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Calgary & Alberta Economy

Disraeli said:
Word is that Solium will stay headquartered in Calgary and that MS will continue to invest in Solium's growth. Hopefully that will be the case as MS is a big name to have backing you and it should be good for Calgary.
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Glad to hear. That's what I was hoping. I know someone who used to work for them, and they seemed like a good company. Also nice that they are a non O&G company headquartered here. That extra diversity is nice. and with rates on office space lower, and skilled workers looking for work, it's a good time to MS to invest in their Calgary ops.
 
Not to be a downer, but Morgan Stanley purchasing Solium probably isn’t good in the long run.
Young fledgling companies with great products who get purchased by a larger company located elsewhere usually go nowhere long term.
Young fledgeling companies who stay independent and are able to keep their mgmt often do fine as long as the people who made them successful stay in control.

If the buyout is negative, it probably won’t be overnight, and there may be positive things that come out of it from the short term.
 
Chinook Arch said:
Not to be a downer, but Morgan Stanley purchasing Solium probably isn’t good in the long run.
Young fledgling companies with great products who get purchased by a larger company located elsewhere usually go nowhere long term.
Young fledgeling companies who stay independent and are able to keep their mgmt often do fine as long as the people who made them successful stay in control.

If the buyout is negative, it probably won’t be overnight, and there may be positive things that come out of it from the short term.
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Some good points for sure. My take on it is that wealth management is a highly competitive market and being owned by and having access to Morgan Stanley's capital is probably in the best interests of Solium if it wants to grow and remain competitive. There is always a risk of MS moving the headquarters from Calgary, but I don't believe they would do it just for the sake of it. Solium has done well to attract high profile up and coming companies such as SpaceX, Spotify and Uber as clients while being located in Calgary. There was a reason these companies chose Solium over the New York banking giants so i'm sure MS doesn't want to mess with it too much. Hopefully this doesn't prove to be wishful thinking on my part.
 
More dark clouds around the oil sands. Devon Energy is going to sell off their Canadian assets and exit Canada to focus on their ' high return U.S. oil business'. That means additional job losses, particularly in their Calgary office, and more vacant office space.They are the latest company in a long list of foreign companies that have sold off their Canadian energy assets.
This lack of confidence in Canada is extremely concerning. When does this start to become top of mind with the federal government. Ever???
 
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It will be top of mind once pretty boy there is gone. I wanted to like the guy, but his continuous support for both sides of this problem is just plain bad leadership.
 
JonnyCanuck said:
More dark clouds around the oil sands. Devon Energy is going to sell off their Canadian assets and exit Canada to focus on their ' high return U.S. oil business'. That means additional job losses, particularly in their Calgary office, and more vacant office space.They are the latest company in a long list of foreign companies that have sold off their Canadian energy assets.
This lack of confidence in Canada is extremely concerning. When does this start to become top of mind with the federal government. Ever???
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This isn't a problem government can solve, the ongoing worldwide oil over supply due to technological change.

One of the reasons the technological change matters most is the large oil companies needed large oil sands leases for security listing purposes, to keep their reserve ratios up. Now that reserves are more than plentiful, there is no reason for players to keep small operations, or parts of operations, or leases.

In addition, the oil sands were predicted to shift to sustainment mode rather than growth mode around this time as early as 2011, according to CERI.
 
If the industry was/should have been preparing for status quo rather than continued growth, then why were there several oil sands expansion projects moving forward up until 2014/15 when they were either cancelled or put on hiatus? I don't believe that either industry or government saw this current predicament coming.
I do know that while world production and therefore supply of oil has increased, demand for oil continues to grow. I also know that Canada is not getting an adequate share of this market given the size of our resources. While the U.S. looks inward, Canada needs to look outward. We need a vision, we need a strategy and we need leadership for the energy industry. Sadly all of those are lacking.
 
Disraeli said:
Some good points for sure. My take on it is that wealth management is a highly competitive market and being owned by and having access to Morgan Stanley's capital is probably in the best interests of Solium if it wants to grow and remain competitive. There is always a risk of MS moving the headquarters from Calgary, but I don't believe they would do it just for the sake of it. Solium has done well to attract high profile up and coming companies such as SpaceX, Spotify and Uber as clients while being located in Calgary. There was a reason these companies chose Solium over the New York banking giants so i'm sure MS doesn't want to mess with it too much. Hopefully this doesn't prove to be wishful thinking on my part.
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Solium has also landed some other big clients, CIBC, and Encana among others. The MS purchase may help out Soulium in that, they have a good product, which many consider the best out there right now, but being a smaller, new company has made it a harder sell. They've landed some large customers like CIBC, and Encana among others, but I know that the smaller size and short history has held them back in some cases. MS behind them, might really boost them globally. Talking to some of the people at Solium, they are generally happy with the purchase.
 
I agree about it being a problem the governments can't solve, but I would like to see Trudeau, come across more solidly on the oil sands and pipelines, if anything just for optics for foreign investors. I know his government purchased TMX, but in the media he still comes across as someone who is undecided or not fully committed.
darwink said:
This isn't a problem government can solve, the ongoing worldwide oil over supply due to technological change.
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JonnyCanuck said:
If the industry was/should have been preparing for status quo rather than continued growth, then why were there several oil sands expansion projects moving forward up until 2014/15 when they were either cancelled or put on hiatus? I don't believe that either industry or government saw this current predicament coming.
I do know that while world production and therefore supply of oil has increased, demand for oil continues to grow. I also know that Canada is not getting an adequate share of this market given the size of our resources. While the U.S. looks inward, Canada needs to look outward. We need a vision, we need a strategy and we need leadership for the energy industry. Sadly all of those are lacking.
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Oh, the switch coming was from growth to maintenance. The shift was much more drastic than predicted - but that does not mean that the large workforces built up to support growth projects wouldn't still be suffering even in a situation where prices stayed buoyant (the Iran deal still would have happened, Venezuela production probably wouldn't have collasped as much, but the above $100 supply crunch would have been over in any case).
 
Chinook Arch said:
I agree about it being a problem the governments can't solve, but I would like to see Trudeau, come across more solidly on the oil sands and pipelines, if anything just for optics for foreign investors. I know his government purchased TMX, but in the media he still comes across as someone who is undecided or not fully committed.
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Well, this is a problem for the federal cabinet as regulator - they cannot be seen to prejudge outcomes. That can get approvals thrown out too. It was one of the factors cited in the Northern Gateway decision - that one of the ways consultation was inadequate was the government before they had received the report had approved it in all but formality.

Unfortunately the public wants the government to be loud, not effective.
 
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I guess you could also put this in the good news column as well, though there are still hurdles.
www.660citynews.com

NEB green-lights Trans Mountain expansion

The National Energy Board has given the green light to pursue the expansion of the Trans Mountain pipeline which was halted last August.
www.660citynews.com www.660citynews.com
 
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