Alberta to lead economic growth in Canada in 2018

[SASKFARMER3]

I guess if your almost dead last you only have one place to go thats up. Or is it most in the oil business know that she is not going to get elected and are starting to plan for her day of defeat. Gearing up for future with out nut case.

[Hamloc]

Yes Hamloc I am serious and here is why. You point out Alberta was 45th in 2016 and yet they are 33rd now. You would think that if it was the fault of the current government the number would not have increased. I put forward that the attractiveness for investment has a lot more to due with the price of oil than with who the government is.

Second. In 2014 the investment in oil and gas in Alberta was 60.6 billion. It dropped to 27 billion in 2016. Comparatively, in Saskatchewan it went from 6.7 billion in 14 to 3.5 billion in 16. In percentages, the drop in Alberta was 45%. In Saskatchewan it was 52%. Seems strange that the % drop is higher under the Sask Party than under the NDP. Unless the drop has less to do with what party is in government and more to do with the drop in oil prices.

Third, Brad Wall has made numerous pitches for oil companies to move to Saskatchewan, offering all kinds of tax incentives and inducements. Do you know how many oil companies moved from Alberta to Saskatchewan? As of July 1, 17 zero, none, niltch! Apparently they would rather sit and bitch about the government than actually move. Yes, companies have downsized, and have even gone broke, but that happened in both provinces and again had more to do with the price crash of oil than government.

Fourth. Investment is picking up in both provinces. Outlook for Saskatchewan is an increase of 2.6 billion in investment in 17 over 16. In Alberta the forecast is for 4.1 billion more investment in 17 than in 16. If the business climate is so bad in Alberta you would think the increase in investment would have been higher in Saskatchewan than Alberta but not so.

First, remember in 2014 Alberta was 15th, by 2016 that was 45th and 2017 it 33rd. What changed between 16 and 17? The federal government approved 3 new pipelines. And you are correct the price have oil has improved but at the same time Alberta's rating improved BC's nosedived! Isn't the price of oil the same in BC? Don't they have access to coastal waters? Hmmm

Second, hard to argue with percentages. I will point out that between Dec. 2016 and March 2017 7 multi-national companies divested themselves of oilsands assets. Statoil, Koch Industries, Imperial Oil, ConocoPhillips, Exxonmobil, Marathon Oil, and Royal Dutch Shell. My thought on this is that there are various reasons. Oilsands is more expensive to produce. The cost of the carbon tax plus the emissions cap both put in place by the NDP certainly make long term investment in the oilsands less attractive and more expensive to produce.So in this case, I would say government policy does influence investment.

Third, you raise an interesting point. My guess is that they prefer to stay in Alberta. And yes many companies have disappeared.

Fourth, you basically answered your own question here but you fail to see it. In Alberta $27 billion in investment in 2016, this will increase by $4.1 billion or 15%. In Saskatchewan $3.5 billion of investment in 2016, this will increase by $2.6 billion or 74%. Where is the higher percentage of increase?

Dml, my thoughts on your 4 points, enjoy your day😃

[chuckChuck]

On a world scale Canada has some of the lowest royalty rates and takes a very small share of a resource value that is owned by the provinces.

We mismanaged a a one time non-renewable resource and will have little to show for it in terms of long term sustainable jobs and economic activity.

We let the oil industry run the show.

[SASKFARMER3]

So leaving it in the ground and destroying a whole industry in hope that Fairy Dust and Wind propellors will be the new world.

yea thats a special kind of Stupid again chuck better ideas are needed your getting real boring.

[chuckChuck]

So leaving it in the ground and destroying a whole industry in hope that Fairy Dust and Wind propellors will be the new world.

yea thats a special kind of Stupid again chuck better ideas are needed your getting real boring.

I didn't say leave it in the ground. Norway didn't leave it in the ground. They now have a trillion $ put away for their citizens. I am sure you get bored easily! LOL

[SASKFARMER3]

That would be a great plan chuck oh wait some useless liberal or NDP would start pissing it away till it would be gone.

[LEP]

So dmlfarmer did those discounts changed markedly over the period? I doubt it. It is still all based off wti. Which is my point.

Oh and Big Wheel the oil company do pay for roads in our RM. 5 miles last year and 7 next year. They pay about 70% of the cost upfront.

[dmlfarmer]

So dmlfarmer did those discounts changed markedly over the period? I doubt it. It is still all based off wti. Which is my point.

Oh and Big Wheel the oil company do pay for roads in our RM. 5 miles last year and 7 next year. They pay about 70% of the cost upfront.

My point is $45 WTI may be profitable for Saskatchewan Bakken field production but not for Alberta heavy oil production therefore Saskatchewan would be more attractive at low oil prices.

When Black Pearl invested the $118 M in Saskatchewan at Onion Lake the CEO did not say they were not going to invest in Alberta because of Notley but rather the $800M for the Alberta project was on hold until the price of oil rose back above $55.

[SASKFARMER3]

No company is publicly going to say Nut case is a idiot. But at the board table well yea she's a idiot.