December 2012 Alberta Economic Fundamentals

[Ally]

Big towns dictate market rate






Red Deer and Vancouver have vastly different climates, topographies ` and real estate markets.




This third difference has been illustrated by the recent slide in residential sales activity in the West Coast city, a trend not duplicated in Red Deer.




Yet big urban centres like Vancouver are often lumped together with other cities to produce national statistics, said Ken Devoe, president of the Central Alberta Realtor`s Association.





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[Ally]

Alberta resale housing market tops Canada in annual sales growth






CALGARY ` Alberta will lead the country this year and in 2013 in the pace of growth in the resale housing market, according to a new forecast by the Canadian Real Estate Association.




The national association of realtors said Monday that Alberta MLS sales this year will finish up 13.1 per cent from last year to 60,800 transactions and sales will lead the country next year as well with 1.3 per cent growth to 61,600.




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[Ally]

Ewart: Oilsands must address vilification




When you have a reputation like the oilsands - essentially the most vilified undertaking by the world's most hated industry - you had better be engaged in reputation management.




Over the past few years, issues around pipelines, foreign investment, greenhouse gases and the cumulative effects of a multi-decade rush to develop the massive but economically challenged resource have made reputation management critically important to the oilsands.





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[Ally]

Iraq - back in the flow






Not many oilfields in the world are laid with 100,000 mines. But Rumaila is no ordinary oilfield.


The jewel in Iraq`s crown, it is one of the world`s few supergiants, producing more crude than all of the UK North Sea. So as US-led forces prepared to invade Iraq in 2003, Saddam Hussein`s regime laid an 18km-long defensive minefield right across it to deter their advance.





It did not help. Iraq was occupied, Saddam toppled and the country entered a turbulent new era. The minefield is now a no-go zone ` its only victims the local camels that wander in occasionally and are blown up by `bouncing betties`, each packed with 1,000 pieces of shrapnel.





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[Ally]

Alberta landowners lose fight against heartland decision





EDMONTON - The three-year fight against the $610-million Heartland transmission line into Strathcona County hit a legal wall this week ` though critics still say the line is not needed and its high cost will chase industry out of the region.







The Alberta Court of Appeal on Monday rejected the case of two landowners who argued the Alberta Utilities Commission should have considered the economic and social impact in its evaluation of the proposed transmission line, not just the route selection.







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[Ally]

Alberta's population growing at fastest pace since 1980




Alberta`s population is growing at the fastest pace since 1980, Statistics Canada reports.




During the third quarter, Alberta`s population grew by 33,100 or 0.9 per cent, the agency says, pushing the provincial total to 3,906,800 as of Oct. 1. At current growth rates, Alberta`s population is on track to surpass the four million mark over the next year or so.




The quarterly increase is the second-highest in Alberta`s history. The biggest increase was recorded in the third quarter of 1980, StatsCan reports.





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[Ally]

Edmonton's working-age population on the rise





EDMONTON - The Edmonton region could reach 1.5 million people within a decade if the working-age population keeps rising at its current rapid pace, city economist John Rose says.




The number of people in the area over age 15 increased by about 30,000 in the past year, a boost of 3.1 per cent, he said Wednesday during a year-end interview.





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[Ally]

Alberta's finance minister 'very concerned' about running a deficit as oil prices fall




The price squeeze on heavy oil is gutting Alberta`s bottom line and Finance Minister Doug Horner says it`s now all hands on deck to cut spending and shelve projects.




`I`m very, very concerned about where those (oilsands) numbers are headed,` Horner said outside his legislature office Wednesday.




`This is a situation that is actually affecting the Canadian GDP. It`s that much of an impact on the Canadian economy.`





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[Ally]

Alberta sales to lead provincial pack




In September, the national association of real estate professionals forecast annual sales growth in the province of 13.7 per cent for 2012, and 1.7 per cent for 2013. While the new figures are down from the previous report, Alberta is still in line to finish the year with the biggest annual increase at 13.1 percent.




Gregory Klump, CREA's chief economist, attributes the change to Flaherty`s mortgage rules.




"Annual sales in 2012 reflect a stronger profile prior to recent mortgage rule changes followed by weaker activity following their implementation," said Klump. "By contrast, forecast sales in 2013 reflect an improvement from levels this summer in the immediate wake of mortgage rule changes. Even so, sales in most provinces next year are expected to remain down from levels posted prior to the most recent changes to mortgage regulations.`


The report, released Monday, said the average price in Alberta is predicted to rise 2.7 per cent to $363,100 this year, and up 2.3 per cent next year to $371,300.





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[Ally]

Hinton-area coal mine finds financial backer





EDMONTON - The $1.5 billion mine proposed for the Hinton area moved a step closer this week after a leading private investment firm agreed to provide Coalspur Mines with $300 million in credit to fund the first phase of the Vista Coal project.







`This is a significant milestone and enables us to move forward with construction in the second quarter of 2013,` said Dave Montpetit, a Coalspur vice-president.







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[Ally]

Financial uncertainty could mean good news for oil projects





As volatile oil prices are expected to affect not only Alberta`s bottom line, but all of Canada ` Alberta`s Finance Minister hopes other provinces will see the need for ongoing pipeline projects to be completed.




Minister Doug Horner said he believes the current financial climate speaks to the provincial government`s call for a national energy strategy.





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[Ally]

Alberta's quarterly population report





Driven by an infl ux of new migrants, Alberta led all provinces in population growth for the fourth consecutive quarter. The province added 33,100 people between July and September, and saw its population expand by 0.85% to 3,906,839. This was more than double the national increase of 0.35%. Besides Alberta, the only province to grow faster than the national average was Saskatchewan (0.61%). Newfoundland and Labrador experienced a small increase, but the population of the rest of Atlantic Canada was relatively stable.





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[Ally]

Nenshi plots another vote on secondary suites for Calgary




Mayor Naheed Nenshi is planning one more stab at secondary-suite reform before next fall's election, in hopes of scoring a minor victory in an area where he suffered his biggest policy defeat of the term.




He struck out in 2011 on any big measures that would remove hurdles to legal basement suites in existing communities, and largely avoided the issue in 2012. To pro-suite aldermen and Nenshi allies, it appeared likely the issue was dead until Calgarians elect a new council in 2013.





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[Ally]

Alberta economy shrugs off oil slump




Most signals on Alberta's economy dashboard are delivering the same message into 2013: "Things are good," says TD Economics.




And there's little surprise why Alberta's economy outperformed the rest of Canada this year, with key economic indicators such as labour markets, investment indicators and consumer demand expected to remain strong.



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[Ally]

Oil sands: A complete guide to all projects proposed, under construction, or up for review




The Canadian Association of Petroleum Producers` latest forecast shows oil sands output will more than double to 3.1 million barrels per day (bpd) in 2020, from 1.6 million bpd in 2011. By 2025, production from the oil sands will soar to 4.2 million bpd by 2025 and cross the five million bpd mark by 2030.




`If the only projects to proceed were the ones in operation or currently under construction, oil sands production would still increase by 54% to 2.5 million bpd by 2020 and then remain relatively flat for the rest of the forecast,` CAPP said in its 2012 annual forecast. The association estimates the country`s overall crude production to reach 6.24 million bpd by 2030.





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[Ally]

U.S. ruling on Keystone XL could be delayed again




A top risk-management analyst warned on Friday that a decision by Washington on TransCanada Corp`s Keystone XL pipeline could get delayed again into next summer, adding more pressure to already deeply discounted Canadian oil prices.




The U.S. State Department has said it will rule on the $5.3 billion Canada-to-Nebraska pipeline by the end of March, assuming Nebraska approves a new route that skirts an environmentally sensitive region in the state.





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[Ally]

Fracking activities polluted Alberta's groundwater: ERCB




Leaked fluid from fracking activities contaminated groundwater after a `serious` incident at a well site near Grande Prairie, a city in the northwestern part of the Canadian province of Alberta, in September 2011, reveals an investigation by the Energy Resources Conservation Board, which regulates the energy industry.




The authority`s reports says that Crew Energy (NYSE:BTU) `inadvertently` released toxic fluids at too shallow a level in a natural gas well and then failed to realize the leak was occurring underground.





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[Ally]

Edmonton's downtown: It's growing




Last week, the Katz Group reviewed its downtown development vision around the new, still-stalled, downtown arena proposal for city council.




To recap: Two office towers, two condo towers, a new hotel and up so six "low-rise" residential and commercial development surrounding the arena in a well-planned urban precinct.




But the same darned question ran through everybody's mind, at least anybody with any long-term connection to Edmonton's downtown.





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[Ally]

Apartments to ease tight housing market




Construction is underway on a 33-unit three-storey apartment building on Woodland Road, adding a range of housing options to a particularly tight rental market.




The Tricon Developments Inc. build, which was approved at the town`s Municipal Planning Commission in November, will include handicap, one- and two-bedroom, and bachelor suite units.




`It will add to the availability of rental quarters,` said Dwight Asplind, project manager at Tricon Developments Inc. `It`s geared to accommodating people that are in the oilpatch or in town temporarily.`





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[Ally]

Leaked fracking fluid continaminated groundwater near Grande Prairie: ERCB




EDMONTON - Leaked fracking fluid has contaminated groundwater after a `serious` incident at a well site near Grande Prairie in September 2011, according to an investigation by the Energy Resources Conservation Board which regulates the energy industry.




Calgary-based Crew Energy `inadvertently` released toxic fluids at too shallow a level in a natural gas well and then failed to realize the leak was occurring underground, said the ERCB report released Thursday.





Read the full article here.