Nov. 9, 2018

IMPERIAL OIL $2.6 BILLION ALBERTA OIL SANDS

  • Imperial Oil to begin construction in Q4 2018 of the $2.6B solvent-assisted SAGD (steam assisted gravity drainage) Aspen project, located northeast of Fort McMurray.
  • 1st phase 75,000 bpd (of 150,000 bpd total) creating 700 construction and 200 permanent jobs.
  • Long life reserves (over 30 years) of high quality bitumen that will provide double digit returns with $40bbl West Texas oil pricing.
  • Next generation oil sands recovery will increase competitive pricing, reduce emissions and water contamination.
  • Project to be completed in 2022 with options for delivery, including increasing refinery capacity and rail delivery.
  • 5 years ago they invested in building a rail terminal (for insurance purposes), which is currently operating at 50% (capacity is 100,000 bpd).
  • Province of Alberta took 5 years to approve the Aspen project.

NATIONAL BANK OF CANADA: HOUSING AFFORDABILITY, November 8/18

  • Canadian housing affordability deteriorated in Q3 for the 13th consecutive quarter.
  • The time required to save for a 10% down payment, at a savings rate of 10%, edged up to 57.3 months from 57.2 (almost 5 years).
  • Vancouver average price for non-condo $1,327,085/condo $644,330.  Household income needed to be affordable $283,313 and $115,706.
  • Toronto average price for non-condo $887,025/condo $521,239. Household income needed to be affordable $159,289 and $93,602.
  • Calgary average price for non-condo $501,759/condo $273,971. Household income needed to be affordable $90,104 and $49,199.
  • Edmonton average price for non-condo $429,031/condo $228,536.  Household income needed to be affordable $77,044 and $41,040.
  • Monthly rent is higher in Edmonton and Calgary than mortgage payments while lower in Vancouver and Toronto.

NOVEMBER: FINANCIAL LITERACY MONTH, Dawn Hawley, CFP, Angus Watt Advisory Group

  • On average we live in retirement for 15 years.  In 2017, the current age of retirement is 64.
  • Health is not usually an issue until age 77.
  • Approximately 25% of National Bank’s employees come back to work after retiring.
  • Health problems (costs), fear of running out of money, burden on one’s family and loneliness are cited as the most common concerns in financial planning for retirement.
  • Statistics Canada 2017 census found Canadian’s with higher education or without employer-sponsored pension plans are more likely to work beyond 65.

TIDBITS

  • Province of BC may not be able to support any new or expansion of LNG because of climate change agenda to reduce carbon emissions by 2030.
  • The Supreme Court of Canada overturned a lower court decision to allow Ottawa, participating provinces and territories to create a co-operative Capital Markets Regulatory Authority.  Alberta, Manitoba and Quebec have previously opposed this plan.
  • President Trump is expected to replace Commerce Secretary Wilbur Ross before yearend with former CEO of World Wrestling Entertainment, Linda McMahon, according to CNBC.