy.
“I don’t like to see any increase. For me, it wasn't the happiest moment when I saw those numbers, but it's nothing spectacular that was causing me any grief,” says Insp. Suki Manj with the Lloydminster RCMP.
Still, the RCMP are working to prevent crime with two new programs that launched last month.
One identifies repeat offenders and works to get them help. The other shows police hot spots — where crimes happen and when — which allows officers to patrol at the right times in the right places and to know when to request a helicopter for air surveillance.
House sales cold
People in the city say the slump has no end in sight. Some have been without work for more than year, and many have lost or been forced to sell their belongings. Leaving Lloydminster may seem like a good option, residents say, but making the moves is tough when homes aren't selling.
“We’re down about 40 per cent in the buyer end, which really pulls down the prices of the houses,” says Michael Dewing, president of the Realtors Association of Lloydminster.
Before the slump, about 13,000 homes sold in the Lloydminster area each year. In 2015, less than 900 sold.
This year’s numbers are on track to be even lower. Only 40 homes have sold so far in 2016.
Lindskog, the bar owner, knows how bad things are for some residents, so he tries to help by holding charity events or giving away free meals. He's hoping new promotions will bring in business while allowing others to afford a night out.
“We're not as bad as some other people, but we want to try and help out, so when we can, we're going to,” he says.
