The steep drop in oil prices will lead to some slowdown of economic activity in Alberta, Canada, and the deferral of large capital investments in its oil sands, but Alberta Premier Jim Prentice told CNBC Friday its economy is resilient and will weather the rout.
"This will be a difficult time. We're assuming this will carry on for next 18 months or so and that we'll be in a low-price environment," he said in an interview with "Street Signs."
"We expect there will be some falloff in conventional drilling activity, shale drilling activity as well, clearly, but at the end of the day our economy is resilient."
Canadian rig count is down 13 rigs from last week, to 381, according to Baker Hughes. It is down 240 rigs from last year.
However, oil production is going to increase.
"We'll actually be experiencing production increases over the next two years, notwithstanding low oil prices."