Oil is making Alberta's economic engine run smoothly enough to call the current upswing a boom, says one of Canada's major banks.
A report from RBC Economics says Alberta's economy launched into a "remarkable expansion phase" in 2011, with real GDP reaching an estimated 4.2%, and the momentum expected to continue in 2012-13 at 3.9%.
The national average for GDP growth last year was 2.5%; it's expected to remain similar at 2.6% for 2012-13, say experts.
Last year, while still considered a leader in growth, Alberta was edged out slightly by Saskatchewan -- benefitting from potash and high grain prices -- and Newfoundland, benefitting greatly from oil.
With 4.7% growth forecast for next year, only Saskatchewan is expected to exceed Alberta's growth.
But while oil is doing well, Alberta's economy is taking a hit with natural gas, reports RBC -- a sentiment echoed by Greg Stringham, vice-president for the Canadian Association of Petroleum Producers (CAPP).
"It's a fairly accurate portrayal of what's happening in the oil business," said Stringham of the report, but added, "Natural gas still struggles."
Prices are at a record low for the last decade, he said.
However, Stringham said energy sector investments are expected to rise to pre-recessionary levels in 2012.
The RBC report shows Alberta was churning out jobs last year, with 99,000 new jobs added -- more than half of all jobs created in the country.
It said rapid production in unconventional oil is being boosted by massive investments in the oilsands, with unconventional output expected to surge by 16% this year.
