November 2012 Alberta Economic Fundamentals

[Ally]

Shell project could burden Fort McMurray's population






The municipality has told Shell and the federal-provincial Joint Review Panel that it does not oppose the company`s proposed expansion, but the project brings concerns.




During a Tuesday morning hearing reviewing the project, municipal CAO Glen Laubenstein told the panel that the magnitude of growth from the oilsands has overwhelmed the province and the region.




He added that although Alberta`s sudden rise as a major energy producer has brought Canada billions of dollars in wealth, the sudden wave of migrant workers has become a burden for local infrastructure, and the Shell project will only add to the problems.




`We`ve grown so fast that the province has been incapable of keeping up,` he told the panel. `We`re not opposed to the project, but we are concerned about the impacts workers and the camps would have on various socioeconomic issues in the community.`





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[Ally]

Senators turn up pressure on Obama to approve Keystone Pipeline




WASHINGTON ` A bipartisan group of senators on Friday urged President Barack Obama to quickly issue a permit for the northern leg of the Keystone XL pipeline, a project environmental groups have vowed to keep fighting.




The senators ` nine Democrats and nine Republicans ` asked Obama to approve the pipeline because it will create jobs and reduce the need for oil from the Middle East. They were led by Max Baucus, a Montana Democrat and powerful chair of the Senate Finance Committee, and John Hoeven, a North Dakota Republican. Both senators represent the booming Bakken oil region.





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[Ally]

Alberta oil welcome in East, Regan says






FORT MCMURRAY, Alta. ` A Liberal MP from Nova Scotia has paid a visit to the oilsands, saying that Alberta may be having struggles in accessing foreign markets but the province`s crude is always welcome in the East.




He says environmental concerns appear to be stalling approval of the Keystone XL pipeline to Texas and the Northern Gateway pipeline which would ship through B.C. for export to Asian countries.





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[Ally]

Alberta's economy the best in Canada in 2011




CALGARY ` Alberta`s economy grew at the fastest rate among the provinces in 2011, expanding 5.1 per cent compared with an increase of 4.0 per cent in 2010, according to Statistics Canada.




The federal agency reported Monday that exports in the province advanced 9.2 per cent, more than four times their pace in 2010. Consumer spending rose 3.4 per cent, driven by household outlays on durable goods, notably new trucks and used motor vehicles, and services. Business investment was up 7.6 per cent, despite a 5.2 per cent decline in investment in residential housing.





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[Ally]

Upgrader good for Park economy




Strathcona County is boasting a boom following the announcement of a go-ahead for the Northwest Upgrader north of Sherwood Park.




The Sturgeon County development falls outside Strathcona`s jurisdiction, but as an Industrial Heartland initiative, the $5.7-billion bitumen refinery is proving profitable for the entire surrounding region.




`This is good news for everyone in the Heartland,` said Strathcona County Mayor Linda Osinchuk, who is also the chairperson of Alberta`s Industrial Heartland Association.




`This investment will drive business for the entire region and presents an exciting opportunity for Alberta and Canada, as well. This is truly about adding value to bitumen through the Bitumen Royalty in Kind (BRIK) policy from the Government of Alberta, and the hard work of all partners involved.`





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[Ally]

Alberta's exports set to jump 12% in 2013






CALGARY, Nov. 15, 2012 /CNW/ ` Export Development Canada`s (EDC) forecast for Alberta`s export growth calls for a substantial gain of 12 per cent in 2013 after recording a 7 per cent gain this year.




`Alberta exports will be firing on all cylinders in 2013,` said Peter Hall, Chief Economist, EDC. `Crude oil, most agricultural commodities and a number of industrial goods will post gains next year, driving Alberta`s total exports to over CAD 100 billion.`




The global recession did not have a significant impact upon Alberta`s export sector, with the number of exporters actually rising from 2,901 in 1999 to 2,972 in 2010. Alberta leads the country in posting the largest increase of exporters during this time period. Most other provinces sustained significant declines in the exporter population during the last decade.





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[Ally]

Peak oil? More like peak Canada




Good morning, students. The results from last week`s history test have been transconducted into your NeuroPads. Now, if you`ll all please disengage your BrainFeeds and start listening, I`ll be talking today about one of the most misunderstood episodes in Canadian history.




This occurred over the first decade and a half of the 21st century. It was Canada`s global moment of arrogant pride ` the Great Hubris, as it`s remembered today ` our country`s moment of squandered opportunity. In those heady years, Canadian leaders and citizens alike became convinced that their country was an energy superpower possessed of powers unique in the world.





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[Ally]

When it comes to price, it doesn't matter where oil comes from




Move over OPEC, North America is about to become a net exporter of oil. At least that`s the supposed good news from the International Energy Agency`s latest outlook. According to the IEA, the drilling boom for shale oil is putting U.S. production on track to pass Saudi Arabia. North of the border, output from Alberta`s oil sands is expected to notch a similarly grand expansion.





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[Ally]

Prices up for repeat home sales in Calgary






CALGARY ` Prices for repeat home sales in Calgary rose from a year ago, according to the Teranet-National Bank House Price Index released on Wednesday.




In October, Calgary prices were up 3.5 per cent compared with October 2011 while prices at the national level rose by 3.4 per cent in the 11 markets surveyed.




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[Ally]

Canada's crude export pipelines clogged



The surge in Canadian oil production must now face a new reality: The biggest mover of crude says the pipes out of the country are full.




In recent years, estimates by analysts and energy consultants predicted that Canada stood to run out of room on export pipelines some time between 2014 and 2018. And it has become clear that the pipes are filling, amid rising oil output from both the oil sands and fast-growing U.S. oil fields.



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[Ally]

Solid MLS sales growth for Calgary housing market




After three weeks, Calgary`s resale housing market is showing strong, solid sales growth in November compared with a year ago.




According to the Calgary Real Estate Board, total MLS sales in the city of 991, between November 1-21, are up 4.65 per cent from the same period last year.




Also, the average sale price has climbed by 3.94 per cent to $431,558.





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[Ally]

Construction industry fuels Alberta job growth




CALGARY ` Alberta`s economy is one of the brightest job markets in the country with over 36,000 new jobs created in the past 12 months.




But not every sector of the province has been churning out jobs equally, says Todd Hirsch, senior economist with ATB Financial.




Since October 2011, the construction sector has been the source of the greatest number of new jobs, accounting for almost half the employment growth in the province (17,900). Close behind that is the oil and gas sector, with 16,600 new jobs. Professional, scientific and technical services have also been a solid source of new jobs, he said in a research note.





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[Ally]

Alberta rate of retail sales growth best in Canada






CALGARY ` Alberta led the country in September in the rate of growth for retail sales, according to Statistics Canada.




The federal agency reported Thursday that sales in the province reached close to $5.9 billion during the month, a 1.7 per cent increase from August and up 8.5 per cent from a year ago.




Alberta led Canada in growth both on a month-over-month and year-over-year basis.




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[Ally]

CP Railway plans move of downtown Calgary HQ to cut costs: Unions




Canadian Pacific Railway is planning to relocate much of its head office from downtown Calgary, union officials and a source close to the company said, under a restructuring plan that its new chief executive will detail to investors in early December.




Chief Executive Hunter Harrison told U.S. union leaders and a Canadian union president that Canada`s second-biggest railroad will move employees out of its glass-towered headquarters as part of an ambitious cost-cutting plan.




Harrison, a hard-driving, 50-year veteran of the rail industry, was appointed CEO in June to turn around the underperforming railway after a bruising proxy battle ousted his predecessor, as well as the previous chairman and several directors. He is the hand-picked choice of CP`s biggest shareholder, William Ackman`s Pershing Square Capital Management, who launched the proxy fight.





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[Ally]

CMHC forecasts more prosperity for Calgary market






Buoyed by net migration, job prosperity and low mortgage rates, MLSÂ sales in Calgary this year are expected to reach their highest level since 2007, before increasing even further in 2013.


As outlined in the Canada Mortgage and Housing Corporation`s (CMHC) annual Calgary Housing Outlook Conference, which took place Nov. 20 at the BMO Centre, Richard Cho, CMHC`s senior market analyst for Calgary, said sales in Calgary should increase by almost 16 per cent in 2012 to 26,000 units, rising by another 500 units in 2013 to 26,500.





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[Ally]

Retiring oilpatch workers leave void





CALGARY - No matter how many talented young people flock to Canada's oil patch, the tremendous wealth of experience being lost from the hordes of Baby Boomers set to retire in the coming years can never be fully replaced.







It is a minor issue within the larger problem of a growing labour crunch, though it is arguably a far greater cause for concern.







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[Ally]

CP head-office move part of company overhaul






Canadian Pacific Railway Ltd. will be moving some of its head office from downtown Calgary to property it owns in the city`s Ogden rail yards, as the company continues widespread cost cutting throughout its operations.




CP management has told union representatives that much of its headquarters` staff, such as network managers, will be moved to office space the company has in suburban Ogden. An historic site in railroad lore, the use of Ogden yards has decreased in recent years.



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[Ally]

Developers in Edmonton eager to get approvals and projects started





Developers in Edmonton want to get building. At a city council meeting this past Monday, representatives from various builders advised that if more housing does not go up soon there will be a shortage. That would cause an increase in housing prices, perhaps too much of one.







The developers are asking council to give approval for more agricultural land to be rezoned for housing. Cameron Communities` Vice President Laurie Scott noted that there is a shortage of available land at the moment. Louise Gibson from Brookfield Residential, agreed, noting that the process of approving new land through the actual building starts takes an average of five years. Add to that the time of the actual construction and you can see how long it takes to add to housing inventory in Edmonton.







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[Ally]

Alison Redford wins more support from counterparts for shipping Alberta oil to Eastern Canada




HALIFAX ` A proposal to ship oil from Alberta to Eastern Canadian markets is drawing support from a growing number of premiers who say it could help stimulate the economy while serving as the foundation for a national energy strategy.




Alberta Premier Alison Redford said she was delighted Friday to see her provincial counterparts back the idea following a discussion she had with Quebec Premier Pauline Marois the night before.





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[Ally]

Oil patch banks scrambling as deposits outpace lending




FARGO ` Lakeside State Bank`s origins trace back to a three-bedroom home with an attached vault in newly organized New Town on the shore of Lake Sakakawea.




The bank was founded with $35,000 in capital when it opened in 1952 to serve a new town created to replace communities flooded by Garrison Dam`s reservoir.





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