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Calgary & Alberta Economy

darwink said:
As for this: The USA is going to hit an all time high in oil production next year, surpassing prepandemic levels. https://www.bloomberg.com/news/arti...th-to-slow-in-us-next-year-as-inflation-bites

Natural gas production in the USA is also at a record level. https://www.eia.gov/dnav/ng/hist/n9050us2A.htm

We shouldn't blame domestic policies for the result of a war, and the disruption caused by a major drought on the great plains.
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I understand that US production is fine - I was referring mainly to the recent debacle with Saudi, but I think any impartial observer would agree that the current administration's energy policy has been a failure - starting with the Keystone XL decision on day one and continuing with the politically motivated liquidation of the SPR (coincidently timed to end at this year's midterm elections). Most energy analysts and professionals within the industry would agree that Biden's team has made crucial missteps on the energy file.

The failed oil deal with Saudi is wild - this is an interesting read (is the NYT an acceptable source for you? 🤣)

The war in Ukraine has actually had a limited impact on oil pricing. The early 2022 spike in WTI to $120 was a result of the war but since then Russian crude has been gobbled up by developing nations or is reaching the market through intermediary means. The issue is that there has been structural underinvestment in exploration and production since 2014, both inside and outside of OPEC. Production has not maintained pace with demand growth due to market inefficiency. This is the reason we are going to see elevated energy prices for the foreseeable future.

darwink said:
I think you might need a little less Fox News in your news diet.
Click to expand...
Why the need for the petty comment? This is the problem with politics today. It's much easier to attempt to discredit an opposing viewpoint than actually engage in meaningful discussion. Isn't the point of a discussion forum to engage differing perspectives and learn?
 
Surrealplaces said:

JWN Energy

www.jwnenergy.com www.jwnenergy.com
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Pretty much echo's other assessments I have read. Past booms resulted from investment in new production and spinoffs from that. More and higher paying jobs were created and more spending was done by all. Now, very little investment is directed to expansion. Investment capital from outside the country has dried up. The federal government is doing it's best to discourage more fossil fuel production and we don't have the pipeline capacity to support a major increase anyway. Therefore ... no boom and should be no bust! ;)
 
Maybe this is the best result for the times we're in. Producers are earning enough money to keep jobs going, and avoid layoffs, as well as add some extra revenue to the province, while at the same time not booming, so as to allow non O&G companies to flourish.
 
artvandelay said:
I understand that US production is fine - I was referring mainly to the recent debacle with Saudi, but I think any impartial observer would agree that the current administration's energy policy has been a failure - starting with the Keystone XL decision on day one and continuing with the politically motivated liquidation of the SPR (coincidently timed to end at this year's midterm elections). Most energy analysts and professionals within the industry would agree that Biden's team has made crucial missteps on the energy file.

The failed oil deal with Saudi is wild - this is an interesting read (is the NYT an acceptable source for you? 🤣)

The war in Ukraine has actually had a limited impact on oil pricing. The early 2022 spike in WTI to $120 was a result of the war but since then Russian crude has been gobbled up by developing nations or is reaching the market through intermediary means. The issue is that there has been structural underinvestment in exploration and production since 2014, both inside and outside of OPEC. Production has not maintained pace with demand growth due to market inefficiency. This is the reason we are going to see elevated energy prices for the foreseeable future.


Why the need for the petty comment? This is the problem with politics today. It's much easier to attempt to discredit an opposing viewpoint than actually engage in meaningful discussion. Isn't the point of a discussion forum to engage differing perspectives and learn?
Click to expand...
The key being "attempt". Raising Fox News or say an anti-vaxxer or Tucker Carlson is a disingenuous but highly effective communications strategy to ellicit emotions and avoid actual debate. The entire 2021 federal Liberal campaign strategy successfully used this approach.
 
We will have to wait to see if 2022 shows the same as most past years: that Canada/Alberta isn’t under performing on the investment side at all.

1667882897654.png
 
darwink said:
They asked for the tax credit. And got it. Now say they’ll do carbon capture, but none are even advanced to even start feed studies to my knowledge, and the companies are asking the government for continual operating subsidies.

The government is asking the companies to live up to their commitments—not just run ads about the commitments on the radio.
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Since when do companies live up to the commitments of receiving government money (ex. automakers, aerospace)?
 
Re: CCUS and companies not being very advanced, I don’t think it’s entirely fair to place blame on companies. The process to get carbon sequestration tenures has been slow to develop.

First companies had to submit Expressions of Interest (EOI), followed by Full Project Proposals (FPP). The GoA only just issued “Carbon Sequestration Agreements” to 6 proponents to even allow them to begin evaluating and demonstrating that they can develop sequestration hubs in their AOIs. Only after demonstrating feasibility will the GoA grant sequestration rights.

In short, how can companies advance CCUS if they only just received approvals to conduct feasibility work (e.g., drill exploration wells).

The GoA prioritized resources to evaluate proposals in the Industrial Heartland, and recently selected proposals for other areas of the province.

The slow process to date makes sense, because there’s no point in building redundant infrastructure, and the GoA doesn’t want to waste pore space by granting it to companies that won’t use it.
 
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Chowda7 said:
Calgary Herald: Symend secures $56 million in capital growth funding.
calgaryherald.com

Symend secures $56 million in capital growth funding

Symend announced Thursday it has raised about C$56 million to accelerate its growth and global market expansion.
calgaryherald.com calgaryherald.com
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.... as it layoff staff
betakit.com

Canadian tech layoffs continue as tough year comes to a close

At least 10 Canadian tech firms have recently cut staff, including Properly, TealBook, D2L, Symend, League, Apollo, Faire, Swift Medical, VanHack, and Koho.
betakit.com betakit.com
 
Chowda7 said:
Calgary Herald: Symend secures $56 million in capital growth funding.
calgaryherald.com

Symend secures $56 million in capital growth funding

Symend announced Thursday it has raised about C$56 million to accelerate its growth and global market expansion.
calgaryherald.com calgaryherald.com
Click to expand...
Interesting tidbit from the article.

While investing has not stopped in other jurisdictions, Toronto, Montreal and Vancouver have all fallen off of their record funding levels of 2021. These two announcements will push Calgary beyond its record mark of $490 million last year. Calgary was at an estimated $433 million through three quarters, according to preliminary data from CVCA, prior to these announcements.
 
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