OIL AND GAS UPDATE
- Province of Alberta has named Ed Whittingham to the Board of the Directors of the Alberta Energy Regulator (AER) for a term of 5 years on a part time basis. His background includes:
- Executive Director of the Pembina Institute from 2011-2017
- Co-founder of the Academy of Sustainable Innovation
- Opposition to every pipeline, oil and gas project, even LNG
- Alberta’s mandated oil production cuts are preventing Suncor from sending heavy crude by rail to the US Gulf Coast.
- Imperial Oil is deferring the development of the $2.6 billion Aspen oilsands project because of cut. Had been expected to be completed by 2022 producing 75,000 bpd.
- IEA expects:
- Canadian production to expand by 300,000 boe/d by 2024 (total of 4.6 million boe/d)
- US production will account for 70% of increased global oil supply through 2024, adding 4 million boe/d for a total of 19.6 million boe/d.
CANADIAN DEBT LOAD
- Combined global debt owed by governments, businesses and households now amounts to US$240 trillion, nearly $100 trillion higher than 2008 and 3x global GDP.
- Canadian household debt is now $1.785 for every $1 of disposable income.
- Q4 Aggregate household debt = $2.21 trillion (Mortgages $1.44 trillion; consumer credit and non-mortgage loans $769 billion)
- Leger survey showed 19% of Canadians believe they will have to sell assets, tap into an RRSP or take out a 2nd mortgage to pay down debts this year.
- 62% of indebted Canadians expect to take on more debt this year.
BOEING 737 MAX 8 AND 9 SUMMARY
- France is evaluating the data recorder from the downed Ethiopian 737 Max 8
- In Canada, Air Canada has 24 of a fleet of 400; West Jet 13 of 175 and Sunwing 4 of 40
- Most airlines fly full so expect higher fares and cancelled flights
- Planes are expected to be grounded through April.
- Boeing has suspended new plane deliveries while airlines around the world are reevaluating their outstanding orders.
- Questions around adequate pilot training have not yet been answered.
- Manpower group says 1 in 6 Edmonton employers plan to hire this spring.
- US citizens will need visas to travel to the European Union starting in 2021 at a cost of $7.90. Visas are obtained online and stated as an effort to protect against terrorism.
- UK has voted to delay Brexit. All 27 EU countries must agree to the extension. No definitive extension time has been determined.
- Venezuelan power crisis has shut down water plants, clean water is scarce.