Calgary & Alberta Economy

[darwink]

Then... where is it gonna go? The article says no new building is being considered, and we don't have major, vacant office space near U of C.

Smart Building is empty (or rather, mostly subleased to UCalgary but not intended for long term occupation), and Platform will be moving to Platform from Alastair Ross (Innovate Calgary already left there too).

So a couple options on just a preliminary think.

 

[UrbanWarrior]

Ah I didn't realize the Smart Building was available. That sucks.

 

[Chowda7]

Smart Building is empty (or rather, mostly subleased to UCalgary but not intended for long term occupation), and Platform will be moving to Platform from Alastair Ross (Innovate Calgary already left there too).

So a couple options on just a preliminary think.

That makes sense I was just hoping for somewhere like the Husky tower which is right across the street from the U of C Downtown Campus. Plus with the cluster building up downtown this would be a great add on.

 

[Disraeli]

^^^ That's fabulous news!
Could we have a source please?
Edit: Oh I see you addressed that.

Betakit is the best source to follow for tech news in Calgary (including deals) if you're interested.

Nope, nope, nope. MaRS works in downtown Toronto because Ryerson and UToronto are downtown.

It wouldn't surprise me if they went with a space like the District Beltline project. IBM has a presence there and there is plenty of space. I also think they would want to be close to clients as much as possible.

Smart Building is empty

Poor SMART, that was Calgary's shining jewel at one point. I wonder how they have been doing since Foxconn bought them?

 

[darwink]

I also think they would want to be close to clients as much as possible.

IP focused incubators are more about maximizing connection to talent, making it as easy as possible for talent (typically grad students with the occasional professor/mentor pop in) to be cultivated into people who want to work really hard to transition a technology or idea to the outside world and supporting them with wrap around services. Being close to campus maximizes peoples time, helps maintain those weak connections that are so important to recruiting into early stage companies and applying different philsophies to old problems (like having your biology health data people talking with financial data people and finding a way to apply the philosophies of the other to their problems, and facilitates easy access to specialized facilities.

Developing the idea is more important than hustling for customers. The idea is what brings investors. Once a company is into a growth phase being close to customers might be worth moving.

Now is the end goal to turn companies into 50 person enterprises and get them to move downtown? Yes! (if they don't need labs!) But MaRS as a massive building like they built in Toronto as phase 2 and had some trouble filling, yeah, probably not what they are thinking.

 

[Disraeli]

I think MaRS' big pitch is that they are more focused on helping late stage startups commercialize. So not only access to talent and VC, but also access to legal and financial services, industry connections and being able to help market abroad. Makes me think that getting a space closer to where most startups in Calgary are located would make more sense if they end up coming here.

 

[smart_development]

Surveying work and community engagement has begun for the Alberta-Alaska rail line. Still very early days but encouraging to see movement on this project.

Canadian Company Moves Ahead on Proposal to Build Railway Linking Alaska to Alberta

A Canadian-based company is moving ahead on its proposal to build a 1,600-mile, $17 billion railroad line connecting Alaska with Canada and the Lower 48.

fm.kuac.org

Trump approves Alberta-Alaska rail line project; line would move oil, other resources

Trump approves Alberta-Alaska rail line project; line would move oil, other resources | Globalnews.ca

Trump's approval is the first step in the regulatory process on the U.S. side for a line that would transport oil, grain, ore and other goods.

globalnews.ca

 

[darwink]

Let the lawsuits begin. If the courts thoughT Keystone XL didn’t have enough study to justify a presidential permit, then this one is going to be in a much worse position.

 

[gsunnyg]

This is so disturbing. Someone please tell me theres an end to all this bleeding soon? I understand you can't do much to change the situation given the circumstances but I wonder what the reaction would've have been from Ottawa if this was an auto manufacturer in Ontario?
Edit* oops i must've been drunk, thought I pasted the link

Energy giant Suncor plans to shed 2,000 employees

Approximately 2,000 positions at Suncor Energy will be eliminated by the spring of 2022.

calgary.ctvnews.ca

 

[darwink]

This is so disturbing. Someone please tell me theres an end to all this bleeding soon? I understand you can't do much to change the situation given the circumstances but I wonder what the reaction would've have been from Ottawa if this was an auto manufacturer in Ontario?

It fucking sucks being on the bottom of the energy transition being ground down due to corporate decisions which ignored changes in the world market for decades. What can be done? For companies themselves? Nothing. This is what they need to do sadly. eliminate nonproductive business lines, make others as cash flow positive as possible, and put the company on sound enough footings to hopefully build up new business lines.

I think people vastly overestimate what help to the automakers was like, underestimate what conditions were imposed (total reform, board seats, compensation restrictions, imposed business direction), forget the factory closures, and forget the bankruptcy which eliminated the value held by stockholders.

I doubt any of the industry wants the above.

The federal government has offered low interest loans to businesses that are a going concern.

The big aid is still the emergency wage subsidy.

Aid aligned for specific projects I’d bet has been larger than to the auto industry as of the last few years.

I’d throw a question back at you: what more can the federal government do that isn’t just the Calgary equivalent of paying Cape Breton Coal miners to work out of the federal treasury after their market collapsed?

 

[gsunnyg]

It fucking sucks being on the bottom of the energy transition being ground down due to corporate decisions which ignored changes in the world market for decades. What can be done? For companies themselves? Nothing. This is what they need to do sadly. eliminate nonproductive business lines, make others as cash flow positive as possible, and put the company on sound enough footings to hopefully build up new business lines.

I think people vastly overestimate what help to the automakers was like, underestimate what conditions were imposed (total reform, board seats, compensation restrictions, imposed business direction), forget the factory closures, and forget the bankruptcy which eliminated the value held by stockholders.

I doubt any of the industry wants the above.

The federal government has offered low interest loans to businesses that are a going concern.

The big aid is still the emergency wage subsidy.

Aid aligned for specific projects I’d bet has been larger than to the auto industry as of the last few years.

I’d throw a question back at you: what more can the federal government do that isn’t just the Calgary equivalent of paying Cape Breton Coal miners to work out of the federal treasury after their market collapsed?

Create direct jobs in Alberta as is the case in Ottawa/Winnipeg, invest in more infrastructure projects (rebalancing the equalization payments), removing red tape around energy projects, start a program to to reeducate and retrain workers while also paying them some form of EI while their in school (current system isn't good enough)... I can go on a whole list. There may not be a lot the Federal government can do right now for a market sensitive Energy industry other than tax incentives but a lot can be done for Alberta to help them get back up. All Albertans want is the ability to work, is that asking for too much? If you can create an abundance of unnecessary Federal jobs in Ottawa, than why not set up Western head offices in Alberta as well? It'll help simmer down the separatist movement as well. I had the pleasure of taking Alberta Economics 465 when at UofC and it really opens your eyes at how divisive Politicans can be just for their politcal self interest. The liberals have 0 incentive of helping out Alberta because they just need the votes from the GTA and Quebec. Now I'm not a Liberal basher, in fact I voted for Trudeau the first time around but when you continue your fathers legacy of partisan politics like the Hinterland/Heartland model once was, its hard to like the government sitting in Ottawa.

 

[Disraeli]

I'm generally sympathetic to people's indignation over equalization payments. My concern is that the response by the more bellicose proponents of the industry is largely futile. Even worse, it's a distraction and enables the government and in some cases, the industry itself, to not take ownership for Alberta's roll in its financial and economic situation. That's not to say don't try and hold Trudeau's feet to the fire for some support, more that that can't be your primary solution

 

[JonnyCanuck]

Trudeau could state but hasn't, what most informed people already know.

"Oil & gas is Canada's largest export". The global demand continues to be 100 million barrels of oil per day (yes COVID has softened demand temporarily). We will need the revenues from increased oil & gas exports to help pay for the massive debt we have run up, and to assist in the transition to renewable energy sources'. For years to come we will need both fossil fuels and renewable energy. There must be a balance between the two.'

Instead, in the rare instance he even acknowledges Alberta, he concedes that Canada will need the knowledge and expertise that the energy sector has, to help the transition to renewables.... what????.. like that transition is going to happen in anyone's lifetime who is an adult living today?
It would be helpful if he said something like 'Canada supports our energy sector and we are open to domestic and foreign investment opportunities while at the same time working hard to reduce our carbon emissions'.

This should not be about votes. Our own prime minister and federal government are not 'going to bat' for this industry when we desperately need it.

 

[darwink]

What does ‘going to bat’ mean? As far as I can tell it is much like ‘take back Canada’- what does it mean, from whom? The only even plausible guess is that one wants to go back to before duty to consult.

 

[JonnyCanuck]

What does ‘going to bat’ mean? As far as I can tell it is much like ‘take back Canada’- what does it mean, from whom? The only even plausible guess is that one wants to go back to before duty to consult.

OK. If you don't like my euphemism, I will make it clearer for you. 'Going to bat' for the energy industry means

1. Being honest with the environmentalists and green energy proponents .... the transition to renewables in Canada is going to be gradual. There will not be flipping a switch where solar, wind or hydrogen all of a sudden replaces fossil fuels. You ... enviromentalists/Green Party etc need to accept the fact that fossil fuel consumption is going to be around for decades more. At the same time, we ... government, business, consumers ....will work collectively to reduce our carbon emissions
2. The global demand for fossil fuels has not subsided. We have an abundance of energy products that the world wants. Common business sense dictates that we should get as much of this product to market as we can, for as long as we can.
3. For those countries/ organizations/ entities that are demonizing the oil sands and investing millions of dollars to discourage investment or even shut it down .... you are misinformed and ill-guided. We (the federal government) will take whatever steps necessary to counter this.

That is the kind of messaging I would like to see coming from all federal governments regardless of party. It is a shame that it is only coming from the provinces (Alberta/Sask).