<strong>Boom Bust Economy and Social-ecological System Relationship</strong>

Abstract

This paper reports on the changing dynamics of a small town&amp;rsquo;s social-ecological system (SES) concerning oil and gas industry boom-bust economic cycles and both the vulnerability and resilience of the town over the past 30 years. With the goal to understand how resource-based single industry impact social-ecological systems, we developed indicators of human and environmental well-being and assessed them. Seven indicators include labor force distribution, education, oil price, household income, water quality, air quality, and land cover land use. Over this period, Drayton Valley, Canada quadrupled in size, with more than 20% of the population working in the oil and gas sector. Median income rose to 42% above the national average despite the population lagging national benchmarks for educational attainment. There have also been dramatic fluctuations in levels of fluoride, phosphorus, and other chemicals in water quality samples, implying a correlation with fossil fuel extractive activities over this period. Land cover land use change analysis shows a decreased area of water bodies, wetland, and forests, and increased built capital and agricultural land. While economic boom cycles have led to cash inflows, an exclusive focus on the benefits of the oil and gas industry may leave those dependent on the industry vulnerable to social and environmental risk factors during bust cycles that are beyond their control in the everchanging global oil economy. This phenomenon which has been referred to as the &amp;ldquo;resource curse&amp;rdquo; suggests the need to anticipate cyclical (or more sustained) periods of low levels of oil and gas production. These results suggest that single boom-bust economies impact every aspect of social-ecological systems. Therefore, a sustainable development plan that comprehensively considers not only economic growth, but also diversification, environment protection, and strategic land use planning is indispensable to ensure the long-term development of communities that depend upon extractive industries.

Researching Multisystemic Resilience: A Sample Methodology

“…The monitoring measures and field equipment used were chosen for their educational potential, as well as their appropriateness of use in each study community, their availability, affordability, reliability, and safety (Liu et al, 2020). Water quality in Drayton Valley, for instance, was monitored using the YSI Multiparameter with Quatro Cable to measure pH, conductivity, dissolved oxygen, total hardness, and temperature; and a YSI 9500 photometer was used with ammonia, chloride, dissolved O 2 , pH, nitrite, sulfate, salinity, phosphorus, and temperature reagents (Liu et al, 2020). In South Africa, the Somerset Educational (Pty) Limited Microlife Water Quality Testing Kit was used to monitor temperature, pH, coliform bacteria, dissolved O 2 and bio-dissolved O 2 , hardness, nitrites, nitrates, chlorine, and turbidity (Liu et al, 2020).…”

“…Water quality in Drayton Valley, for instance, was monitored using the YSI Multiparameter with Quatro Cable to measure pH, conductivity, dissolved oxygen, total hardness, and temperature; and a YSI 9500 photometer was used with ammonia, chloride, dissolved O 2 , pH, nitrite, sulfate, salinity, phosphorus, and temperature reagents (Liu et al, 2020). In South Africa, the Somerset Educational (Pty) Limited Microlife Water Quality Testing Kit was used to monitor temperature, pH, coliform bacteria, dissolved O 2 and bio-dissolved O 2 , hardness, nitrites, nitrates, chlorine, and turbidity (Liu et al, 2020). Data collection in both sites was facilitated using Lamotte Insta-Test Natural Water 5-Way Test Strips to study nitrate, nitrite, pH, alkalinity, and total hardness.…”

“…Data collection in both sites was facilitated using Lamotte Insta-Test Natural Water 5-Way Test Strips to study nitrate, nitrite, pH, alkalinity, and total hardness. Monitoring benthic macro invertebrates (i.e., those visible to the naked eye) was also a method employed to assess the biological health of waterways (Liu et al, 2020). Daily air quality (i.e., particulates of 2.5 ppm) was sampled in both research sites using PurpleAir monitoring sensors, and in the Canadian site, daily changes in air quality (i.e., particulate, humidity, and temperature) were collected through Airbeam Air Monitor kits (Liu et al, 2020).…”

“…environment, specifically wetlands, barren areas and forests, and instead an increase of built-up and agricultural land (Liu et al, 2020). With oil prices used as the proxy measure for the economic condition, the correlation coefficients between oil price and ecological variables are as follows: wetland and barren areas (−0.59), area of forest (−0.93), area of built-up land (0.68), and area of agriculture (0.77) (Liu et al, 2020). While not conclusive, this points to a decrease in resources that promote resilience at the level of the natural environment.…”

“…The average household income in Drayton Valley is also strongly correlated with oil price (correlation coefficient = 0.73) (Liu et al, 2020). Debt service ratio at the household level, for instance, is a measure of the household's ability to produce adequate income to cover its debt payments, and can thus serve as an indicator of the stress level that directly relates to the wellbeing of household members (Statistics Canada, 2017).…”