Apr. 13, 2018

Trans Mountain Pipeline

  • Kinder Morgan has suspended all “non-essential” spending on its Trans Mountain pipeline
  • Federal Finance Minister Bill Morneau said: “We know that showing Canada is a place where important projects can get done is critically important”.
  • Premier Notley stated that Alberta is ready to take a stake in the project if that is what it takes to keep it going.
  • CN Rail and CP Railway are reluctant to add crude-by-rail capacity until oil companies commit to shipping set volumes for the long run.

Oil, Gas & Energy

  • Shell Canada is testing a battery powered by a little-known metal found in bitumen.
  • Bahrain discovered an enormous shale oil resource under its shallow waters. Resources probably stretch into Saudi and Qatari waters.
  • U.S. gas output is expected to expand by 24 billion cubic feet, or 32%, through 2025 from last year.
    • Industry needs to spend $170 billion over the next 7 years on pipelines, compressor stations, export terminals and other related infrastructure
    • The Permian Basin may have to slow down the output of crude due to limited capacity to handle the gas that’s flowing as a byproduct

Softwood lumber

  • Softwood lumber exports from B.C. to the U.S. plunged 20% Y/Y.
  • First-quarter shipments from the B.C. Interior, which account for more than 90% of B.C.’s lumber exports, down 18% Y/Y, largely due to transportation issues. B.C. Coastal shipments were 36% lower.
  • Total Canadian shipments in the first three months were down 17.4%.
  • Shipments from Quebec — Canada’s second-largest forestry producing region — were down 16.6% in the first quarter and Ontario was 8.6% lower. Alberta was down 28% while the Maritimes were nearly 5% higher.
  • Rail issues include cold weather which affects the length and speed of trains.

Tidbits

  • Global debt rose to a record $237 trillion in the 4th quarter of 2017, more than $70 trillion higher from a decade earlier.
  • Iran was hit by a cyber-attack leaving a U.S. flag on screens along with a warning: “Don’t mess with our elections”.
  • Initial coin offerings (ICOs) generated $5.6 billion in 2017, and were mainly driven by speculative investments.
  • Toronto-based Bunz Inc. is touting Bunz Trading Zone (BTZ) as the first Canadian cryptocurrency launched to an already-established community – its own members.
  • Apple Inc.’s sites worldwide are now completely powered with clean energy, including retail stores, offices, data centers and co-located facilities in 43 countries.
  • China is investing in roads with solar panels, mapping sensors and electric-battery rechargers, embedded underneath transparent concrete, as the nation tests an “intelligent highway” that could speed the transformation of the global transportation industry.