Mark Carney, present Bank of England governor, former Bank of Canada governor thinks we're in a fossil energy price bubble. If the world reaches a global climate deal, fossil fuel reserves are "unburnable" and therefore pretty much valueless. Indeed, divestment is already fast catching on.
If this happens, the Tar Sands, Canada's single economic bet, becomes nothing more than icky oily sand of use to no one.
Tell me, if you're Canadian and Albertan governing party, do you think it's smart to gamble on the sustained value of your giant pile of toxic sludge? Kinda gives new meaning to the term "toxic asset".
We smugly thought we were awesome in Canada because we didn't have the over-leveraged banks due to stricter regulations when the US and much of the world shat themselves when they realised they'd invested in a US housing-debt bubble. It's how Mark Carney got his current job. I don't know what the economists would say would happen to Canada if the price of Alberta oil fell through the floor, but I doubt it would be fun...
You know, the opposition parties could make this an election issue.