Feb. 15, 2019

ENERGY

  • First Nations say that the Province of Alberta “has no jurisdiction over their lands and resources and the decision regarding oil curtailment does not apply to their oil and gas operations”.
  • IEA is forecasting demand growth of 1.4 million boe/d and increased supply growth from non-OPEC countries by 1.8 million boe/d.
  • EIA says US crude supply will average 12.41 million boe/d in 2019 (3rd consecutive annual record production) and 13.2 million in 2020 (current production 11.7 million boe/d).
  • First coal-fired plant in the US since 2015 will open this April at the University of Alaska Fairbanks, just 100 miles from the state’s only coal mine.
  • Saudi Arabia sent just 415,000 boe/d of crude to the US last week, matching a record low dating back to 2010.
  • In 2018, the Netherlands became a net importer of natural gas for the first time since 1963. Drilling at the Groningen field has been restricted because of earthquakes.

US

  • President Trump signed the bill to fund the US government and said he will be signing National Emergency order to fund $8 billion for the wall.
  • US household debt totaled a record US$13.54 trillion at the end of 2018.
    • Mortgages accounted for 67% (down 6% vs 2008)
      • 58% of mortgage originations went to borrowers with the highest credit rating vs 36% in 2008
      • Sub-prime mortgages comprised 3.5% vs 9% in 2008
    • Student and auto loans accounted for a combined 20% vs 11% in 2008
    • US Auto loans delinquencies over 90 days are at 2.4%, the highest level since 2010
  • US job openings surged to a record high 7.3 million in December; 6.5 million are unemployed.

TIDBITS

  • Albertans had 54,000 babies in 2017, a decline of 4% Y/Y (record was 57,000 in 2015).
  • Province of Ontario is committing $40 million over 3 years for modernization and innovation in the auto sector.
  • Vancouver’s Electra Meccanica Vehicles is shipping 70,000 one seat electric vehicles ($15,500 each) over the next 2 years across the west coast of North America.
  • VW will use green power to assemble its first electric car making it ‘carbon-neutral’.
  • Amazon scrapped its HQ2 plans in New York City, costing 25,000 jobs as the company was being pressured to become unionized.
  • People in China made 415 million domestic trips (up 7.6%) during the 2019 Lunar New Year holiday.