January 2010

[Ally]

Toyota adds second shift in Woodstock

A little more than a year ago when Toyota Motor Manufacturing Canada Inc. (TMCC)opened its new assembly plant in Woodstock, Ont., the news was bittersweet.

While the new facility, where it builds its popular RAV4, certainly bolstered Toyota`s presence in the province and created roughly 1,200 jobs, it came at a time when compact crossover SUVs, like the RAV4, were falling out of favour in the face of soaring fuel prices and a collapsing economy.

Originally, the Japanese automaker had planned to add a second line to its Woodstock plant last spring, but prior to the ribbon cutting, it announced it had postponed those plans indefinitely as it became clear the auto industry was heading into one of its most challenging periods to date.

But the momentum has finally shifted. Toyota announced yesterday it would add its long-awaited second line in Woodstock next spring. The move will add 800 jobs and double the plant`s output to 150,000 vehicles as of March 2010.

"We thought it could have been delayed a lot longer," said Ray Tanguay, TMMC president, in an interview. "But we believe the automotive market is coming back and this is a vote of confidence in the type of vehicle we make here."

Read the full article here.

 

[Ally]

Alberta Shale gas play in spotlight

CALGARY - A new natural-gas shale play, akin to the Horn River gas field in northwestern British Columbia, is emerging in Alberta, and explorers made a big gamble on the zone this week.

Alberta, which has been pummelled by low natural-gas prices and a royalty structure that producers dislike, raked in $383.9-million in its last oil and gas rights auction of 2009. The Devonian Duvernay shale was the star area.

"We believe there is sufficient evidence to portray the Duvernay as a reasonable analog to the well known, related Muskwa shales of Horn River," Robert Fitzmartyn, vice-president and director of institutional research at First-Energy Capital Corp., said in a research note.

The Horn River gas field may contain up to 500 trillion cubic feet of natural gas, which would make it a mammoth find. The Duvernay zone, in comparison, is a mere speck considering Mr. Fitzmartyn estimates it may contain 25 trillion cubic feet of natural gas. However, the Duvernay, which sits west of Edmonton, might attract more attention.

"The Duvernay is going to have its advantages," Mr. Fitzmartyn said in an interview. "It has the infrastructure [such as pipelines and gas plants] there; it might be better rocks."

Read the full article here.

 

[Ally]

Defend Oil Sands, Cenovus CEO says

The Alberta government and its federal counterpart must step up to defend the oil sands, both at home and abroad, pushing the economic and energy-security arguments, says the incoming chief executive of newly created Cenovus Energy Inc.

Brian Ferguson, the man tapped to lead EnCana Corp.` s oil sands and refining spinoff that begins operating as a separate company tomorrow, also said Edmonton and Ottawa must counter well-organized environmental lobbyists to outline how the carbon-intensive industry is developing the tar-like resource responsibly.

"I don`t anticipate [Cenovus] having any kind of a lobbying effort in Washington," Mr. Ferguson said in an interview in his Calgary office on Friday, his 53rd birthday. "Clearly there are very high level discussions between the governments ... [like at December`s climate change talks in] Copenhagen. There`s going to be some pretty important, pretty powerful people there.

"And [the government must] make sure they understand all of the different aspects, not just sort of one side."

Read the full article here.

 

[Ally]

Edmonton House prices fall 10% for the second year

EDMONTON — The city started mailing out property assessment notices Monday that show the value of the typical Edmonton house has dropped by about 10 per cent for the second year in a row.

As of the annual July 1 assessment date, the typical single-family home was about $330,000, down from approximately $365,000 one year earlier, said Rod Risling, manager of the city`s assessment and taxation branch.

This is the first consecutive drop in prices since the province began requiring annual market-value assessments in 1999, and probably hasn`t happened since the Alberta economy tanked in the 1980s, Risling told a news conference.

But in the longer term, local real estate is doing all right, when a price spike of 65 per cent in 2007 is factored in, he said.

"Over five years, it`s up 35-40 per cent, if you look at the average. It`s still relatively strong."

Every neighbourhood declined last year. Values in the five that were least affected -- Gold Bar, Chambery, Griesbach, Cloverdale and Westbrook Estates -- went down 4.2 per cent to 5.9 per cent.

The five hardest-hit areas -- Boyle Street, the rural northeast, Oliver, Inglewood and Prince Charles -- had drops between 17.4 per cent and 24 per cent.

Read the full article here.

 

[Ally]

Edmonton Assessment Maps and Property Values

The City provides an interactive online Map that you can use to review your assessed property value and compare it to your neighbours or any residential property in the City.

If you are interested in only your property, you can quickly determine its assessed value: what it may have sold for on the open market on July 1, last year, by entering your address in the My Property finder.

You can also use this to quickly determine your Ward and council representative, and features of your property.


Please click here to view.

 

[Ally]

Edmonton at a Crossroad

The building of a major arena in Edmonton has always been more than a construction project. It`s been a litmus test, a signifier of the city`s attitudes, wealth and vision.

Four times in the past--always during an economic boom--Edmonton has risen up to build what locals believed to be the very best of western Canadian hockey arenas, rivals to anything seen in Winnipeg, Vancouver or Calgary.

A vision of Edmonton as one of Canada`s main cities, a truly major league city, flourished at those times. As a result, it was seen as right and proper to create a showcase for the city.

At other times, though, haunted by economic recession or depression, and informed by the rural roots and fiscal conservatism of the population, city leaders and voters have fought hard against any kind of money going toward a project such as an arena building.

The weight of the past comes to bear today on Edmonton`s new arena debate. Some, such as former Edmonton Oilers owner Cal Nichols, are pushing for the public to invest heavily in a new downtown arena, a building that might well revitalize a massive, desolate chunk of Edmonton`s downtown, be the best building in the entire NHL, and become as iconic a structure for Edmonton as the CN Tower is for Toronto.

Read the full article here.

 

[Ally]

Groppe sees steady Oil Price

Henry Groppe of the Houston-based oil and gas forecasting firm Groppe, Long & Littell was in Canada a year ago for a series of presentations to clients of Middlefield Capital, a firm with which it has an exclusive relationship.

Groppe is the senior staffer at the firm, which prides itself on having employees who have a collective 130 years of experience in forecasting oil and gas prices.

Groppe, who started forecasting prices in 1955, predicted that by the end of 2009, the price of oil would be US$80 a barrel, or about twice its price at the time. Then, US$80 per barrel was hardly the conventional view. Indeed, one prominent U.S. investment bank had a US$25-a-barrel target while economists at some Canadian banks were talking about a similar number.

"Given enough time, it`s the fundamentals of supply and demand balances that control the price," Groppe said in an interview with the Financial Post. He based that forecast on a rise in oil consumption, a return of economic growth combined with static but reduced supply levels.

As events materialized, Groppe was about as spot on as any forecast could be. Given Groppe`s accuracy in forecasting oil prices in 2009, we decided to call him and ask about the current year.

Read the full article here.

 

[Ally]

Tortoise and Hare finish seen for Real Estate Recovery

CALGARY - The slow and steady recovery seen in 2009 numbers released by the Calgary Real Estate earlier this will continue through 2010, with modest gains of about three per cent in average resale homes, says Royal LePage.

In its monthly market forecast, the real estate company said including low inventory will keep prices in check this year.

"In January of 2009, the world was coming to an economic end," explained Ted Zaharko, broker and owner of Royal LePage Foothills.

"So what we experienced was moderate growth . . . and I think it would be unrealistic to go with much more aggressive increase in 2010 because, are we completely out of this recession? I don`t think we are."

Royal LePage`s quarter numbers show an increase of 2.3 per cent to $427,067 for Calgary`s average standard two-storey homes compared with the period in 2008.

Detached bungalows were up 0.5 per cent to $412,478 and condominiums fell by 0.4 per cent to $256,056.

Read the full article here.

 

[Ally]

Alberta Oilsands unfairly targeted: Report

Alberta`s oilsands are getting too much of the attention when it comes to the public debate about curbing Canada`s carbon emissions, a Conference Board of Canada study said Tuesday.

The board said curbing demand must be part of any plan to reduce emissions.

The report concluded the oilsands do not produce significantly more greenhouse gases than other sources of oil. It quoted an analysis that when considering the full chain of production, such as emissions created while shipping, refining, and consuming, oilsands crude results in between seven to 21 per cent more carbon than the lowest-emitting crude oil currently refined in the United States.

The board relied on an Environment Canada report that suggested road transportation in Canada in 2007 accounted for 137 million tonnes of emissions, or 18 per cent of Canada`s total. The oilsands accounted for 40 million tonnes in the same period, or five per cent.

The study said any climate change plan must strike a balance between producers and consumers of energy. Oilsands companies must continue to develop technology to reduce greenhouse gas production but consumers must also support efforts to reduce vehicle emissions.

Read the full article here.

 

[Ally]

Top Edmonton Realtor predicts growth in 2010

EDMONTON — Edmonton`s housing markets will grow in 2010, but don`t expect the runaway sales and prices of the housing boom, industry representatives said at a realtors` forum Wednesday.

The resale market will go through 2010 the same way it left 2009 -- stable and steady, Larry Westergard, president of the Realtors Association of Edmonton, said at the group`s annual housing forecast seminar.

Sales and average home prices will both grow moderately, Westergard said.

Residential sales are expected to reach 21,000 homes this year, up about 10.5 per cent from the 19,000 residential properties sold in 2009.

Allowing for a small range of seasonal monthly variations, prices for single family homes are expected to gain about five per cent to $385,000 at year`s end, up from today`s $367,000, he said.

"Most of the rise in the market will be in the single-family-home market," Westergard said.

Read the full article here.

 

[Ally]

Oilpatch services back from bottom of the barrel

It`s hardly shaping up to be a banner year for drillers and other oilfield-services firms.

But after surviving a near-death experience in early 2009, operators are finally starting to see some light at the end of the tunnel.

Prices for crude oil and natural gas have climbed out of the basement, rig utilization rates are edging up, stock prices have rebounded, and analysts are again bumping up their forecasts.

Peters & Co. analyst Todd Garman recently hiked his 2010 drilling forecast to 11,000 wells, up from 9,000 wells previously.

He also raised his related capital spending estimate for drilling, casing and well completions this year to $15.8 billion, up from an initial forecast of $12.3 billion.

UBS Securities also expects a somewhat better year ahead -- it`s calling for 10,000 wells to be drilled in 2010. That`s up from just 8,300 wells last year, when activity levels plunged to the lowest levels since the late 1990s.

Read the full article here.

 

[Ally]

Huge Oilsands expansion gets green light

EDMONTON — A multibillion-dollar expansion of the Surmont oilsands project announced Tuesday will create up to 2,500 construction jobs over the next five years and then 300 permanent operating jobs.

Oil production at the in situ project 63 kilometres southeast of Fort McMurray will jump from 27,000 barrels per day to 110,000 bpd by 2015.

It is just the latest good news for the oilpatch as firms take advantage of higher oil prices and lower construction costs compared with last year.

Suncor recently announced it would spend $900 million this year to resume work at the Firebag 3 in situ project.

And ExxonMobil and Imperial Oil have started work on the first stage of their $8-billion Kearl oilsands project.

"There are indications from operators that prices have fallen 10 to 40 per cent from the peak we saw in 2008," said Chris Feltin, an analyst with Macquarie Securities Canada.

Read the full article here.

 

[Ally]

B.C. mines minister predicts resurgence in 2010 after after rocky `09

VANCOUVER — Expectations are high for a resurgence in British Columbia`s mineral exploration sector after a difficult year in 2009.

Mineral exploration investment fell to $154 million in 2009 compared to $367 million a year earlier, Minister of State for Mining Randy Hawes said in Vancouver at the annual Roundup conference of the Association for Mineral Exploration.

Despite that shortfall, Hawes noted, last year was the sixth best for investment in exploration and new mine development since 1989.

Hawes told the conference that he believes investment will increase this year compared to 2009 because of continued strength in mineral commodity prices.

"The economic turnaround and recovery in world economies has led to a higher demand for minerals and strong copper and gold prices trending up throughout 2009," Hawes said in a morning address to Roundup delegates.

"Exploration activity rallied very late in the year as a result of high copper and gold prices and there is lots of reason to be optimistic for 2010.

"Mining is going to lead the economic recovery in our province.

Read the full article here.

 

[Ally]

Canada has options for Oilsands production, think-tank says

Arespected American think-tank is urging the Obama government to think twice before introducing environmental measures that would disadvantage Alberta`s oilsands.

"Washington may find that if it pushes too hard or too fast with carbon-cutting legislation targeting the oilsands, its friendly neighbour might finally grow tired of being taken for granted when it comes to oil," warns the Council on Hemispheric Affairs.

The 35-year-old Washington, D.C.-based organization, described by U.S. media as a liberal think-tank, states in a recently released report: "Canada can and likely will push back, especially since China is more than happy to step in and purchase oil . . . if the U.S. chooses not to."

That prospect is taking on enhanced credibility as planning proceeds for the Northern Gateway pipeline project to carry oilsands petroleum to Kitimat in northern B.C. for potential shipment to Asia.

The warning issued by the American think-tank resurrects a controversial theme first floated in the 1990s by the Chretien government, that perhaps Canada could use oil as a potentially powerful political tool in talks related to a Canada-U. S. softwood lumber trade deal. The notion was quickly rejected.

What makes this report interesting is that Canadians tend to believe that they have few levers to influence American policy making. And that it would be too risky to ever use oil as a bargaining chip.

Read the full article here.

 

[Ally]

A big rock, a big boom, and now - big ideas

Everything seems to be larger than life in Alberta. The mountains. The sky. The trucks.

It is only fitting that Alberta should also be home to North America`s largest glacial erratic - a particularly impressive curiosity for geologists as well as sightseers who pass through Okotoks, a commuter town about 40 kilometres south of Calgary`s city limits.

Plunked down on the rolling prairie of the Sheep River Valley sits "Big Rock," a massive boulder dropped there randomly 10,000 years ago, far from Jasper, where it originated when the glaciers were in retreat during the last ice age.

Big Rock was a reference point for aboriginal people on their travels and went by various names, but it was the Blackfoot word okatoks, which translates to rock, that stuck.

Today, it no longer stands alone. One of Alberta`s most desirable and environmentally friendly boom towns has grown up around it.

As he surveys the erratic and nearby Rocky Mountains, Okotoks Mayor Bill McAlpine isn`t surprised by his community`s allure.

"Just take a look," he says.

Read the full article here.

 

[Ally]

Husky, BP ready for $2.5B Sunrise Oilsands project

CALGARY - Husky Energy got the go-ahead Wednesday for its $2.5-billion Sunrise oilsands project in northern Alberta -- a project that`s also come in under budget.

The company has completed front-end engineering and received necessary regulatory approvals to proceed with the project later this year. Husky said the final price tag is more than $1 billion under its original estimate of $3.8 billion to $4 billion.

"Under the current market environment and the applied facility design for Phase 1, the Sunrise oilsands project has been able to achieve a solid sustainable economic return," chief executive John Lau said in a statement.

Pending formal sanction by Husky and partner BP, construction is scheduled to begin in the second half of this year with first oil in 2014. The initial first phase is expected to produce 60,000 barrels per day, ramping up 200,000 bpd by 2020.

Most of the oil will wind up in a Toledo, Ohio, refinery under a refining and production joint venture created by the two companies in 2008.

Read the full article here.

 

[Ally]

Stelmach signs agreement with Abu Dhabi oil company

EDMONTON — Alberta may be sharing notes on its $2-billion investment in carbon capture with a Middle East oil company.

On a trip to the capital of the United Arab Emirates this week, Premier Ed Stelmach signed a memorandum of understanding on carbon capture and storage with Masdar, a company owned by the government of Abu Dhabi.

According to a news release issued by the Alberta government Wednesday, the agreement "commits Alberta and Abu Dhabi to share information on CCS technologies and policies, support projects of mutual interest, and explore opportunities for collaboration between public and private partners in both jurisdictions."

The carbon-capture agreement is one of two understandings Stelmach has signed off on; he also ends his trade mission with a deal to enhance economic co-operation between the governments of Abu Dhabi and Alberta.

Stelmach was in the United Arab Emirates this week to speak as a panellist at the World Future Energy Summit.

Both agreements were on his agenda when he left Edmonton for the six-day trip.

Read the full article here.

 

[Ally]

No-Frills retirement awaits most Canadians: poll

Few Canadians see themselves sailing a yacht or taking a trip around the world in their retirement, according to the results of the annual RBC RRSP poll released Monday.

Although 90 per cent of Canadians feel they will have enough income to cover their necessities in retirement, only 25 per cent of Canadians feel they will have enough money to fulfil their retirement dreams.

"How much money you`ll need in retirement depends on how you`ll be spending your time, with many Canadians underestimating the amount they will need," Lee Anne Davies, head of retirement strategies at RBC Royal Bank, said in a statement.

The poll of 1,457 Canadian adults, conducted by Ipsos Reid between Oct. 21 and Nov. 2 of last year, also showed that 75 per cent of those already in retirement said they didn`t know how much they spent in their first year in retirement --virtually the same as 2008, when 76 per cent said they didn`t keep a budget.

Of the 25 per cent who did keep track of their finances, their spending was cut by 31 per cent on average in their first year of retirement from $51,000 in 2008 to $35,000 in 2009. However, 52 per cent said they still spent more than expected, up from 46 per cent in 2008.

The study also found that 48 per cent of Canadians who were still in the workforce were most worried about having enough savings, while only 29 per cent of retirees had this concern. Forty per cent of both pre-retirees and retirees said they were concerned about maintaining their standard of living. One in three retirees said health-care coverage is a concern, compared to only 28 per cent for those still in the workforce.

Read the full article here.

 

[Ally]

Taxes, utilities among nation`s highest

Edmonton has the third-highest average property taxes and utility charges in Canada, a survey of 21 municipalities found.

The annual study done by the city shows that in 2009 the average single-family Edmonton homeowner paid $4,455 in property taxes and fees for power, water, sewer and garbage collection, or $344 more than in Calgary.

The results, released last week, are a virtual reversal of 2008, when Edmonton was in seventh place behind Calgary and local homeowners paid about $300 less than their southern Alberta counterparts.

Senior growth analysis planner Janet Omelchuk, co-author of the report, said Monday one factor in the change was switching Edmonton garbage collection, disposal and recycling to a utility funded by user fees rather than partly supported by property taxes.

"If you look at property taxes individually, we didn`t change a lot, but if you look at utilities, that`s reflected," she said.

"Some came off the taxes, but not enough to offset it."

Read the full article here.

 

[Ally]

$1-Billion saved in Sunrise project cost

CALGARY - Husky Energy Inc. and BP PLC have chopped $1-billion off the estimated cost of their planned oil sands project thanks to technological tweaks, better engineering and the weakened economy.

The first phase of the Sunrise project also received regulatory approvals necessary to proceed, Husky said yesterday.

It now expects the steam-assisted gravity drainage project to cost about $2.5-billion, down from its earlier estimate of $3.8-billion and an original forecast of $4-billion. Husky expects to produce bitumen at Sunrise in 2014.

"I think it is still high," Laura Lau, an energy and resources fund manager at Sentry Select Capital Corp., said of the reduced price tag. The project is near Suncor Energy Inc.`s Firebag operation, which she said should be used as a yardstick when comparing costs.

"It should have been in line with Suncor`s estimate in the first place," she said.

Husky`s reviewed the project for 11 months before coming out with its latest estimate, according to Graham White, a spokesman for the Calgarybased company. Husky operates Sunrise.

Read the full article here.