Thursday, January 08, 2009

This And That

I can't understand the news. It seems like 90% of the time the article starts so negatively and the words chosen in the headlines so full of shock that it's easy to think everything is going down the drain. Take these examples:

Economic woes put target on foreign staff - "We don't forecast for temporary foreign workers because it's based on employer need," said Alberta Employment and Immigration spokeswoman Jennifer Raimundo, noting companies have to prove to the federal government they need to go out-of-country to find suitable workers. "Certainly, with the economic changes that are happening, we're monitoring it closely. But we're still in a labour shortage situation. We're not in a situation where we don't need people."

* So if there weren't a labour shortage the temporary workers would be the first to be let go? Isn't that common sense?

"The picture that is appearing less rosy in Alberta is driving people back home, says Mark Fracchia." - "The appeal of Alberta and its seemingly endless high-paying jobs is dimming. The Edmonton Sun reported on Dec. 28 that Alberta's oilsands are in trouble, and so is the attraction that comes with them, because of tumbling oil and gas prices. With the economy of the western province tied to the energy sector, Albertans are looking to the new year with worry, said Premier Ed Stelmach, who called the news of the province's economic situation as worsening almost daily.

In Alberta, many high-profile oilsands projects have been put on hold. Meanwhile, thousands of jobs and millions of dollars in investment are going to the United States, where refineries are being adapted to process raw Alberta bitumen. Essentially, the resource is still being retrieved from Alberta, but without the capabilities to refine it, the bitumen and a lot of jobs are leaving the province.

But in the Sussex area, 2009 is the year a lot of people have been waiting for to get their hands on a job, even a temporary one, at the $1.7-million Picadilly mine development.

Since the project was announced a year and a half ago, hundreds of people have been working to prepare the site and the initial construction.

But this year marks the real beginning of the ramp-up period. By this summer, about 800 people are expected to be at work on the project."

*The $1.7 million mine stands to hire 800 people. We better all (all 800) pack now and leave the billions of dollars of investments to whoever is left.

Alberta could earn less under new oil royalty program - "Some high-producing wells will pay more, and the vast majority of lower-producing wells will pay less."

The cross-over point at which the new royalty plan will collect more or less cash on conventional oil is about $45 U. S. per barrel, and around $5.50 Cdn. per gigajoule for natural gas, McManus noted. Crude closed Tuesday at $48.58 a barrel and the Alberta spot price for natural gas was $6.27 per gigajoule.

"In situations of low productivity and low commodity pricing, there will be a lot our producers in Alberta that will actually see some benefit in the new royalty framework," said Energy Minister Mel Knight. "It won't be negative for everybody."

Knight, however, argued Alberta isn't in "any danger"of collecting less royalties under the new system as opposed to the old one."

*Alberta could earn less but there is no danger of it happening. Just like I could win the lotto - it's all possible!

There is nothing wrong with this article, be prepared for price increases in Edmonton late 2009.

Resale real estate sales, prices to decrease slightly in '09: Royal LePage -"Royal LePage said that after moving through a period of correction that started in 2007, well before other regions in the country, both Calgary and Edmonton's housing markets are anticipated to return to a growth state later in 2009, characterized by stable average house prices and increased unit sales. Despite slowdowns and delay with some major energy projects, Alberta's economy remains one of the strongest in Canada, said the survey."

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