Archive for February, 2015

Financial Post

The pain of crude’s collapse is beginning to bite in Alberta, from the oil sands boomtown of Fort McMurray to the corporate boardrooms of Calgary.

[np_storybar title=”Calgary homeowners and buyers left wondering what’s next as once-sizzling housing market chills” link=”http://business.financialpost.com/2015/02/23/calgary-homeowners-and-buyers-left-wondering-whats-next-as-once-sizzling-housing-market-succumbs-to-chills/”]Bank of CanadaThe city’s real estate sector has cooled tremendously thanks to a precipitous decline in oil prices and that has people speculating what will happen to housing prices. Read on
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As the $340-billion petro-economy confronts an oil market meltdown, a decade-long investment spree is being reversed, layoffs and spending cuts are in full swing at companies such as Suncor Energy Inc., and everyone from oil drillers to real estate agents is feeling the pinch.

In Fort McMurray, where the oil is so near the surface it oozes out of the ground in places and coats people’s boots, the mayor is reconsidering city projects. In Calgary, which boasted Canada’s biggest concentration…

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Calgary Herald

An RBC Economics report suggests a rebound in oil prices, starting by the middle of this year, will help Alberta avoid a recession.

The report, by senior economist Robert Hogue, said an uptick in prices will “help rebuild confidence in the province and prevent activity from entering a full-blown contractionary spiral.”

While Hogue’s analysis says the province won’t see a recession, it suggests a dramatic slowdown in economic growth — it forecasts real GDP growth of 0.6 in 2015, down from 2.7 predicted in the bank’s December outlook. GDP growth was 4.1 per cent in 2014.

Hogue said the most immediate effect of the slide in oil prices in Alberta is a significant drop in capital spending plans by oil companies. The Canadian Association of Petroleum Producers has forecast that member companies would cut investments by 33 per cent in Western Canada in 2015, including a 24 per cent reduction in the…

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