June 2011 Alberta Economic Fundamentals
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Oilsands poised to flood Alberta government coffers by 2044
EDMONTON - Alberta`s oilsands could deliver $67.5 billion a year into provincial government coffers by 2044, says a new report from the Canadian Energy Research Institute (CERI) released Monday.
And by that time, the total paid over the decades to Alberta will be close to an astounding $1.1 trillion.
In its annual industry update, CERI takes its `realistic scenario` of growth to also estimate that oilsands production will grow from 2.1 million barrels per day in 2015 to 4.8 mbpd by 2030 and 5.1 mbpd by 2042.
But to achieve that, $257 billion will be needed in capital investment to build the facilities.
Read the full article here.
EDMONTON - Alberta`s oilsands could deliver $67.5 billion a year into provincial government coffers by 2044, says a new report from the Canadian Energy Research Institute (CERI) released Monday.
And by that time, the total paid over the decades to Alberta will be close to an astounding $1.1 trillion.
In its annual industry update, CERI takes its `realistic scenario` of growth to also estimate that oilsands production will grow from 2.1 million barrels per day in 2015 to 4.8 mbpd by 2030 and 5.1 mbpd by 2042.
But to achieve that, $257 billion will be needed in capital investment to build the facilities.
Read the full article here.
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Busy year prompts 24% spike in Canadian drilling forecast
EDMONTON - Western Canada`s drilling industry has been busier than expected so far this year, prompting the Canadian Association of Oilwell Drilling Contractors (CAODC) to raise its forecast by 24 per cent for the rest of 2011.
In the first three months, rig utilization averaged 68 per cent, about 11 per cent higher than the CAODC projection released in October. The industry ran an average of 534 drilling rigs, up from the 480 that was anticipated.
The first-quarter strength in activity was based on high commodity prices, a favourable investment climate and good `geology,` CAODC said in a release Wednesday.
Read the full article here.
EDMONTON - Western Canada`s drilling industry has been busier than expected so far this year, prompting the Canadian Association of Oilwell Drilling Contractors (CAODC) to raise its forecast by 24 per cent for the rest of 2011.
In the first three months, rig utilization averaged 68 per cent, about 11 per cent higher than the CAODC projection released in October. The industry ran an average of 534 drilling rigs, up from the 480 that was anticipated.
The first-quarter strength in activity was based on high commodity prices, a favourable investment climate and good `geology,` CAODC said in a release Wednesday.
Read the full article here.
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Ledcor launches hiring drive
EDMONTON - In a sign that labour shortages have returned to Alberta, a major industrial employer launched a hiring campaign Tuesday to attract 9,000 workers in 2011.
Ledcor Industries Inc. has already hired 3,800 workers so far this year.
The need is so urgent that Ledcor building division vice-president Bob Walker warned some planned industrial projects may not go ahead.
`Whenever there are quotes about the size of projects, it`s often 50 per cent labour and 50 per cent material,` Walker said.
Read the full article here.
EDMONTON - In a sign that labour shortages have returned to Alberta, a major industrial employer launched a hiring campaign Tuesday to attract 9,000 workers in 2011.
Ledcor Industries Inc. has already hired 3,800 workers so far this year.
The need is so urgent that Ledcor building division vice-president Bob Walker warned some planned industrial projects may not go ahead.
`Whenever there are quotes about the size of projects, it`s often 50 per cent labour and 50 per cent material,` Walker said.
Read the full article here.
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Drilling rights fetch record $842M for Alberta
CALGARY ` Alberta will rake in $842 million from its largest sale of oil and gas drilling rights on record ` including a whopping $107 million for a 7,900-hectare licence northwest of Red Deer.
Alberta Energy reported Wednesday afternoon it had sold leases or licences on 271,000 hectares at an average price of $3,100 per hectare.
The sale almost doubles the provincial take ` in nine sales through May, it had raised $902 million at just $694 per hectare ` and puts it on track to beat the record of $2.39 billion set in 2010.
Read the full article here.
CALGARY ` Alberta will rake in $842 million from its largest sale of oil and gas drilling rights on record ` including a whopping $107 million for a 7,900-hectare licence northwest of Red Deer.
Alberta Energy reported Wednesday afternoon it had sold leases or licences on 271,000 hectares at an average price of $3,100 per hectare.
The sale almost doubles the provincial take ` in nine sales through May, it had raised $902 million at just $694 per hectare ` and puts it on track to beat the record of $2.39 billion set in 2010.
Read the full article here.
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Edmonton council open to debate on downtown LRT route
EDMONTON ` Under pressure from community and education groups, Edmonton city council agreed Wednesday to do more public consultation on the proposed downtown LRT route.
Members of the Chinese Benevolent Society and nearby community leagues expressed concern last week about plans to begin an LRT tunnel into the river valley on 102nd Avenue west of 95th Street.
They say it would disrupt local Chinese institutions and make it hard for seniors to reach cultural buildings on the south side of the street, which are also threatened by plans to widen the avenue.
Read the full article here.
EDMONTON ` Under pressure from community and education groups, Edmonton city council agreed Wednesday to do more public consultation on the proposed downtown LRT route.
Members of the Chinese Benevolent Society and nearby community leagues expressed concern last week about plans to begin an LRT tunnel into the river valley on 102nd Avenue west of 95th Street.
They say it would disrupt local Chinese institutions and make it hard for seniors to reach cultural buildings on the south side of the street, which are also threatened by plans to widen the avenue.
Read the full article here.
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Oilsands poised to flood Alberta government coffers by 2044
EDMONTON - Alberta`s oilsands could deliver $67.5 billion a year into provincial government coffers by 2044, says a new report from the Canadian Energy Research Institute (CERI) released Monday.
And by that time, the total paid over the decades to Alberta will be close to an astounding $1.1 trillion.
In its annual industry update, CERI takes its `realistic scenario` of growth to also estimate that oilsands production will grow from 2.1 million barrels per day in 2015 to 4.8 mbpd by 2030 and 5.1 mbpd by 2042.
But to achieve that, $257 billion will be needed in capital investment to build the facilities.
Read the full article here.
EDMONTON - Alberta`s oilsands could deliver $67.5 billion a year into provincial government coffers by 2044, says a new report from the Canadian Energy Research Institute (CERI) released Monday.
And by that time, the total paid over the decades to Alberta will be close to an astounding $1.1 trillion.
In its annual industry update, CERI takes its `realistic scenario` of growth to also estimate that oilsands production will grow from 2.1 million barrels per day in 2015 to 4.8 mbpd by 2030 and 5.1 mbpd by 2042.
But to achieve that, $257 billion will be needed in capital investment to build the facilities.
Read the full article here.
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China, not U.S. key to global oil demand
What`s more important to world oil demand - gasoline prices (XRB-FT2.980.010.50%) in the U.S. that are nearly $4 a gallon, or power rationing in China?
To Americans, of course, it`s the former. But to world oil markets, the latter may be a far more significant indication of where oil prices will be heading this summer.
Read the full article here.
What`s more important to world oil demand - gasoline prices (XRB-FT2.980.010.50%) in the U.S. that are nearly $4 a gallon, or power rationing in China?
To Americans, of course, it`s the former. But to world oil markets, the latter may be a far more significant indication of where oil prices will be heading this summer.
Read the full article here.
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Oil patch set to be in full swing this summer
The rush to tap new crude plays in western Canada is driving renewed optimism in the oil patch, which is now predicting near-record activity levels this year.
After a strong winter season, the industry is now boosting by 20 per cent its prediction of the number of drilling operating days this year, a key industry metric that shows how much work is being done.
Read the full article here.
The rush to tap new crude plays in western Canada is driving renewed optimism in the oil patch, which is now predicting near-record activity levels this year.
After a strong winter season, the industry is now boosting by 20 per cent its prediction of the number of drilling operating days this year, a key industry metric that shows how much work is being done.
Read the full article here.
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Shale gas 'fracking' halted after possible quake link
Already under fire over perceived threats to local water sources, the natural gas industry is facing a new challenge: earthquakes.
A small energy company halted its shale gas drilling and hydraulic fracturing program in Britain after two mild earthquakes were recorded in the vicinity, an area where such tremors are rare.
Read the full article here.
Already under fire over perceived threats to local water sources, the natural gas industry is facing a new challenge: earthquakes.
A small energy company halted its shale gas drilling and hydraulic fracturing program in Britain after two mild earthquakes were recorded in the vicinity, an area where such tremors are rare.
Read the full article here.
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OPEC mulls oil supply boost to calm prices
SINGAPORE - OPEC is considering raising crude oil supply next week for the first time since 2007 in a move that could weaken $100-a-barrel oil prices and lessen the drag of high energy costs on global economic growth.
The Organization of the Petroleum Exporting Countries, which pumps more than a third of the world's oil, may raise supply targets by as much as 1.5 million barrels per day (bpd) when ministers meet in Vienna on June 8, a delegate said Thursday.
"There is a need for an increase to replace the loss from Libya," the delegate said. "Oil prices are too high. ` $100 oil is scaring people."
Read the full article here.
SINGAPORE - OPEC is considering raising crude oil supply next week for the first time since 2007 in a move that could weaken $100-a-barrel oil prices and lessen the drag of high energy costs on global economic growth.
The Organization of the Petroleum Exporting Countries, which pumps more than a third of the world's oil, may raise supply targets by as much as 1.5 million barrels per day (bpd) when ministers meet in Vienna on June 8, a delegate said Thursday.
"There is a need for an increase to replace the loss from Libya," the delegate said. "Oil prices are too high. ` $100 oil is scaring people."
Read the full article here.
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Record land sales underscore new interest in oil plays
Energy companies spent an eye-popping $842-million on Wednesday to snap up oil and gas land in Alberta in a sale that shatters the previous Canadian record.
The sale is further proof of the massive attention industry is paying to a series of lucrative new oil plays, where advances in technology are bringing oil to surface from areas once thought tapped-out.
Read the full article here.
Energy companies spent an eye-popping $842-million on Wednesday to snap up oil and gas land in Alberta in a sale that shatters the previous Canadian record.
The sale is further proof of the massive attention industry is paying to a series of lucrative new oil plays, where advances in technology are bringing oil to surface from areas once thought tapped-out.
Read the full article here.
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Troubled Waters: The rough side of real estate investing in Alberta
When property developers Bill Bradley and Colin Becker arrived in Crowsnest Pass, the business partners declared that their company, Bridgegate Development Corp., which later became known as Bridgecreek, would turn the area into a Rocky Mountain resort destination.
In the mountainous corner of southwestern Alberta, Bridgecreek proposed two developments. Both were billed as luxurious and every bit as sophisticated as Canmore and Fernie. Bradley called it one of the most exciting projects of his life. `It`s going to be so phenomenal, not only for the Crowsnest Pass, but for the whole world,` he told local media.
The community didn`t realize Bridgecreek had already started another real estate development project that was left unfinished in Canmore. The municipality let Bridgecreek start laying the groundwork for construction.
Read the full article here.
When property developers Bill Bradley and Colin Becker arrived in Crowsnest Pass, the business partners declared that their company, Bridgegate Development Corp., which later became known as Bridgecreek, would turn the area into a Rocky Mountain resort destination.
In the mountainous corner of southwestern Alberta, Bridgecreek proposed two developments. Both were billed as luxurious and every bit as sophisticated as Canmore and Fernie. Bradley called it one of the most exciting projects of his life. `It`s going to be so phenomenal, not only for the Crowsnest Pass, but for the whole world,` he told local media.
The community didn`t realize Bridgecreek had already started another real estate development project that was left unfinished in Canmore. The municipality let Bridgecreek start laying the groundwork for construction.
Read the full article here.
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Canada exporters face headwinds: Ed Fast
OTTAWA ` Canada`s new trade minister cautioned on Thursday that the strong currency and growing competition from emerging economies could stall the country`s export growth.
In his inaugural speech, Ed Fast promised quick action on the Conservative government`s trade agenda, including signing free trade agreements with the European Union and India, deepening ties with the United States and penetrating new markets in Asia.
But he added that `competitiveness challenges` remain.
Read the full article here.
OTTAWA ` Canada`s new trade minister cautioned on Thursday that the strong currency and growing competition from emerging economies could stall the country`s export growth.
In his inaugural speech, Ed Fast promised quick action on the Conservative government`s trade agenda, including signing free trade agreements with the European Union and India, deepening ties with the United States and penetrating new markets in Asia.
But he added that `competitiveness challenges` remain.
Read the full article here.
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Is Calgary's boom back?
CALGARY - From BMWs to Bentleys to a good bottle of wine, Calgary consumers are opening their wallets in what's being described as more than just a recovering economy - with some even willing to say the word "boom" again.
Retailer Wayne Henuset is in the thick of it, discovering his own barometer to measure what is quickly turning into a healthier marketplace.
The owner of Willow Park Wines and Spirits says consumer confidence has been rising "with a vengeance" since fall.
Read the full article here.
CALGARY - From BMWs to Bentleys to a good bottle of wine, Calgary consumers are opening their wallets in what's being described as more than just a recovering economy - with some even willing to say the word "boom" again.
Retailer Wayne Henuset is in the thick of it, discovering his own barometer to measure what is quickly turning into a healthier marketplace.
The owner of Willow Park Wines and Spirits says consumer confidence has been rising "with a vengeance" since fall.
Read the full article here.
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Calgary luxury home sales balloon
CALGARY ` Luxury home sales in Calgary have soared this year compared with a year ago, according to a report released Wednesday by RE/MAX.
The real estate firm noted that 145 homes have sold from more than $1 million year-to-date until the end of April, a 51 per cent hike from the 96 sold for the same period in 2010.
Tamara Pilipchuk, a realtor with RE/MAX House of Real Estate in Calgary, said some key factors contributing to the rise in the luxury market are the resurgence of the oil and gas industry, the recovery of the stock market and the overall economic performance of the city.
Read the full article here.
CALGARY ` Luxury home sales in Calgary have soared this year compared with a year ago, according to a report released Wednesday by RE/MAX.
The real estate firm noted that 145 homes have sold from more than $1 million year-to-date until the end of April, a 51 per cent hike from the 96 sold for the same period in 2010.
Tamara Pilipchuk, a realtor with RE/MAX House of Real Estate in Calgary, said some key factors contributing to the rise in the luxury market are the resurgence of the oil and gas industry, the recovery of the stock market and the overall economic performance of the city.
Read the full article here.
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Emerging central Alberta plays drove record rights sale
CALGARY - Alberta`s largest oil and gas land rights sale in history demonstrates the industry`s willingness to pay big cash for emerging resource plays, observers said Thursday.
The majority of the 271,000 hectares of land rights sold Wednesday to net the province about $842 million are northwest of Red Deer near the small community of Rimbey, where most activity lately has targeted Cardium for tight oil, among 15 other formations, but where major and junior players are starting to look at what they could earn by tapping the deeply buried Duvernay shale.
The average successful bid price of $3,100 per hectare ` which topped the record of $2,200 set in July 2010 ` comes as oil prices, hovering around $100 US a barrel for West Texas Intermediate, remain high enough that marginal areas look more promising with newer technology.
Read the full article here.
CALGARY - Alberta`s largest oil and gas land rights sale in history demonstrates the industry`s willingness to pay big cash for emerging resource plays, observers said Thursday.
The majority of the 271,000 hectares of land rights sold Wednesday to net the province about $842 million are northwest of Red Deer near the small community of Rimbey, where most activity lately has targeted Cardium for tight oil, among 15 other formations, but where major and junior players are starting to look at what they could earn by tapping the deeply buried Duvernay shale.
The average successful bid price of $3,100 per hectare ` which topped the record of $2,200 set in July 2010 ` comes as oil prices, hovering around $100 US a barrel for West Texas Intermediate, remain high enough that marginal areas look more promising with newer technology.
Read the full article here.
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Oil prices fall on week U.S. job data
LONDON ` Oil fell further on Friday as closely watched data showed U.S. employment rose far less than expected in May, recording its weakest reading since September and casting a pall over demand prospects.
The jobless rate in the United States rose to 9.1 per cent as high energy prices and the effects of Japan`s earthquake bogged down the world top economy.
By 1329 GMT, Brent crude futures were down $1.51 to $114.03 a barrel. U.S. crude fell $1.88 to $98.52.
Read the full article here.
LONDON ` Oil fell further on Friday as closely watched data showed U.S. employment rose far less than expected in May, recording its weakest reading since September and casting a pall over demand prospects.
The jobless rate in the United States rose to 9.1 per cent as high energy prices and the effects of Japan`s earthquake bogged down the world top economy.
By 1329 GMT, Brent crude futures were down $1.51 to $114.03 a barrel. U.S. crude fell $1.88 to $98.52.
Read the full article here.
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Calgary single-family sales and prices increase in May
CALGARY ` Single-family MLS sales and the average sale price rose in May compared with a year ago, according to the Calgary Real Estate Board.
In releasing its monthly data Wednesday, CREB said there were 1,313 single-family transactions for an average price of $489,482 during the month. Sales were up 4.04 per cent from the 1,262 sales in May 2010 and the average price increased by 1.29 per cent from the $483,240 a year ago.
However, the condominium market continues to be slow. In May, 503 condos sold for an average price of $287,384. Sales were down 2.9 per cent from a year ago (518) and the average price was off by 5.67 per cent from May 2010 ($304,662).
Read the full article here.
CALGARY ` Single-family MLS sales and the average sale price rose in May compared with a year ago, according to the Calgary Real Estate Board.
In releasing its monthly data Wednesday, CREB said there were 1,313 single-family transactions for an average price of $489,482 during the month. Sales were up 4.04 per cent from the 1,262 sales in May 2010 and the average price increased by 1.29 per cent from the $483,240 a year ago.
However, the condominium market continues to be slow. In May, 503 condos sold for an average price of $287,384. Sales were down 2.9 per cent from a year ago (518) and the average price was off by 5.67 per cent from May 2010 ($304,662).
Read the full article here.
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Global real estate firm establishes Calgary presence
CALGARY ` An international giant in the commercial real estate industry is partnering with an independent Calgary company to take advantage of the growing economy and potential in the city and in Alberta.
Effective today, Newmark Knight Frank Devencore has established a partnership with Calgary`s CITI Commercial.
`We were looking for a partner and Calgary is a booming market,` said Agron Miloti, president of Calgary-based CITI Commercial which he founded in 1999. `We found a perfect match ` a global company that provides excellent service for clients.
Read the full article here.
CALGARY ` An international giant in the commercial real estate industry is partnering with an independent Calgary company to take advantage of the growing economy and potential in the city and in Alberta.
Effective today, Newmark Knight Frank Devencore has established a partnership with Calgary`s CITI Commercial.
`We were looking for a partner and Calgary is a booming market,` said Agron Miloti, president of Calgary-based CITI Commercial which he founded in 1999. `We found a perfect match ` a global company that provides excellent service for clients.
Read the full article here.