Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

October 2010 Alberta Fundamentals

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
`Finally, we will move forward`: Mandel

EDMONTON — After taking a strong early lead over his main rival, a tearful Mayor Stephen Mandel declared his re-election to a third term Monday "a victory for Edmonton and Edmonton`s future."

Mandel, whose win was never in doubt on a night that saw several incumbent councillors facing tougher-than-expected races, told a cheering crowd of more than 200 people that Edmonton voted to be its own city after a tough, emotional election campaign.

"I think that`s vitally important, to seize control of our own agenda and put (our) collective interest above any single interest," he said, in an apparent reference to the fight over the future of the City Centre Airport. "Finally, we will move forward."

As of 11:15 p.m. Monday, Mandel had 105,996 votes and his closest rival David Dorward had 57,435 in 320 out of 324 stations reporting. This is the first time Mandel cracked 100,000 votes.

Mandel and Dorward had engaged in an election dogfight over the closure of the airport, with Mandel determined to stay the course on its closure and Dorward adamantly opposed.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
`Balanced` Edmonton housing prices burst bubble fears

EDMONTON — Edmonton`s housing market, while no longer red-hot, remains on steady ground for prices, according to a report by Royal LePage.

At the end of July, August and September, detached bungalows in the Edmonton area rose an average of 0.9 per cent year-over-year to $311,429 while standard two-storey houses increased 3.4 per cent to $338,571, said the real estate services firm Tuesday.

Standard condominiums declined 3.6 per cent to $204,167 over the same time last year.

Royal LePage said year-over-year unit sales declined and inventory levels increased, but didn`t provide details.

"For most housing types, prices have increased slightly from where they were a year ago," said Ken Shearer, a broker with Royal LePage Noralta Real Estate, in a release.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Housing boom blamed on subsidies

The federal finance committee got an earful Tuesday from one group not too thrilled with the housing boom — Canadian landlords.

John Dickie, president of the Canadian Federation of Apartment Associations, said at least part of the housing boom over the past decade can be attributed to the government favouring housing over rental accommodation by providing a much larger subsidy.

"There are a number of rules in the current tax system that amount to massive favoritism towards homeowners as opposed to renters," said Mr. Dickie Tuesday, adding it`s true for all three levels of government.

In Ontario, the group estimates, municipal, provincial and federal governments provide a subsidy of $2,629 per owner-occupied house, compared to $395 per renter.

"There is a perception among politicians that homeowners vote more frequently than tenants," said Mr. Dickie. "There is perception in society that homeownership is good and should be encouraged."

Homeownership rates in Canada have climbed steadily over the past decade and are now closing in on about 70% of households, something Mr. Dickie said "pushes it further than it should."

Read the full article here
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Economies worldwide downshift to new normal

The good news: Alberta`s economy is expected to lead the nation in growth in 2011, topping Saskatchewan, Newfoundland and British Columbia.

At 3.5 per cent, Alberta`s economic uptick should handily exceed this year`s GDP growth forecast of three per cent, sparking employment gains and rising in-migration from other provinces.

The bad news: It won`t be a stellar year for the North American economy overall, as public stimulus programs end and governments begin the painful task of slashing their bloated deficits.

At least, that`s what Scotiabank chief economist Warren Jestin sees when he gazes into his crystal ball, as he did during a whirlwind tour of Alberta this week.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
`Balanced` Edmonton housing prices burst bubble fears

EDMONTON — Edmonton`s housing market, while no longer red-hot, remains on steady ground for prices, according to a report by Royal LePage.

At the end of July, August and September, detached bungalows in the Edmonton area rose an average of 0.9 per cent year-over-year to $311,429 while standard two-storey houses increased 3.4 per cent to $338,571, said the real estate services firm Tuesday.

Standard condominiums declined 3.6 per cent to $204,167 over the same time last year.

Royal LePage said year-over-year unit sales declined and inventory levels increased, but didn`t provide details.

"For most housing types, prices have increased slightly from where they were a year ago," said Ken Shearer, a broker with Royal LePage Noralta Real Estate, in a release.

"However, we are currently witnessing a levelling off of prices after the quick recovery that began in 2009 and continued through until the spring of this year.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
`Don`t obsess` about the short-term: Carney

OTTAWA -- Mark Carney, the Bank of Canada governor, said Wednesday Canadians must look beyond the short-term economic softening and focus on longer-term concerns such as boosting productivity growth and capping growth in household indebtedness.

The governor`s comments emerged after the release of the central bank`s latest economic outlook, which indicated economic growth in Canada lagged the United States in the third quarter. The outlook said it anticipated annualized growth of just 1.6% for the three-month period ended Sept. 30 -- a big revision from its previously anticipated 2.8% expansion for the quarter. Meanwhile, it said it estimated the U.S. economy expanded 2.3% in the comparable time period.

The anticipated 1.6% annualized gain is the result of a string of weaker-than-expected economic indicators, from retail sales to job losses. And due to big downward revisions in its growth outlook, the central bank decided on Tuesday to leave its policy rate unchanged at 1%.

"Don`t obsess about the third quarter," Mr. Carney told reporters at a media conference in Ottawa, when asked about how Canadian growth lagged U.S. GDP expansion. "What we need to focus on in Canada is on the medium term -- getting productivity up, getting investment in place, making sure household balance sheets are in a sustainable position. And from the bank`s perspective, ensuring sure inflation remains low, stable and predictable."

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Calgary inflation lower than country

Consumer prices in Calgary and in Alberta rose at a much lower rate in September than the rest of the country.

Statistics Canada reported today that consumer prices were up by only 0.8 per cent in the Calgary census metropolitan area in the 12 months to September, following a 0.5 per cent increase in August.

In the province, prices were up 0.9 per cent. They were up 0.6 per cent on a year-over-year basis in August.

And nationally, the federal agency said consumer prices rose 1.9 per cent in the 12 months to September, following a 1.7 per cent increase in August.

Across Canada, energy prices advanced 5.6 per cent during the 12 months to September, following a 5.0 per cent increase in August. Excluding energy, the Consumer Price Index was up 1.5 per cent in September.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Alberta retail sales rise

Retail sales in Alberta rose at a faster pace than the Canadian average in August - the traditional back-to-school shopping period.

Statistics Canada reported today that consumers spent $4.952 billion in the province in the retail sector in August, a 1.5 per cent increase from July and a 5.5 per cent hike from a year ago.

In contrast, retail sales across the country rose 0.5 per cent on a monthly basis and 3.5 per cent on an annual basis to just under $36.1 billion in August.

At the provincial level, Manitoba had the highest year-over-year increase at 6.6 per cent with Alberta the second highest.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Calgary housing price increases forecast by Conference Board

CALGARY - Short term year-over-year price growth expectations for the Calgary housing market are in the five to seven per cent range, according to the Conference Board of Canada.

In releasing its Metro Sale Index today, the board said Edmonton, Saskatoon, Gatineau, Montreal, Quebec City, Sherbrooke, Trois-Rivieres and Saguenay were all in the seven per cent and more range for short-term year-over-year price growth expectations.

Joining Calgary in the five to seven per cent range were Victoria, Vancouver, Fraser Valley, Regina, Winnipeg, Halifax and Newfoundland.

However, according to the website of realtor Mike Fotiou, of First Place Realty, so far this month up until Thursday, there have been 551 single-family MLS sales in Calgary for an average sale price of $436,614. That compares to 958 sales for the entire month of September with an average price of $460,278.

In the condo market, there have been only 203 sales so far this month for an average of $289,787 while in September there were 366 sales for the whole month with an average of $284,028.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Natural gas slump a `game changer` for petrochemicals

Low natural gas prices across North America, due largely to the flood of new production from shale gas, may be a big help to Alberta`s petrochemical industry.

"This is a game changer, and it will be a boost to local firms like Agrium, Sherrit and the oilsands producers which all use natural gas," said Neil Shelly, executive director of Alberta`s Industrial Heartland, a group that represents local municipalities, including Edmonton, Fort Saskatchewan and Strathcona County.

Using industry projections of low prices lasting for years, Shelly says his group is getting out the message that while things are looking bleak for the gas producers, there is opportunity for gas users.

Current prices of about $3.50 per gigajoule are so low that new drilling is uneconomic, and "you can add to that the pipeline transmission costs of about $1.50 per gigajoule Alberta producers are facing when they sell into the U.S. market," he said.

Natural gas producers in the U.S. are generally closer to markets and face much lower pipeline costs.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Precision shares jump after 42% higher earnings report

CALGARY - Shares in Precision Drilling Corp. jumped more than two per cent Thursday as it reported 42 per cent higher third-quarter revenue and easily beat analyst earnings estimates.

The Calgary-based company, Canada`s largest driller, climbed to $7.70 per share, up 18 cents, but short of its 12-month high of $8.09 set last April.

President and chief executive Kevin Neveu said the demand for drilling rigs to find oil and natural gas liquids in both Canada and the United States is expected to strengthen, pulling day rates and utilization higher despite poor prospects for natural gas prices.

"The strong customer demand for high performance rigs targeting oil has led the rig count higher and continues to provide an encouraging outlook for Precision," said Neveu.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Alberta government splashes new pro-oilsands ad in London

CALGARY - First we take Manhattan, then we take . . . London?

Indeed, Piccadilly Square in London, England is the next major media centre the Alberta government is targeting in its oilsands and environmental marketing campaign.

On the heels of an Alberta government ad run in Times Square, the Stelmach government is spending $30,000 to run pro-oilsands/environment electronic billboard ads in Piccadilly Square in London.

The two, 15-second spots began running Oct. 11 and will go until Nov. 10, appearing in rotation 17 times per hour.

One ad, running in four separate strips (with a beautiful mountain backdrop), says: "The world`s second largest proven resource of oil. Yes; Responsible. Yes; Alberta, Canada has strict regulations to protect land, water, air, wildlife and people; Tell it like it is. Learn more at oilsands.alberta.ca."

The other ad (with a blue sky and fluffy clouds as a backdrop) reads: "Meeting consumer demand for oil. Yes; Demanding innovation. Yes. Alberta, Canada has committed $2 billion towards carbon capture and storage. A clean energy technology; Tell it like it is. Learn more at oilsands.alberta.ca."

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Oil industry could shake off downward trend

The whole shale gas story has North America`s natural gas producers feeling like they`ve been hit in the head by a fastball of change. Those in the industry who are partial to finding oil may not believe that the same fastball can hit them too. But it may be time to set aside any preconceived notions. Leading indicators on the oil side of the business bring to mind the pithy wisdom of baseball legend Yogi Berra, "It`s déjà vu all over again."

Like natural gas, oil production in North America may soon reverse a longstanding downtrend and begin growing again.

Less than a decade ago, rising natural gas prices combined with innovative drilling and completion technologies provided the catalyst to start delivering large volumes of gas from resources that were previously considered unviable. Aggressive land purchases, ongoing innovation, economies of scale and access to billions in foreign capital turned a once-sleepy trend into today`s new reality of omnipresent gas supply and lower prices – something unthinkable less than five years ago. Since then we`ve witnessed the transformation of the entire continent`s natural gas supply and the story is far from over. Are the same series of events showing themselves in the oil business?

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Calgary house prices stabilize

CALGARY - Calgary house prices stabilized in the third quarter and now stand close to year-ago levels, according to the Royal LePage House Price Survey released today.

Year-over-year prices for detached bungalows rose 2.7 per cent in the third quarter to $412,744. Meanwhile, year-over-year prices for standard condominiums and standard two-storey homes declined slightly, by 1.1 per cent to $246,656 and 1.0 per cent to $410,489 respectively.

"After peaking in early 2010, house prices in Calgary softened in the third quarter," said Ted Zaharko, broker and owner, Royal LePage Foothills. "In spring 2009, we began to experience a snap recovery as buyers took advantage of the opportunities that the 2008 downturn provided.

"That rapid recovery drove prices up and continued until the spring of this year. Prices have since fallen from their early-year peak as stability and balance have returned to the market."

Zaharko said the Calgary housing market is a unique one.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Stelmach, Nenshi talk Calgary airport tunnel

CALGARY - After meeting with the premier today, Calgary mayor-elect Naheed Nenshi said the province hasn`t closed the door on working with the city on building an airport tunnel.

"He (Stelmach) suggested that it sounds like a project that makes a lot of sense," Nenshi told reporters in a brief availability.

"He certainly didn`t make any promises, but he certainly said that the province would look at ways that they could partner with us on that particular project."

However, Premier Ed Stelmach made it clear there won`t be additional provincial dollars earmarked for the costly project. He noted Calgary has received about $419 million this year from the Alberta government`s municipal sustainability fund.

"It is a very tough budget year for the province," Stelmach told reporters after he was asked about the airport tunnel project.

"There are no additional dollars."

The first official meeting between the premier and Calgary`s mayor-elect ran more than an hour, roughly 30 minutes longer than expected. Alberta Justice Minister Alison Redford, Calgary`s provincial political minister, also attended the meeting.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Let the good times roll

A smile spreads across Terence D`Lima`s face. After two difficult years struggling in a grim labour market, the young engineer`s mood, like the Alberta economy, has taken a turn for the better. It wasn`t that long ago that the recently minted University of Alberta graduate was laid off from his engineering position in oilfield construction services in early 2009. He spent eight months looking for work, and felt the effects of the recession first-hand.

But D`Lima sent out more than 100 resumés and spent his downtime studying for his chartered financial analyst exams. Finally, after a difficult search he found an engineering position. D`Lima is employed in his field and enthusiastic about his future. "I`m definitely optimistic," he says.

Alberta Venture`s 2010 Business Conditions Survey found that D`Lima`s optimism is shared across the province. Most importantly, perhaps, it also reveals that more high-ranking executives are planning to hire in the next 12 months than at the height of the boom in 2005. The economic recovery south of the border might still be a jobless one, but judging from this year`s survey data it doesn`t look like Alberta will suffer the same fate. In the first Business Conditions Survey conducted in 2005 by Alberta Venture, two- thirds of respondents indicated that they didn`t expect to do any hiring in the year to come. Today, the figures are more encouraging.

In fact, they`re almost the inverse of 2005`s results. This year, more than 82 per cent of the executives surveyed responded that they will hire in the next year. The survey also showed that 87 per cent of respondents expect their profits to rise in the next year, and still more expect their industries as a whole to grow. "Cautious optimism" is the phrase on the lips of the executives Alberta Venture spoke with in follow up to these survey responses.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Dinning calls Alberta business `magnet`

Alberta`s economy is a significant factor in Canada`s current and future economic prosperity.

But Jim Dinning, chair of the Canada West Foundation and chair of Western Financial Group, said Wednesday the province cannot afford to become complacent.

"One concern that we hear more and more these days is around our brand here in Alberta. It is under attack. We`re increasingly tarnished and dismissed as duck-killing, knuckle-dragging Neanderthals," said Dinning at the Calgary Real Estate Forum.

If the manufacturing base in Ontario continues to feel the pinch from a high Canadian dollar and growing global competition, then the contribution of the West, specifically Alberta, will become even more important as Ontario`s historical role as the fiscal linchpin in Confederation becomes more and more difficult to sustain, said Dinning.

"Frankly, I`m very optimistic about our future," he said. "The West`s strong performance has been essential to Canada`s economic growth since the turn of the millennium."

He said Alberta`s economy has been characterized as a "one-trick pony" with its heavy reliance on the energy sector.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Oil, gas drilling up 60 per cent from last year

EDMONTON — Improvements this year in oil and gas drilling activity should carry over into 2011, the Canadian Association of Oilwell Drilling Contractors (CAODC) said Tuesday.

The first three-quarters of 2010 saw a 60-per-cent improvement over 2009, but were still 14 per cent below the same months of 2008, and significantly under the 2006 mark.

There were 83,359 operating days for the period this year, up from 51,993 in 2009.

Rig utilization in the first nine months of 2010 averaged 38 per cent, compared with 23 per cent in 2009 and 40 per cent in 2008.

CAODC said its forecast for the fourth quarter of this year hasn`t changed from the update issued on May 28. The association expects an average of 400 rigs to run in October through December for a utilization rate of 50 per cent.

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
House price growth slowest in Calgary

CALGARY - House price growth in Calgary on a year-over-year basis was behind the rest of the country, according to a report released today.

The Teranet-National Bank House Price Index, which regularly surveys six Canadian metropolitan areas, said that in August Calgary saw house price growth of only 5.0 per cent compared with a year ago. On a monthly basis, prices dropped by 0.5 per cent from July.

The index is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index.

Toronto led the country with year-over-year growth of 12.5 per cent followed by Vancouver (11.8 per cent), Ottawa (10.7 per cent), Montreal (7.7 per cent) and Halifax (6.8 per cent).

Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Province introduces split title legislation

CALGARY - Freehold landowners are claiming victory after the Alberta government on Wednesday introduced legislation that gives them ownership of natural gas in coal seams, more commonly known as coal bed methane (CBM).

Bill 26, the Mines and Minerals (Coal Bed Methane) Amendment Act, proposes that CBM is and always has been, natural gas for both Crown and freehold minerals. Under the proposed amendment coal bed methane would be owned by the holder of the natural gas rights and not the coal owner.

Observers said the amendment puts to rest years of legal disputes between landowners and the owners of coal rights granted to the Canadian Pacific Railroad in the 19th Century that could have wound up in the Supreme Court.

"This amendment provides certainty in coal bed methane split title situations where different parties own the rights to coal and natural gas under the same parcel of land," Energy Minister Ron Liepert said in a statement. "This will clear the way for coal bed methane development and continue the efficient and responsible development of Alberta`s abundant mineral resources."

Read the full article here.
 
Top Bottom