November 2011 Alberta Economic Fundamentals

[Ally]

Price gap between WTI and Brent crude shrinks




The discount on North American crude, which has cost Canadian oil producers billions in revenue in the past year, is shrinking rapidly as futures traders see new prospects for shipping oil to the Gulf Coast.






Enbridge Inc.`s (ENB-T35.76-0.47-1.30%) announcement of a proposed new pipeline from Cushing, Okla., to Texas, is changing the dynamics of the oil market. Prices for West Texas intermediate (WTI), the benchmark price for North American oil, rallied sharply Wednesday on the news, before pulling back Thursday.





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[Ally]

From oil sands to gas pump: Alberta looks to its energy future



As the battle over the Keystone XL pipeline threatens to upset exports from Canada`s oil sands to the United States, an old dream to make Alberta an oil-processing powerhouse is back on the table.





Alberta`s energy industry has long counted on the planned pipeline to carry much of the province`s ever-increasing volume of oil sands output to refineries on the U.S. Gulf Coast.





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[Ally]

Do your homework before purchasing




Good recreation home destinations that offer four-season enjoyment have plenty of appeal for Albertans.




More than a handful take the trip across the Rockies into B.C. to find just the right spot.




But before the emotions kick in - and before signing on the dotted line - there are some points that need to be thought out, says Sotheby's International Realty Canada.




Owning recreation property is a long-term goal for many Canadians, offering a place to enjoy downtime with family and friends, appreciate all that Mother Nature has to offer - and, of course, soak in that much needed R and R.





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[Ally]

Calgary commercial real estate investment balloons





CALGARY ` Investment in Calgary`s commercial real estate market soared in the third quarter of this year.




A report by RealNet Canada Inc. says there were 90 transactions over $1 million totalling just over $1 billion in the quarter compared with 62 transactions for $628 million in the second quarter of this year.




That`s up 62 per cent in overall investment and an increase of 45 per cent in the number of transactions.






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[Ally]

Alberta housing market to experience upswing




Some good news for Alberta`s resale housing market.




A recent report by RBC Economics shows good price growth as well as sales growth in the province next year.




The housing market analysis says sales in Alberta will grow by 7.8 per cent this year to 53,600 units and increase by a further 6.7 per cent in 2012 to 57,200 transactions





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[Ally]

Alberta's rosy budget predictions dashed by global economic crisis




EDMONTON - Alberta's hope for a better bottom line this year has been shattered by global economic turmoil.




The province says in second-quarter financial numbers released Monday that it expects to finish the 2011-12 fiscal year next spring with a $3.1-billion deficit ` close to what it had forecast in the budget.




"It shows our government's challenge to balancing competing priorities," said Treasury Board president and deputy premier Doug Horner. "We're not immune to the turmoil outside our borders."




The revised numbers are a big shift from three months ago, when officials predicted oil leases and strong oil prices meant the deficit would be almost $2 billion less than the $3.4 billion predicted last spring.





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[Ally]

Nebraska lawmakers route to reroute Keystone XL




WASHINGTON ` Nebraska`s governor signed the legislation Tuesday to re-route the controversial Keystone XL oil sands pipeline out of the state`s environmentally fragile Sandhills region, wrapping up a deal TransCanada Corp. hopes will speed U.S. approval of the US$7-billion project.




But with a new environmental review pending ` and a new route still to be drawn ` the Calgary-based company is facing the prospect of continued resistance from landowners who remain suspicious of the pipeline.




`It`s not over,` Nebraska landowner Randy Thompson, one of the state`s most prominent Keystone opponents, said in an interview.





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[Ally]

Alberta tops in North America for 'economic freedom'





Alberta has been named the most "economically free" jurisdiction in North America, beating out its provincial counterparts and all 50 U.S. states as Canada narrows a gap with its southern neighbour, according to a report released Tuesday.







The Fraser Institute's Economic Freedom of North America 2011 report found Canadian provinces, on average, moved up in the ranking as compared to U.S. states when judged on the size of government, taxation and labour-market flexibility.







"The chicken is coming home to roost: Canada is staying on the course of economic freedom, while the United States has accelerated its spending and regulation," said Fred McMahon, a Fraser Institute vice-president and co-author of the report. "It's been a long-term trend that's really beginning to bite now."






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