February 2011 Alberta Economic Fundamentals

[Ally]

Calgary home sales show positive signs





CALGARY - After eight consecutive months of year-over-year declines, MLS sales for single-family homes in Calgary showed a positive move forward in January to begin the new year.




According statistics released Tuesday by the Calgary Real Estate Board, there were 787 single-family sales last month, up from 762 in January 2010. Condominium sales however continued to struggle during the month posting the ninth consecutive year-over-year decline with only 297 transactions in January compared with 376 a year ago.




Average prices for both single-family homes and condos were up from January 2010.




Read the full article here.

 

[Ally]

Opti Canada 'a falling knife'





Teetering on the brink of bankruptcy, Opti Canada Inc. has been dropped from coverage at Canaccord Genuity.




`It`s a falling knife,` analyst Phil Skolnick said in a note to clients. `Consequently, due to the continued deterioration in the story, we are dropping

coverage to focus our resources elsewhere.




Mr. Skolnick said Opti`s recent announcement that it has retained bankruptcy specialists Lazard Freres & Co. is a clear signal that poor performance at Opti`s Long Lake project is growing worse and depleting the company`s financial resources.




He said it is also a sign tha Opti Canada has been unable to find a buyer for the business.




Read the full article here.

 

[Ally]

New age for old oil





CALGARY ` It has been a long time since words such as `irrational exuberance,` `froth` and `excitement` have been associated with Canada`s junior oil-and-gas sector.




Policy and market blows in the past five years, including Ottawa`s elimination of royalty trusts, Alberta`s royalty changes, weak energy prices and the market meltdown, combined to beat many companies out of business.




But some junior oil and gas entrepreneurs got back to work ` and reconfirmed that necessity is the mother of all invention.




Inspired by such advances as horizontal drilling and hydraulic fracturing that caused the shale gas revolution, or by other enhanced oil-recovery methods, they are squeezing new, profitable barrels from Western Canada`s mature reservoirs.




Read the full article here.

 

[Ally]

Threat of local labour shortage tops agenda for new Edmonton chairwoman





EDMONTON ` Finding ways to deal with an impending labour shortage will top the list for Edmonton`s Chamber of Commerce this year, says incoming chairwoman Bernie Kollman.




`It`s a strategic area for us, how we are going to address this shortage. We will be looking at ways to engage the aboriginal community, and examine immigration issues,` said Kollman, who is IBM`s general manager in Edmonton.




Kollman will be installed as chairwoman at the annual ball Friday night.




She said local businesses are already discussing the impending labour shortage, a situation the chamber thinks will worsen at the economy improves.




Read the full article here.

 

[Ally]

Asia's persuit of Canada's oilsands ups the competitive ante in 2011: Ernst & Young





EDMONTON - Heightened foreign investment in Canada`s unconventional oil and gas industry will be driven primarily by Asian markets, Ernst & Young says.




And as foreign companies shift from investors to operators, national oil companies and their local partners will need to decentralize business models, integrate and streamline processes quickly, and embrace a more international corporate culture, the global firm said Thursday.




`There are a host of reasons why Canada is such an attractive destination and why foreign companies are investing here,` Lance Mortlock, senior manager in the firm`s Canadian oil and gas practice, said in a news release. `Rising oil prices, high debt levels of the junior players, a stable financial and regulatory environment, huge reserves, proximity to the United States, vast expertise and a well-established infrastructure are just a few of them,` he said.




Read the full article here.

 

[Ally]

'Gong show' of oilsands costs feared





CALGARY - The resurgence in oilsands activity means the "gong show" of cost inflation of two years ago is about to begin again, an oilsands conference heard Wednesday.


But speakers at the Canadian Oil Sands Summit agreed that the industry is better prepared than it was during the run-up in activity from 2006-08 that led to massive cost overruns on projects and, ultimately, the deferral of several as world oil prices fell.


Harbir Chhina, executive vice-president of enhanced oil production for Cenovus Energy Inc., which is planning in situ oilsands expansions on several fronts, said there's no question costs will rise with spending.


"The gong show is starting," he said during a panel discussion.




Read the full article here.

 

[Ally]

'Gong show' of oilsands costs feared





CALGARY - The resurgence in oilsands activity means the "gong show" of cost inflation of two years ago is about to begin again, an oilsands conference heard Wednesday.




But speakers at the Canadian Oil Sands Summit agreed that the industry is better prepared than it was during the run-up in activity from 2006-08 that led to massive cost overruns on projects and, ultimately, the deferral of several as world oil prices fell.




Harbir Chhina, executive vice-president of enhanced oil production for Cenovus Energy Inc., which is planning in situ oilsands expansions on several fronts, said there's no question costs will rise with spending.




"The gong show is starting," he said during a panel discussion.




Read the full article here.

 

[Ally]

Trades welcome easing of Alberta's apprenticeship rules





EDMONTON - A construction-industry group is applauding the Alberta government for allowing a single journeyman to supervise the training of up to two apprentices.




Before Jan. 31, for most construction jobs, companies were required to have one journeyman tradesman for each trainee.




In the last boom, a labour shortage meant some companies had no choice but to fire trainees, said Stephen Kushner, president of Merit Contractors Association, said Thursday in a news release.




`The construction industry faced the absurd situation where Albertans wanted to work and learn a trade and companies wanted to hire them, but couldn`t because of the rules,` Kushner said.




Read the full article here.

 

[Ally]

Unemployment rises, even as Alberta creates jobs





CALGARY - Alberta continues to create jobs but at the same time its unemployment rate is rising as more people are looking for work.




The unemployment rate rose to 5.9 per cent in January from 5.5 per cent in December but 21,600 jobs were created in Alberta, Statistics Canada reported Friday. It was the second largest increase in the country behind Ontario`s 36,000. The monthly job gain was also the biggest in the province since February 2006.




Lizzy Sheehan, 25, came to Calgary in September from Ireland. She was a hairdresser in Ireland but found it hard to secure a job in that profession here because she needed Canadian qualifications. She decided to look for a job in the pub industry. And feels fortunate she found one at St. James Corner.




Read the full article here.

 

[Ally]

Alberta to lead country in auto sales growth in 2011





CALGARY - Alberta will lead the country in the annual growth rate of auto sales this year, says Scotia Economics' latest Global Auto Report released Friday.




With Canadian consumer confidence at its highest level since last spring, and new job creation continuing to advance, vehicle sales will continue to strengthen, said the report by Carlos Gomes, senior economist with the bank.




"The resource-rich provinces of Alberta, Saskatchewan and Newfoundland will lead the improvement in car and light truck sales across Canada in 2011," said Gomes. "Commodity prices posted a double-digit increase in 2010, and will continue to advance this year alongside a strong and sustained economic recovery, particularly in the fast-growing emerging nations."




Read the full article here.

 

[Ally]

Staging Calgary homes for sale





CALGARY - When the residential real estate market is soft, people wanting to sell their homes look for any edge they can find.




Competitive pricing is always an advantage.




But many also turn to professionals to help them "stage" their homes to make them more appealing to potential buyers. For almost two years, Deena Cottingham has helped homeowners and realtors do exactly that through her company GreenApple Staging and Images.




The company began two years ago in March and contracts work out to people on a regular basis depending on the assignment.




Read the full article here.

 

[Ally]

Calgary home sales show positive signs







CALGARY - After eight consecutive months of year-over-year declines, MLS sales for single-family homes in Calgary showed a positive move forward in January to begin the new year.




According statistics released Tuesday by the Calgary Real Estate Board, there were 787 single-family sales last month, up from 762 in January 2010. Condominium sales however continued to struggle during the month posting the ninth consecutive year-over-year decline with only 297 transactions in January compared with 376 a year ago.




Average prices for both single-family homes and condos were up from January 2010.




Read the full article here.

 

[Ally]

2011 Edmonton home sales off to slow start





EDMONTON - Edmonton-area home sales started 2011 at a considerably slower pace than 2010, show MLS figures released Wednesday by the Realtors Association of Edmonton.




Residential sales for the Edmonton region in January were 735, down 11.9 per cent from December and off by 21 per cent from January 2010.




Buyers began entering the market in January last year to beat mortgage lending changes by Canada Mortgage and Housing Corp. and expected interest rate hikes, but the market slumped after a strong start to the year.




Association president Chris Mooney said he doesn`t expect new rules taking effect March 18 ` in which the government will no longer insure mortgages with amortization periods of more than 30 years ` to have the same effect of accelerating activity.




Read the full article here.

 

[Ally]

Most Americans don't know oil comes from Canada





Most Americans remain unaware that Canada is the top foreign supplier of energy to the United States, former U.S. ambassador to Canada David Wilkins says in a letter in the Washington Post.





`Most Americans are shocked to learn that Canada ` and not the Middle East ` is our country`s top foreign supplier of oil, natural gas and uranium,` he said in the letter, included in his weekly dispatch, Carolina-Canada Connections, written in response to a column by the newspaper`s Ezra Klein.





Mr. Wilkins said Canada is a perfect example of why the United States should aggressively pursue free-trade agreements and reject the policies of protectionism that have been economically devastating to the United States.


Read the full article here.

 

[Ally]

Alberta unemployment rate rises despite job growth





Edmonton ` Job growth in Alberta surged in January, but so did the number of people looking for work.




Despite a gain of 21,600 jobs ` nearly a third of the national total ` Alberta`s seasonally adjusted unemployment rate ticked up 0.4 percentage points to 5.9 per cent from December, said Statistics Canada Friday.




`Alberta posted a notable employment increase,` the federal agency said.




But the province`s jobless rate grew. The reason: the labour force swelled by 32,500 people in the same period, Statistics Canada said




Read the full article here.

 

[Ally]

Naheed Nenshi's challenge: Making Calgary a livable city




When Naheed Nenshi was elected to lead the city of Calgary in October, headlines hailed him as Canada`s first Muslim mayor. Mr. Nenshi, 39, is an Ismaili Muslim, born of parents of South Asian descent who immigrated to Canada from Tanzania.




But what makes him really interesting is not his religious background or the colour of his skin. It is his challenge to the way Canadians build their cities.



Read the full article here.

 

[Ally]

A little town on the oil sands prepares for $100 oil and a new boom



Time moves slowly in Chipman, Alta., where the ancient hotel jukebox plays Toby Keith`s I Love This Bar as old guys talk over beers about what it`s like working in Fort Mac at 40-below. You can order a hefty helping of burger and fries with a Coke and still get a fistful of change from a $10 bill.





Chipman began life a century ago as a railway whistle stop and grew into a proud six-grain-elevator village. Now, the elevators are gone and the main street has been ravaged by fire and neglect. The town hangs on, barely, as a couple of gas pumps, three churches and a collection of bungalows in the blur of the fast, flat highway less than an hour east of Edmonton.





For a long time, it looked like Chipman would join all the other ghostly Prairie villages bypassed by economic progress_` until one day in 2007, when a developer named Ted Rea blew in from Dallas with money and dreams and bought much of the place.





Read the full article here.

 

[Ally]

Why oil (not cars) drives the economy



Kriska Transportation president Mark Seymour knows exactly what happens when the price of oil pushes $100 (U.S.) a barrel. Trucking companies like his hike their fuel surcharges ` and Canadians pay more for all the things they buy.





`The bottom line is that it dramatically affects the price of goods to the consumer,` said Mr. Seymour, whose company runs 400 trucks from its headquarters in Prescott, Ont.





The oil price spike is producing a typical showdown between energy producers and consumers. But this isn`t a return to 1980, when Ottawa tried unsuccessfully to shift wealth from drillers to guzzlers via the National Energy Program, setting up a brawl between Alberta and the rest of Canada.





This time, the entire country has evolved into a petro-dollar economy. Canada's fortunes ` and its currency ` are now more closely tethered to oil than any other industry, including autos, forest products or agriculture.





Read the full article here.

 

[Ally]

Oilsands receive modest U.S. approval





Something interesting has happened in the last week: The oilsands have received modest, if not backhanded, endorsements from the U.S. Department of Energy, the Washington Post and the influential investment publication, Barron's.




Does this mean the environmental issues have been cast aside and that the oil itself isn't the issue but the amount consumed and what it is used for?




A question of dancing with the devil you know - in this case recognizing that to spurn the oilsands production would result in higher exports from other oil-producing countries?




Read the full article here.

 

[Ally]

Albertans vulnerable to economic downturn: TD report





CALGARY - Alberta households are among those most vulnerable and with the greatest risks to negative economic events, says a new report released Wednesday by TD Economics.




The first index to rank the financial vulnerability of households by province said British Columbia, Ontario and Saskatchewan households are also at greatest risk to economic downturns such as "a substantial correction in housing prices, a major disruption in incomes or an unexpected large increase in borrowing rates."




But TD Economics said the probability of one or more of these negative events occurring in the coming years is relatively low.




Read the full article here.