Energy sector downturn a bonus for golf industry

Golf courses in Alberta are expecting an upswing in business this summer, as the low price of oil has left thousands of people with extra time on their hands.

Brent Hutcheon knows the situation all too well. He never played more golf in his life than the year he was laid off in the early '80s and couldn't find much work. Having since worked as a golf course manager, he's seen the trend of how a downturn in the economy spurs more people to grab their sticks and head out to the links.

"There is quite a bit more time on people's hands and quite a bit more people play the game of golf. A little more recreation instead of working," says Hutcheon, now a regional director with National Golf Course Owners Association Canada. "Taking that time and relaxing and having some fun on the golf course certainly takes your mind off what's going on in the rest of the world."

The golf season in Alberta is already off to a hot start, thanks to the warm weather. Some courses in Calgary opened three weeks earlier than usual.

The downturn in the energy sector is well documented. Companies are reducing spending, slashing jobs and lowering investor expectations.

"People seem to have quite a bit more time on their hands if they are not working the 70 hours a week," says Hutcheon.

A recent report by ARC Financial outlines the current state of the oil sector. The industry's capital investment in 2015 will be down by almost 50 per cent, or $36 billion compared to 2014. "That's why field activity is quiet and layoffs are a weekly occurrence. Cash flow impairment suggests there should be even more belt tightening in spending," states the report.

ARC expects it to be a very quite summer in the oilpatch.

Out of work and a severance package in hand, some people may decide to enjoy the summer, before rushing into another job.

Those in the golf business say they would never wish for a downturn and they do hope the price of oil rebounds. A boost in the golf business would only be temporary if oil prices remain low for several years.

But at least for now, they are OK with people spending less time at the office and more out on the greens.

"People will play more golf," says Jim Hope, general manager of Canyon Meadows Golf and Country Club, a private course in southwest Calgary. "If they have more time on their hands, they're just going to play more golf."

How much of an increase in business will vary depending on the course and location. Some courses that rely on hosting corporate events could see some of that business dry up this summer.