May 2011 Alberta Economic Fundamentals

[Ally]

Calgary has most attractive housing affordability in Canada: RBC





CALGARY ` Calgary and Edmonton are the major Canadian cities where housing affordability is the most attractive, says a new real estate report released Friday.




But the RBC Housing Affordability report says signs are accumulating that the Calgary housing market is finally overcoming its protracted slump and entering a more vigorous phase.




`Home resales grew for the second consecutive time in the first quarter of this year, advancing the most since the middle of 2009,` says the report. `This helped remove even more of the earlier market slack and set a healthier balance between demand and supply.




Read the full article here.

 

[Ally]

Alberta leads country in consumer price increase





CALGARY ` Consumer prices in Alberta rose by the highest monthly rate in the country in April, according to Statistics Canada.




The federal agency said prices were up 1.2 per cent from the previous month. On a year-over-year basis in Alberta, prices advanced 3.0 per cent following a 2.0 per cent hike in March.




`The faster increase in April was primarily the result of a 59.6 per cent gain in electricity prices,` said Statistics Canada. `The large year-over-year increase in electricity costs in the province is partly explained by the fact that electricity prices in April 2010 were among the lowest recorded since 2005. As well, the recent closing of two power generation plants resulted in a significant reduction of electricity supply. Alberta consumers also paid more for gasoline (24.0 per cent).`




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[Ally]

Expect to pay more for fuel, power this summer in Calgary: National Energy Board





CALGARY ` Be prepared to pay more for power and fuel this summer in Alberta, according to the latest price outlook by the National Energy Board.




Although gasoline prices have eased somewhat since jumping earlier in the month, oil prices averaging $100 US per barrel to $120 US per barrel over the summer likely will cause renewed pain at the pump, the board said Thursday.




Unrest in the Middle East, the crisis in Japan and China`s growing demand for energy all factored into the boards expectations of continued high prices for oil.




Read the full article here.

 

[Ally]

In private, Mark Carney offers a less rosy outllook




Mark Carney gave a few members of the public an unusually candid glimpse into his thinking at a private dinner Wednesday night, during which he said people should not judge how well Canada emerged from the recession for years because the financial crisis is not really over.




Speaking at a fundraising event held by the United Jewish Appeal Federation of Greater Toronto, Mr. Carney, the Bank of Canada Governor, painted a stark picture of the global rebound. He also suggested that America's deficit troubles ` which he warned this week could threaten Canada's economy ` would probably not be addressed until after next year's presidential election.





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[Ally]

Upcoming oilsands brawl could forever damage Alberta





With the federal election over and Prime Minister Stephen Harper's majority entrenched, a monumental battle is looming over the oilsands.




The provincial PCs have known for at least two years, of course, that the feds would come after Canada's most valuable resource.




In a frantic effort to stave off Ottawa intervention, Premier Ed Stelmach's Tories have pumped up regulation, prosecuted companies, and wailed in anguish at the death of birds they would happily shoot in season.




But Ed's troops have never sounded all that tough with Ottawa because they didn't want to weaken Harper.




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[Ally]

Alberta finance minister: Ottawa's plans to regulate oilsands hypocritical





CALGARY ` As Ottawa prepares to regulate Alberta`s oilsands, the Stelmach government says it`s `very concerned` about federal intervention and is accusing the Harper Conservatives of being hypocrites when it comes to the lucrative resource.




Federal Environment Minister Peter Kent announced last week that Ottawa will introduce later this year environmental regulations for the oilsands sector designed to reduce greenhouse gases spewed from one of the country`s largest-emitting industries.




The Alberta government is girding for the regulations, but also venting over contents of a U.S. diplomatic cable that shows the Harper government believed Canada was `too slow` in countering dirty oil criticisms of the oilsands and doing too little to protect the environment.




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[Ally]

Alberta's oil production is rising again





After decades of decline, Alberta`s light and medium oil production is showing convincing signs of reversal. It started happening in the US about a year ago, and now it`s starting to happen here in Canada. If the contagion spreads, oil market fundamentals will change globally.







Locally, we`ve seen the story before. Imagine a century ago. The excitement couldn`t be reigned in when a horse drawn, flat-bed buggy pulled up to a southern Alberta well site in a cloud of dust. Rig hands marveled at the arrival of a load of steel casing, long pipes specially made to line the well bore like a protective sleeve.







Pioneers in their own right, the workers were anxious to try a new technique that allowed the riches of the earth to be produced without fear of the long vertical hole caving in. The well was deep by their standards and was drilled using new mud-based rotary drilling techniques introduced only a few years prior, in 1901.







Read the full article here.

 

[Ally]

Calgary housing prices down from a year ago





CALGARY ` A regular survey of repeat home sales in major markets across the country shows Calgary was the only one to experience a year-over-year price decline.




The Teranet-National Bank House Price Index, released Wednesday, indicated prices in Calgary fell by 3.3 per cent in March compared with March 2010. It was the sixth consecutive month of 12-month deflation in Calgary.




Prices were also down 0.1 per cent from February.




Read the full article here.

 

[Ally]

Construction begins on Calgary's fourth building at Stoney Industrial Centre





CALGARY ` Construction has begun on another massive building in the Stoney Industrial Centre ` the fourth structure in the project by WAM Development Group in partnership with Alberta Investment Management Corporation.




Stoney Warehouse 4 will be a 436,000-square-foot building and is projected to be completed by the fourth quarter of this year. It will be the fourth of an eventual six buildings on the northwest corner of Deerfoot Trail and Country Hills Boulevard.




The new building is also registered to be a LEED (Leadership in Energy and Environmental Design) certified candidate. Once complete, and upon anticipated certification, Stoney Warehouse 4 will be the largest LEED certified building in Canada.






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[Ally]

Calgary multi-family home market coming out of the recession





CALGARY ` During his career in the homebuilding industry, Tim Logel has seen three recessions in close to 30 years.




And Wednesday he said signs that Calgary is coming out of the recession are present today like they were in past recessions.




`Those signs are very consistent and you can put your finger on them. No. 1 there are buyers out there,` said Logel, president and partner of Cardel Lifestyles, which held a grand opening of four new condo models and launch of Panorama West in Genstar`s Panorama Hills.




Read the full article here.

 

[Ally]

Alberta experiences second highest growth rate in average weekly earnings





CALGARY ` Alberta had the second highest annual growth rate in the country for average weekly earnings in March, according to Statistics Canada.




The federal agency reported Thursday that average weekly earnings of non-farm payroll employees in the province rose to $1,036.11 during the month, an increase of 0.5 per cent from February and of 5.8 per cent from March 2010.




Only Newfoundland and Labrador`s annual growth rate of 6.1 per cent topped Alberta.




And Alberta had the second highest average weekly earnings in the country, behind only the Northwest Territories at $1,218.14.




Read the full article here.

 

[Ally]

Calgary condos selling faster in 2011 than in 2010





Although the economy's recovery remains a work in progress, 2010 was a busy year for condominium sales in Calgary.




According to Calgary Real Estate Board (CREB) statistics, nearly 5,200 MLS condo sales took place last year, with the average sale price about $263,065.




But CREB president Sano Stante says the number he's watching as 2011 progresses is the days on market, or DOM.




Read the full article here.

 

[Ally]

Armed with white Stetsons, Calgary invades China




There will be an estimated 150 million outbound Chinese tourists by 2015. Alberta is hoping a few hundred thousand of them will be inspired to take a look at some of Canada`s natural wonders.




Armed with a new Mandarin-language tourism website and dozens of white Stetsons to give away to business leaders, Calgary`s largest-ever trade delegation has just landed in Beijing for a week of selling its city to a Chinese audience.



Read the full artilce here.

 

[Ally]

Gearing up for a new labour crunch




Canada`s oil patch is scrambling to bring back foreign workers, desperate to avoid a repeat of the labour crunch that clobbered the industry three years ago.




With oil prices hovering at a lofty $100 (U.S.) a barrel, new discoveries scarce and Asian energy demand on the rise, Canadian companies are taking every measure to ensure oil sands projects aren`t slowed down by labour shortages. The federal government has resumed granting approval for companies to fly in trades workers from other countries. And labour recruiters are drafting corporate international hiring plans and reopening skills training centres to prepare workers in places like Mexico to come to Canada.





Read the full article here.

 

[Ally]

Attraction and retention in Canada's oil patch





In 2009, there were almost 58,000 oil patch jobs in Alberta. Analysts say if oil prices continue to rise, there would be about 102,000 jobs that need to be filled by 2020. According to a report by the Petroleum Human Resources Council of Canada, Alberta may need nearly double the number of workers in its oil patch over the next decade. With a labour crunch looming, oil and gas companies are offering unique incentives to attract and retain employees.





Location, location, location

One barrier to recruitment is the geographic locations of the oil sands operations. Often workers are hesitant to relocate to these remote sites in northern Alberta. At Syncrude, one of the largest producers of crude oil from Canada`s oil sands, the HR department recognizes this hesitancy and offers housing support as incentives for workers relocating to northern Albertan city of Fort McMurray, where housing costs can be high because of the booming oil business.





Read the full article here.

 

[Ally]

Oil demand poised for big fall




North America`s thirst for oil has reached a turning point, as high gasoline prices and slow economic growth finally force consumers to cut back on their use of fuel.




The International Energy Agency chopped its forecast for oil consumption in the region on Thursday. The Paris-based group now says the United States, Canada and Mexico will use 23.7 million barrels a day this year, 190,000 fewer than last year ` the first decline since the recession.





Read the full article here.

 

[Ally]

Developers mobilize Calgary industrial real estate projects




CALGARY ` A lack of new supply in Calgary`s industrial real estate market has prompted developers to mobilize projects previously shelved and commence proposed construction projects, says CB Richard Ellis Ltd.




In its first quarter report on the market, CBRE says overall vacancy has decreased for the fifth consecutive quarter to 3.6 per cent, a drop of 20 basis points from year-end 2010.




`With limited new supply, new market entrants and current tenants wanting to expand continue to look to existing inventory to satisfy their space requirements,` says the report. `This lack of new supply has caused further tightening of market conditions and has resulted in a slight increase in lease rates for certain industrial market segments.`





Read the full article here.

 

[Ally]

Calgary airport authority finally says yes to tunnel




The airport tunnel, which even supporters had repeatedly eulogized and had spent years on the city's unfunded or "nice-to-have" lists, finally got the airport authority's blessing after the new mayor's staunch advocacy and some pricey city concessions.




The airport authority approved on Friday the city's proposal to build new interchanges for terminal access in exchange for rights to start digging in mid-June the tunnel that will intersect a new runway and ultimately link Airport Trail between Deerfoot Trail and the northeast ring road.




That offer, which city council voted for last week, pushes the project's cost well over its original tab of $295 million, and will mean the roadway will stop at the little-used, rural-style 36th Street N.E. until more money is available.





Read the full article here.

 

[Ally]

Alberta sales tax could help fill void of diverted royalty revenues




CALGARY - A new provincial sales tax could help fill the void in government coffers if oil and gas revenues are diverted under a plan for Alberta`s economic future, a Calgary audience heard Friday.




Business professor Leonard Waverman put forth the provocative method of generating new provincial funding at a morning discussion sponsored by the Canada West Foundation and Calgary Economic Development on a report authored by Premier Ed Stelmach`s blue-ribbon panel.




The Shaping Alberta`s Future document by the Premier`s Council for Economic Strategy, released earlier this month, suggests non-renewable resource revenues should be set aside in the name of future prosperity.





Read the full article here.

 

[Ally]

Imperial pushing Kearl cost past $10 billion




Imperial Oil on Friday confirmed that the Kearl oilsands mine will cost $10.9 billion, about 40 per cent higher than original estimates of about $8 billion.




The company made the disclosure at an investor day open house in Toronto on Thursday, but said the higher price tag is due to modifications to the original design as opposed to widespread overruns.




In October of last year, the company announced that it was reducing the number of phases for the mine to two from three and eliminating a third production train.




In addition to higher prices for labour and construction materials like steel, company officials said changes to the original project design also contributed to the increase.





Read the full article here.