Understanding Oil and Gas Lodging Markets in Western Canada

Western Canada, specifically Alberta, Saskatchewan, and northeastern British Columbia, is in the midst of another energy boom. The price of oil has remained relatively stable since recovering from the lows experienced during the global recession, providing some comfort to oil producers. This has resulted in an increase in oil drilling and the revival of deferred oil sands development projects. Lodging markets that are wedded to oil and gas developments often depend almost exclusively on the energy sector for their demand; however, oil and gas related activities generate lodging demand in different ways depending on the type of resource being exploited and the nature of the activity. This article provides an overview of the different types of oil and gas lodging markets located outside of the major urban centres and what affects the lodging industry in these areas where the actual energy drilling, development, and activity takes place. In addition, the outlook for these markets is discussed.

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