Apr. 12, 2019

CANADIAN ENERGY SECTOR

  • Petro LMI (labour statistics information division of Energy Safety Canada);
    • Direct employment in Canada’s oil and gas sector is expected to fall by more than 12,000 jobs in 2019
    • In 2014 the number of direct jobs in the energy sector was 226,500 and forecasted to drop to 173,300 by the end of 2019, a drop of 23%
    • Factors impacting the drop included energy prices, decline in investment spending and lack of capacity to markets
    • The oil and gas labour market shrank quickly in 2015 and 2016 followed by a relatively flat period over the past 2 years
  • Trican Well Services Ltd. recently cut 160 jobs due to a 40% decline in revenues in Q4 2018.
  • Cdn Association of Oilwell Drilling Contractors reports that only 36% of its member’s rigs were employed in Q1 2018.
    • Members relocated 16 rigs to the US in 2018 versus 6 in 2017, and this trend continues in 2019.
  • Petroleum Services Association of Canada recently forecast 5,600 wells to be drilled in 2019 vs. 6,948 in 2018.

ONTARIO BUDGET

  • Accelerated write offs for businesses to encourage capital spending and a childcare tax credit.
  • Premier Doug Ford plans to balance their budget within the next 5 years, after deficit funding for the past 11 years and with a current shortfall of $11.7 billion.
  • Ontario’s growth rate forecast is 1.4% for 2019, 2.2% for 2020 and represents 40% of Canada’s GDP.
  • Modest increase in spending for healthcare and education.

CANADA’S BUILDING CODE IS GETTING A CLIMATE CHANGE REWRITE

  • If no changes are made to the way we build, infrastructure failures linked to climate change could cost Canadians over $300 billion over the next decade. New guidelines to include:
    • Certifying the resiliency of roofs in 2020 for extreme weather events
    • Optimizing concrete mixes for pavement by 2021 to mitigate flooding
    • New structural design rules by 2025
    • New standards for basement flooding by the end of 2019 and storm sewers by 2021
  • Canada’s construction industry is worth $171 billion and employs 1.2 million
  • Constructing a zero-emission building will cost on average 8% more

TIDBITS

  • Boeing has called 737 Max 8 “not suitable” for “high/hot” airports with higher elevation that require longer runways and faster speeds for takeoff.
  • President Trump announces “my trade wars aren’t finished yet and a weakening global economy will just have to deal with it”.
  • Disney+ will launch in the US in November at a cost of US$6.99/mth, with productions from Marvel, Star Wars and the Simpsons; making any new film releases exclusive to its platform.
  • StatsCan says Canadians who buy pot legally are paying, on average, almost 57% more than those who buy illegally.
  • The Teranet-National Bank Composite National House Price Index dropped 0.3% in March, a sixth month consecutive drop.