Feb. 13, 2015

OIL – ALBERTA

  • In November, Alberta’s oil extraction fell 166,667 boe/d to nearly 3,000,000 boe/d but is still 7% higher than 2013.
  • Alberta exported 2,300,00 boe/d in November unchanged from October.
  • Alberta’s next 3 provincial budgets are being built on WTI averaging $51.24 for 2015/16, $62.17 for 2016/17 and $75 for 2017/18.

OIL – US

  • Overall, the US added 1,000,000 boe/day to production in each of the past 3 years.
  • Total US rig count declined by 98 this week to 1,358; oil down 84 to 1,056 and gas down 14 to 300.
  • US Shale output will reach a record 5.468 million boe/day in March 2015 up 3.4% from Q1 2014.
  • In the US major shale formations the peak rig count was 1,157 October 2014. So far 151 have been idled and EIA estimates that another 200 will need to be idled for production growth to stall.

EUROPE

  • Germany imported 12.6 metric tons of coal, up 6.6% Y/Y from Russia. This represents more than 25% of Germany’s foreign purchases (including natural gas, agriculture, finished goods etc).
  • Russia supplied 46% of Germany’s natural gas in 2013.
  • Euro area Q4 GDP grew 0.3% vs 0.2% Q3.
  • German Q4 GDP grew 0.7% vs 0.1% Q3 while France grew 0.1% Q4 vs 0.3% Q3, Netherlands Q4 up 0.5%, Italy stagnated and Greece Q4 GDP fell 0.2% after 3 consecutive quarters of growth.
  • Spanish 2014 home sales rose 2.2% Y/Y to 319,389 well below the 2006 figure of 955,186.

TIDBITS

  • For the 3rd consecutive year, Calgary (up 3.6%) and Edmonton (up 3.3%) are the fastest growing cities in Canada.
  • Canadian December average price gap between a condo and a single family home hit $320,000 in Calgary, Vancouver, Toronto and Montreal. The gap has more than doubled in the past 10 years. In Vancouver the average house price increased 120% since 2005 vs a condo up 50%.
  • Canadian Food Inspection Agency has confirmed one case of ‘Mad Cow Disease’ in Alberta. No part of the animal’s meat entered the human or animal feed systems.
  • Apple sold 875 million Swiss Franc 10 year bonds at a yield of 0.281% and 375 million Swiss Franc 15 year bonds at a yield of 0.74%.
  • Venezuela announced a new foreign exchange system allowing a free-floating exchange rate, effectively a devaluation of their currency.