Market Monday – Notley Invests in Alberta Oil, but is damage already done?

Oil Investment for Alberta, but lacking support

I am about to give Alberta Premier Notley some credit. (Yes, readers, I will be doing that today, sorry!) But before I do, I need to talk about some realities.

Oil Sands tough to stay competitive

First, on a global stage, damage has CLEARLY been done to Alberta’s Oil and Gas reputation across the world markets. Alberta Oil Sands (or “TAR SANDS” as the Canadian and Albertan Politicians and the general public have labeled one of Canada’s most important natural resource!)

I mean, come on, if we called Saskatchewan Potash – Pink Poison…. or BC Coal – Columbian Carbon Killer… I’m pretty sure politicians from coast to coast would come to their defence! So what gives!?!?!

Overseas Opportunity for Calgary Companies

My friends and colleagues work on global projects, and have told me they have had to go overseas to find work, and find future projects. I’m going to share one of those today!

My long time friend and quasi-mentor (when I need advice he’s a phone call away), Sajid Sayeed, along with his CEO George Liszicasz at Calgary based NXT have a patented and proven technology – Stress Field Detector (SFD) – They’re expertise in exploration have lead to successful finds, not in Canada, but Internationally.

They will soon start a strategic hydrocarbon exploration survey in the highly prospective offshore basin off a province in Indonesia which is rich in oil and gas. NXT’s technology is being unleashed on behalf of Aceh province and an international firm “Generation Resource Discoveries”.  They’re technology has lead to successful finds in Latin America, now onto SouthEast Asia, and eventually, who knows!

Example of Calgary firms looking elsewhere for O & G

The province of Aceh’s Governor Irwandi Yusuf said the agreement was the first major step toward attracting international companies and investment to Aceh’s oil and gas sector.

“The deal will also open doors to use the latest innovative technologies and processes that will fuel Aceh’s ambition toward faster economic prosperity for the people,” Irwandi said Friday.

So, they have a Governor (Essentially a Provincial Premier) stating clearly they want international investment, international trade, international technology, and open doors to their Oil and Gas sector.. they have rich basins and want to create investment for the Province as a whole!

Readers, this is how it should be done… you can’t show the world that you want to close the trade of Oil & Gas.. and then flip flop later on and expect the rest of the world to take you seriously! Damage is done and it needs to be repaired…… speaking of which…..

Alberta unveils $1 BLN investment to upgrade Bitumen facilities

Premier Rachel Notley said the investment will essentially be used for loan guarantees and grants for up to five partial oil upgrading facilities — resulting in approx. $5 bln of future private investment.

My readers have heard me talk a lot about Canadians bitumen “discount”…. The main goal of the upgraders is to have Alberta’s thick bitumen “upgraded” so that it can flow through pipelines, leading to an value, and essentially more sales. (Good news!)

Better Quality – But Still Land Locked

Okay, so, I’ll give Premier Notley some credit as promised….  In the years since the election, I think I’ve seen an “understanding” from our Premier of the value of our Oil and Gas industry… funny how that can happen when jobs and money are on the line.. but I digress.

Premier Notley is asserting herself as trying to work on behalf of the provinces main resource, instead of out-rightly against it. (Good news x 2)

I have said earlier, and a lot, that damage has been done in the province on a global scale. Where is this magical “private investment” going to come from?? Beats me…. Canada based Suncor already pulled the trigger on projects early this month… US companies are shrinking their Alberta assets, and Asia is pretty quiet on Alberta at the moment…..

Local Investment, Good… lack of Federal and Canadian support, Bad!

Alberta needs investment, and the provincial government is spending MINE and YOUR money on it… okay.. but your also going to build wind-farms… so I’ll call it even! (Don’t get me started on that Energy Efficiency program.. is it even still a thing???)

Federal Budget Day tomorrow folks, so let’s see what the Prime Minister and Finance Minister have up their sleeves. (Wait, do Nehru jackets from India HAVE sleeves?? Not Sure!)

That’s your Market Monday,

I’m in Moose Jaw today and got to meet Calgary Flames freakin’ legend Tim Hunter! *sorry for the bad-photo Tim but it was a dream-come-true for me!

Cheers!

Kelly Hall

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