January 2012 Alberta Economic Fundamentals

[Ally]

A quick guide to the Keystone pipeline debate




EDMONTON ` OK, look. I know you`re busy. You don`t have all day, and neither do I. So let`s cut to the chase.




For the past 24 hours, the media, the politicians and the environmental lobby have all been buzzing about the U.S. State Department`s rejection of TransCanada`s proposed Keystone XL pipeline.




It was generally treated as earth-shattering news, even if it wasn`t. But unless you`re an energy exec, an eco activist, a policy wonk or some kind of masochist, you likely won`t have the time or desire to wade through all the news coverage.





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[Ally]

Alberta economy forecast to lead nation next two years





CALGARY ` Alberta`s economy is forecast to lead the country this year and next year, according to a report by TD Economics.




The provincial economic update also sees employment growth in Alberta topping Canada for 2012 and 2013 as well.




The TD Economics report predicts Alberta will see Real Gross Domestic Product growth of 2.6 per cent this year and 2.9 per cent in 2013 compared with 1.7 per cent and 2.2 per cent respectively across the country.




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[Ally]

Obama accused of 'selling out' Americans on Keystone pipeline





Upon hearing the decision by the U.S. State Department to reject TransCanada's Keystone XL pipeline, for the second time since November, one can only conclude that both company and project are victims of the U.S. election cycle.




The reason given for the U.S. decision is that the pipeline is apparently "not in the national interest."




As Col. Sherman Potter from the 1970s television series M*A*S*H might have said, what a lot of horse hooey.






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[Ally]

Calgary's Economic Edge





CREB's 2012 economic outlook and Calgary regional housing forecast.





Read the full report here.

 

[Ally]

Calgary is a 'landlord's market'





REAL ESTATE . A strong appetite for spending has pushed Calgary's retail real estate market to a very low vacancy rate.




A report by Barclay Street Real Estate Ltd. said the city's overall vacancy rate dipped to 2.2 per cent by the end of 2011.




"Calgary continues to be a landlord's market," said Ellisa Asaria, retail leasing specialist with Barclay Street. "Tight supply coupled with high demand from retailers has led to a vacancy rate of 2.2 per cent which is considered full occupancy. As a result, commercial developers are beginning to deploy capital that has, so far, remained on the sidelines. Developers are dusting off development plans and beginning to create significant new retail spaces in response to robust demand."






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[Ally]

Calgary MLS sales in 2011 beat Canadian average





Calgary MLS sales in 2011 bested the Canadian average for year-over-year growth, according to the Canadian Real Estate Association.




In releasing its year-end data on Monday, the association said sales of 22,466 units last year were up 7.0 per cent from the previous year while in Canada sales grew by 2.2 per cent to 456,749 transactions.




Sales across Alberta jumped by 6.9 per cent to 53,146 units.






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[Ally]

So, who got the best returns on their housing buck?




If you were just in it for the money, you'd have done better buying a swimming pool's worth of oil back in 2006 than picking up a house in Mactaggart.




Storing all that crude in your back-yard might have made the people next door angry, but five years later the price would have been up by 28 per cent.




That lovely pile near Whitemud Creek? Typically, its value rose by only 21 per cent, the least of any Edmonton neighbourhood and half the city average.





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[Ally]

EU puts embargo on Iranian oil





BRUSSELS - European Union governments agreed on Monday to an immediate ban on all new contracts to import, buy or transport Iranian crude oil, a move to put pressure on Tehran's disputed nuclear program by shutting off its main source of foreign income.







However, to protect Europe's economy as it battles to overcome a debt crisis, the governments agreed to phase in the embargo, giving countries with existing contracts with Iran until July 1, 2012 to end those deals.







At a meeting of foreign ministers in Brussels, EU governments also agreed to freeze the assets of Iran's central bank and to ban all trade in diamonds, gold and other precious metals with the bank and other public bodies.




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[Ally]

Follow the money, then expose misinformation




Congressional Republican attempts to force U.S. President Barack Obama's hand on the Keystone XL pipeline produced the required result on Wednesday, at least from the GOP perspective. The President gave the project the thumbs-down, and Republicans instantly castigated Mr. Obama as a job destroyer. For his part, the President naturally made no mention of toadying to radical greens, and even claimed that he had nothing against the pipeline, which would create tens of thousands of jobs and is designed to take up to 900,000 barrels a day of diluted bitumen from the Alberta oil sands to the Gulf Coast. His rejection, rather, was due to Congress's "rushed and arbitrary deadline," which prevented the State Department from gathering material necessary to "protect the American people."





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[Ally]

Review bylaws before renovating condo




Question: The units in our condominium complex originally had undeveloped basements. Several owners have since developed their basement areas. Can owners alter their units without prior approval from the board?




Answer: Owners should always review their bylaws or check with the board to ensure they are following the bylaws and other code requirements relating to interior renovations.





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[Ally]

Rent out your driveway? Not in Calgary



It offers the enterprising homeowner in parking-weary Calgary the chance to turn their unused condo parking stall or home driveway into a little cash cow.






Parkatmyhouse.comhttp://http://www.parkatmyhouse.com/uk/, a staple in the United Kingdom since 2006, had its North American launch recently, offering to hook up those with a spare space with those who have no place to leave their car.




The website has few followers so far in this city, but parking for sale is old hat to Calgarians who have turned to sites such as Kijijihttp://http://calgary.kijiji.ca/, where they routinely advertise their backyard garage or underground spot.






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[Ally]

Keystone XL oil pipeline battle has just begun




When it comes to the fate of the 1,700-mile Keystone XL pipeline, proponents and foes agree that the fight did not end with President Obama`s decision Wednesday to reject the pipeline`s permit application. The question is how the battle will be waged in the months to come.




A war of words is being fought on the campaign trail. And some House Republicans vow to again seek legislation to clear the path for the controversial pipeline. Environmental groups say they will fight not only new Keystone proposals but also other major oil pipelines that would carry crude from Canada`s oil sands region.





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[Ally]

Canadian gas export to U.S. to decline 62% by 2035: Report





Canada`s natural gas imports to the U.S. is forecast to fall by 62% by 2035 as the U.S. enjoys a shale gas production boom, according to the latest Annual Energy Outlook report by the U.S. Department of Energy.







`Much of the growth in natural gas production is a result of the application of recent technological advances and continued drilling in shale plays with high concentrations of natural gas liquids and crude oil, which have a higher value in energy equivalent terms than dry natural gas," said the department in its 2012 forecast.






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[Ally]

East Village backers build condo interest





The first two condominium towers in the East Village could break ground by summer if an impending sales campaign for the residential projects proves successful.




"This is the year when we grow up," Michael Brown, president and chief executive for Calgary Municipal Land Corp., said Tuesday during a project update.




"This is the year we focus on getting people engaged in the East Village."






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[Ally]

Alberta cheers end to beef ban





South Korea - the last major Asian market banning Canadian beef since a 2003 mad cow outbreak - has reopened its borders to meat from cattle under 30 months old, the federal government announced Friday.


"This is a great New Year's gift for the Canadian cattle industry and the Canadian economy," federal Agriculture Minister Gerry Ritz said in a news conference at a Spruce Grove ranch.


"This morning, the government of South Korea notified us that all certification conditions are in place and that Canadian beef under 30 months of age can be exported immediately from our accredited facilities."





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[Ally]

$11 billion project on track for 2012: Imperial




Imperial Oil says getting its $10.9-billion Kearl oilsands mining project started by the end of 2012 as scheduled depends on delivery in the next three months of 85 modules delayed in the United States.




On a webcast from a conference in Whistler, B.C., Imperial president and chief executive Bruce March said Thursday he's optimistic the project will start on time. "The Kearl initial development is now about 87 per cent complete and we continue to be on track for a startup in late 2012," he said.





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[Ally]

Chesapeake Energy cuts natural gas production




North America`s major gas producers are shutting in production and cutting exploration drilling in an industry-wide effort to reduce a massive surplus that has depressed prices to 10-year lows.






Chesapeake Energy Corp. (CHK-N22.12-1.26-5.39%), the continent`s second-largest gas producer, said Monday it is immediately curtailing production by 500 million cubic feet per day, and is prepared to double that to one billion cubic feet per day. It will also reduce the number of rigs it has operating in natural gas fields to 24, or a third of the 71 rigs it employed in gas fields on average last year.





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[Ally]

Edmonton's housing most affordable in Canada, survey shows




EDMONTON - Edmonton enjoys the most affordable housing of Canada`s six major metropolitan regions, according to a study released Monday.




The International Housing Affordability Survey looks at housing in cities in the United States, the United Kingdom, Canada, Australia, Ireland, and New Zealand along with Hong Kong. It found that among Canadian cities with populations above one million, Edmonton has the most affordable housing.




Windsor was the most affordable market of any size, while Vancouver was by far the priciest market in the country. In fact, Vancouver outranked every city in the survey except Hong Kong, topping markets like New York City, San Francisco, Sydney and London, England.



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[Ally]

Obama pushes natural gas fracking to create 600,000 jobs





President Barack Obama pushed drilling for gas in shale rock and support for cleaner energy sources to boost the economy in his final State of the Union address before facing U.S. voters in November.




Hydraulic fracturing, the process of injecting water, sand and chemicals underground to free gas trapped in rock, could create more than 600,000 jobs by the end of the decade, Obama said yesterday. The process, called fracking, is among a list of energy policies Obama said would fuel economic growth.




`We have a supply of natural gas that can last America nearly 100 years, and my administration will take every possible action to safely develop this energy,` Obama said.





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[Ally]

Harper builds oil link with China after Obama Keystone 'slap'




Prime Minister Stephen Harper is gaining support among Canadians for his plan to ship oilsands crude to China after President Barack Obama rejected TransCanada Corp.`s $7-billion Keystone XL pipeline to the U.S. Gulf Coast.




Harper will meet President Hu Jintao in China next month, when he may tout Enbridge Inc.`s proposed Northern Gateway pipeline that would let crude flow to Asia from Alberta`s oilsands via a Canadian port.





Read the full article here.