Monday, March 14, 2016

Alberta Economy - In the news

Balancing Act: Inside the Alberta Governments New Deal on Energy - "Notley didn’t kill the province’s golden goose. Drilling rigs won’t be trundling next door to Saskatchewan or over the southern border to avoid a cash-grab royalty regime. The oil patch’s sigh of relief was heard across the prairies. The government’s election promise was to review if Albertans are getting their fair share of royalties, and it’s been decided that yes, they are.

The review panel said, “Overall, Alberta’s royalties are comparable with other jurisdictions,” and that the existing regime gives the province an “appropriate share of value.” Broadly, it was well-received by the industry. “[The] announcement has been the result of a fair and credible process, one Albertans can trust,” says Tim McMillan, president and CEO of the Canadian Association of Petroleum Producers (CAPP)." Read more

Still afloat in Alberta despite tighter competition - "While Alberta's contracting economy is not yet causing panic among some Edmonton general contractors, its effects are taking hold. Competition is heating up for smaller-scale projects and dollars are being squeezed in bids, according to some industry executives.

"We see margins right now that are so tight, it's hard for us to go any lower than that. We still have to pay the bills and pay our employees. It's tough," said Antoine Gruson, vice-president of sales and marketing for Synergy Projects." Read More

 IEA for the first time sees light at the end of oil’s ‘long, dark tunnel’ - “There are signs that prices might have bottomed out,” the Paris-based adviser to 29 countries said in its monthly market report on Friday. “For prices there may be light at the end of what has been a long, dark tunnel” as market forces are “working their magic and higher-cost producers are cutting output.” Read more

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