Alberta January 2013 Economic Fundamentals

[Ally]

Alberta's finance minister says next budget won't be fun




CALGARY - Alberta's finance minister says plummeting oil revenue means the next Alberta budget isn't going to be pretty, but the province isn't ready to consider raising taxes ` yet.




"This is not going to be a fun budget. This is going to be a budget that will show that we are serious about reining in spending," Doug Horner told a Calgary business audience on Monday.





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[Ally]

Grande Prairie home sales up in December




According to recent statistics, Grande Prairie home values should increase over the next year.




The Grande Prairie and Area Association of Realtors released numbers last week, which highlighted a dramatic increase in home sales in December 2012 as well as the 20th consecutive year-over-year increase.




Grande Prairie realtors sold 141 units in December, which is marked as a 31% increase from one year prior. This can be compared to the average Alberta statistics, which dipped 2% from the previous year.





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[Ally]

Railing crude oil to coastal markets costly for producers




Persistent discounts in the United States for western Canadian and North Dakota Bakken crude oil has the industry hunting down ways to solve this problem.




The discounts are the result of surging light oil production from unconventional basins in the United States and Alberta`s oil sands, coupled with not enough pipeline capacity to handle it all.

One solution industry is increasingly turning to is railing the crude to markets that will pay more for it. The rail solution is costly, however. According to data compiled by Calgary-based investment bank Peters & Co., here is the approximate cost per barrel to move crude oil by rail from Western Canada and North Dakota to North American markets at tidewater.





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[Ally]

Is there enough water for the U.S. to frack its way energy independence




In chemistry you quickly discover that oil and water don`t mix. The same is true in the energy industry.




It`s unfortunate, because the new fuel sources that the International Energy Agency claims will allow North America to reach energy independence require tremendous amounts of water. Whether from shale plays or the oil sands, millions of gallons of water are needed to pull that energy out of the ground.



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[Ally]

Nenshi's invite to the World Economic Forum is a rare honour




CALGARY ` When he`s in Davos, Switzerland, this week, Mayor Naheed Nenshi won`t only be breathing in rarefied air because of the Alpine altitude.




It`s exceedingly rare that a mayor, let alone one from Canada, gets an invitation to rub shoulders with the world`s business and power-broker elite at the World Economic Forum.





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[Ally]

Nebraska governor approves Keystone XL pipeline route




LINCOLN, Neb. ` Nebraska Gov. Dave Heineman approved a new route for the Keystone XL oil pipeline on Tuesday that avoids the state`s environmentally sensitive Sandhills region.




Heineman sent a letter to President Barack Obama confirming that he would allow the controversial, Canada-to-Texas pipeline to proceed through his state.





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[Ally]

Northern Gateway project an enormous opportunity for Canada's building trades





January 21, 2013 - The Northern Gateway Project is a game changer for construction workers in the coming years. It opens new markets for `Made in Canada` oil products not only for North American customers but now to the world's second largest economic region.




Robert Blakely, Director of Canadian Affairs says `Canadian construction workers will benefit not only from the initial build but also from oil and gas infrastructure expansion in Alberta of Canada`s reserve of petroleum products. As we already know, when oil and gas investment is made in Alberta, all regions of Canada benefit. When the Gateway is finished it opens up new markets to Canadians in every industry.`





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[Ally]

Alberta's royalty regime to take a steep hit as oil prices sputter, energy minister warns




CALGARY ` The steep price discount facing Alberta crude is jeopardizing the Redford government`s projection of collecting $10 billion in bitumen revenue by 2014-15, as fewer oilsands projects are expected to graduate into paying higher royalties in the short term, says Energy Minister Ken Hughes.




In last spring`s budget, the Tory government predicted it would collect a gusher from the province`s 108 oilsands projects, with bitumen royalties hitting $5.7 billion this year and climbing by an average of 32 per cent in each of the following two years ` driven by rising production and expectations of higher commodity prices.





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[Ally]

Prospective homebuyers in Alerta confident in market




CALGARY ` A national survey of prospective homebuyers, who intend to buy within the next 24 months, indicates nearly one-in-five in Alberta are single people.




The RE/MAX Canadian Homebuying Trends Survey 2013-2014, released on Tuesday, said 42 per cent are couples and 38 per cent are families.





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[Ally]

Slight decrease for Calgary building permits in 2012




CALGARY ` The total value of building permits in the City of Calgary decreased slightly in 2012 compared with the previous year.




The city reported Friday that total construction value was $4.48 billion, down just one per cent from $4.53 billion in 2011.





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[Ally]

Edmonton NLRT on track as project enters its final year of construction





EDMONTON - With its graceful wooden arches and attached pedestrian mall on a closed portion of 105th Avenue, the largely completed MacEwan LRT station should be a hit with passengers and local residents.



But as Edmonton`s $755 million, 3.3-kilometre north transit line enters its final year of construction, there is still plenty to do underground.





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[Ally]

Less obtrusive stations proposed for Edmonton's future northwest LRT route





EDMONTON - Edmonton`s future northwest LRT route will feature smaller, less obtrusive stations than on existing lines to help them fit into surrounding neighbourhoods, a recommended concept plan shows.



The plan, being presented at public meetings next week, outlines such changes as adding kiss-and-ride stops at three stations, an access lane to the Castle Downs playground and spray park, and longer left-turn lanes at 145th Avenue and 153rd Avenue.





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[Ally]

Alberta EI recipients continue to increase




CALGARY ` The number of Albertans receiving regular Employment Insurance benefits in November increased for the fifth consecutive month, according to Statistics Canada.




The federal agency reported Friday that 27,900 people in the province received benefits during the month, up 420 people from October, or 1.5 per cent, but still down 1,510 people, or 5.1 per cent, from a year ago.





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[Ally]

Alberta economy to ease in 2013




CALGARY ` Alberta`s economy is expected to ease in 2013 but will remain near the top of the Canadian leaderboard, says BMO Economics as it released its Provincial Monitor report on Thursday.




BMO also said economic performance across the country continues to vary widely by region but the `gaping divide` between growth rates in Western Canada and the rest of Canada appears to be on a narrowing trajectory.





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[Ally]

Despite current oil-based pains, there is still black gold at the end of the rainbow for Alberta




EDMONTON - It`s just peachy that ex-Suncor boss Rick George expects the big discounts on Alberta crude to narrow sharply by 2014.




But oil producers and provincial taxpayers shouldn`t count on that, according to Alberta Energy Minister Ken Hughes and Finance Minister Doug Horner.





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[Ally]

U.S. Gulf Coast offers only part of the solution for Alberta's heavy crude





EDMONTON - New pipelines to U.S. Gulf Coast refineries might not put an end to the current oversupply that is triggering a huge discount for Alberta`s heavy crude oil.



With rapidly expanding U.S. production of light oil, by 2015 the refineries of Texas and Louisiana `will face a buyer`s market in which light and heavy are competing for market share,` said Robert Johnston, director of energy and natural resources at Washington-based Eurasia Group, a leading global political risk research and consulting firm.





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[Ally]

LRT Mandel's top priority as Edmonton council enters last year of term




EDMONTON - Edmonton should finally nail down funding for the $1.8-billion southeast LRT route next year and construction might start in 2015, Mayor Stephen Mandel says.




`I`m quite confident that we have all the tools in place ` We have to take a chance at the same time, as we took on the north line (to NAIT),` he said this week during a year-end interview.





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[Ally]

Calgary real estate sales top national charts




Calgary lead Canada`s major cities in real estate growth in 2012, says the year-end report from the Canadian Real Estate Association (CREA)




The value of residential transactions in Calgary reached $11 billion in 2012, a 21% increase over 2011, Meanwhile, Toronto saw a 2.8% increase and the dollar value tumbled 28% in Vancouver.



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[Ally]

Alberta's fiscal model needs a fresh rethink




CALGARY ` The time has come for Alberta to modernize its tax revenue base and chart a more sustainable economic path as current renewed fiscal pressures reinforce the need to rethink Alberta`s approach to fiscal policy, says the Conference Board of Canada`s chief economist.




Glen Hodgson, who is also senior vice-president of the board, in a research paper released Wednesday, said Alberta is arguably the most blessed jurisdiction in North America and despite the continued-bumpy global economic environment, prospects are better in Alberta than in every other state and province in North America.





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[Ally]

Calgary prices for repeat home sales climb





CALGARY ` House price growth for repeat home sales in Calgary topped the Canadian average in December, according to the Teranet-National Bank National Composite House Price Index, which was released Wednesday.




The index showed prices in Calgary in December grew by 4.1 per cent year-over-year while the 12-month gain in 11 metropolitan markets across the country increased by 3.1 per cent.




The index is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index.






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