June 2012 Alberta Economic Fundamentals

[Ally]

Canadians continue to be Alberta bound




No surprise here.




People from other parts of the country are moving to Alberta in droves.




Might have something to do with the booming economy and the number of jobs it`s creating here these days.




According to economist Robert Kavcic, of BMO Capital Markets, net interprovincial migration in Alberta continues to surge, reaching more than 27,000 people in the four quarters through the first quarter of 2012.





Read the full article here.

 

[Ally]

CN to ship Alberta firm's bitumen to the Gulf Coast





CALGARY ` Southern Pacific Resource Corp. has signed a deal with Canadian National Railway Co. to ship bitumen to the U.S. Gulf Coast by rail.




The company hopes the deal will help cut diluent costs and generate a higher price than if it shipped the bitumen by pipeline.




Diluent is used to make oilsands bitumen thin enough to flow through pipelines.




Southern Pacific`s bitumen will be trucked about 60 kilometres from its steam-assisted gravity drainage project to Lynton, Alta., a CN rail terminal south of Fort McMurray, Alta.






Read the full article here.

 

[Ally]

Malaysia's Petronas to buy Progress Energy deal worth $5.5 billion



CALGARY ` Malaysia`s state-owned oil and gas company is offering $5.5 billion to buy Progress Energy Resources Corp., its partner in an effort to tap Canadian natural gas for export by ship from British Columbia.





Petronas says the Calgary-based company will strengthen its position as a supplier of liquefied natural gas.





Progress Energy chief executive Michael Culbert says his company requires extensive funding to get into international LNG markets and believes the Malaysian company has the necessary resources.

The two companies have already been working together on a project to tap natural gas in northeastern British Columbia and export it in liquefied form ` an alternative to shipping gas by pipeline across North America.





Read the full article here.

 

[Ally]

Mega history lessons for the oil sands





I suggested recently in this space that the Canadian petroleum industry is more politicized than at any time since the 1980 National Energy Program, although the politics are different. Then it was the fight between Pierre Trudeau`s Ottawa and Peter Lougheed`s Alberta over sharply higher prices. Now, it is the Harper government`s energy-superpower visions versus a transnational environmental movement that wants to block pipelines and kill the `dirty` oil sands.



In one respect, however, there is a considerable similarity between the Harper Conservatives and their dirigiste counterparts of 30 years ago: Both projected a boom in oil sands production. How great a danger is there that Mr. Harper`s aspirations may be undone ` as were 1980s projections ` by a market downturn?



Read the full article here.

 

[Ally]

Oil companies approach Ontario manufacturing sector as patrons




Faced with an impending labour shortage and a desperate need for equipment, Alberta`s oil and gas industry is hoping to breathe new life into Ontario`s struggling manufacturing industry.




That was the message a delegation from the Calgary-based In Situ Oil Sands Alliance brought to southwestern Ontario earlier this week during a tour that brought industry executives to Windsor, Sarnia and London.




`Alberta is expecting to triple development in the next 20 years, but is also facing a heavy demand for equipment and services,` Patricia Nelson, vice-chair of the IOSA and leader of the delegation told Today. `It has been suggested to us for some time that we explore that region`s industries and see how that region would be able to help us with our long-term needs and our long-term growth.`





Read the full article here.

 

[Ally]

Calgary top for commercial real estate world wide






According to this month`s global survey by Investment Property Databank Ltd, in which the top 10 locations were all in North America, Rental income and higher property values in Calgary produced a return of 21.6 percent.




Booming oil and gas industries and a restricted supply were credited for the high rate, IPD said. The next three cities after Calgary were San Diego (19.5 per cent), Portland (18.0 per cent) and Seattle (17.7 per cent).




"An energy-driven economic boom in Alberta . . . generally benefited the city, and brokers reported prime office space in the central business district to be near full occupancy at year-end," the report says.




The report will draw international investors to the area, says Susan Thompson, business development manager for real estate with Calgary Economic Development.





Read the full article here.

 

[Ally]

Calgary house sale activity sparks memories of 2007





CALGARY ` Recent activity in the Calgary real estate market has discount realtor Roy Almog thinking back to the frenzied days of 2007.




In late June, he listed a `modest` house in the northwest neighbourhood of Mount Pleasant. In less than 24 hours, it had 14 showings and nine offers. The house sold for close to $30,000 above the asking price in less than 20 hours on the market.




`It was like 2007 all over again,` said Almog of 2% Realty.






Read the full article here.

 

[Ally]

Springbank residents protesting huge 'suburban village' development near airport





CALGARY ` Residents of one of Canada`s wealthiest postal codes are hoping to derail a development that could see the eventual construction of a 10,000-person suburban village in the sprawling acreage country west of Calgary.




Two dozen Springbank residents held an emergency meeting Monday to protest the proposed development ` the first phase of which is expected to go before Rocky View council today ` and are pinning their hopes on a new council overturning the decisions of past councillors.






Read the full article here.

 

[Ally]

Americans favour Keyston XL pipeline




OTTAWA - It seems the majority of Americans are in favour of building the proposed the Alberta-Texas Keystone XL pipeline.




A recent poll published by the Washington Post newspaper indicates Americans are firmly behind energy infrastructure giant TransCanada's plan to ship 700,000 barrels a day of Alberta bitumen to Gulf Coast refineries. Just over 60% of registered voters polled said the government should approve the building of the pipeline. Along party lines, that broke down to 48% support among registered Democrats and 82% among Republican supporters.





Read the full article here.