Nov. 23, 2018

ENERGY

  • In the past 10 years, US companies have drilled 114,000 wells in the Texas Permian basin many of which are profitable at US$30 per barrel.
  • 3 new pipelines will be online from the Texas Permian Basin by the end of 2019 with capacity of up to 2,000,000 boe/d.
  • August 2018 US shipped 257,000 boe/d by rail. Canada shipped a record 270,000 boe/d by rail in September 2018, double the amount shipped by rail in 2017.
  • August 2018 Y/Y US added nearly 3,000,000 boe/d, the largest annual increase in US oil production since 1920.
  • Currently US total output is 15.9 million boe/d and is expected to rise to 17.4 million boe/d by December 2019.
  • Trump administration is moving to open more territory for oil exploration in Alaska’s National Petroleum Reserve as well as adding pipelines and potentially roads. Under the Obama administration roughly half of the 22.1 million acre area was off-limits for exploration or development.
  • Canada oil production is now 4.3 million boe/d up from 4 million boe/d in 2017. Canada exported 3.47 million boe/d in September 2018.
  • US imports of oil in December next year are expected to drop to 320,000 boe/d, the lowest since 1949.
  • Saudi Arabia produced a record 11,000,000 boe/d in November 2018 vs 10,400,000 boe/d in August 2018.
  • Alberta Premier Rachel Notley has proposed a 3 year plan for Ottawa and Alberta to buy and operate rail cars to ship 120,000 to 140,000 boe/d for a cost of approximately $350 million.
  • Alberta Premier Rachel Notley has appointed 3 experts to find ways to close the oil price gap:
    • Robert Skinner of University of Calgary’s School of Public Policy
    • Deputy Energy Minister Coleen Volk
    • Brian Topp, Notley’s former chief of staff, past-president of federal NDP party
  • Alberta will pursue building new refineries while a forced production cut remains an option according to Premier Rachel Notley.
  • US coal miner is launching a NAFTA lawsuit against Alberta over its policy to phase out coal saying it is entitled to the same compensation for losses at mines as Canadian firms received.

INTRODUCTION OF CHINA’S LIFELONG POINTS PROGAM

  • China will judge each of its 1.3 billion people based on their social behaviour.
  • A lifelong points program that assigns ratings to each resident is set to begin by 2021.
  • Those with better so-called ‘social credit’ will get “green channel” benefits while those who violate laws will find life more difficult.
  • Tracking of behaviour will be done via online apps like WeChat and Alipay.

CONGRATULATIONS TO OUR VERY OWN DAWN HAWLEY

  • Dawn Hawley, Certified Financial Planner with the Angus Watt Advisory Group was awarded the Donald J. Johnston Lifetime Achievement Award in Financial Planning on November 20, 2018.
    • Demonstrated leadership and had a tangible, far reaching impact on the profession and the public it serves by inspiring increased industry, advisor and / or consumer recognition of the importance of financial planning and the positioning of the CFP designation as the standard to which planners must be held to serve the public interest.