- Cdn Assoc. of Petroleum Producers estimates that the deep Western Canadian Select discount is costing Canada approx. $50 million/day for a total of $13 billion in the first 10 months of 2018.
- Premier Rachel Notley has announced there is ‘no action’ to be taken to tackle the low price of oil because of the lack of consensus within the industry.
- UCP party leader, Jason Kenney, says the oil glut is best solved by the private sector.
- CN rail has come up with a patented product, ‘Canapux’ which is solidified crude encased in plastic as a safer way to move crude.
- Saudi Arabia said OPEC and its allies should cut production by about 1.4 million boe/d.
CANADIAN FALL ECONOMIC UPDATE EXPECTATIONS
- Finance Minister Bill Morneau will present the Canadian Fall Economic update on November 21st.
- The feed-back the government received includes:
- Reduce corporate taxes
- Reduce personal taxes
- Accelerate write-offs of capital investments
- Not implementing the federal carbon tax
- The expectation is that the government will be focused on an accelerated write-off of capital investments.
- Our capital investments in machinery and equipment has been in a steady downtrend since 1998.
- With our current equipment, we are at 85% capacity utilization
- US is at 78% capacity utilization with increasing expenditures on new equipment, increasing volumes, reducing unit costs and in many cases improving quality
- New rules will likely apply across all sectors so that the Government is not picking winners and losers.
- Expected to include measures on trade, including fostering freer trade within
ONTARIO CANNABIS REGULATIONS
- Cannabis producers will be limited to a 9.9% ownership stake in licensed marijuana retailers.
- No minimum distance between retailers.
- Each retailer will be allowed to operate up to 75 stores.
- Aurora Cannabis reported that their cash cost for cannabis sold is $1.87/g down from $2.09 Y/Y; production costs $1.70/g down from $1.91.
- The number of international students enrolling in US colleges and universities fell 6.6% in 2017-2018.
- Spending by US states topped $2 trillion for the first time ever in 2018, led by Medicaid expenditures at 27.9% of total expenditures vs 20.5% in 2008.
- More than 1/3 of Americans plan to shop on Black Friday; 37% of shoppers intend to shop solely online.