Showing posts from June, 2015

Resources continue to be the foundation of BC's economy

The resource sector is the foundational stone upon which the BC economy was built, and it is as important today as ever This article by Resource Works senior research fellow Marlyn Chisholm is adapted from the BC Check Up, a publication the Chartered Professional Accountants of BC joint venture, on behalf of ICABC, the Certified Management Accountants Society of BC, and the Certified General Accountants of BC. A link to that full report (in PDF format) is  here .  Reproduced with permission Article originally published on June 22, 2015 by Resource Works; can be obtained on their website at this link . What we've forgotten BC has witnessed profound changes in its economic structure and trade patterns since the beginning of the 20th century. During this time our province has transformed from a “hewer of wood and drawer of water” primarily reliant on the export of commodity lumber and minerals, to one with a far more diversified economy, dominated by a rapidly prolifer

U.S. Gasoline Consumption Up, Shale Oil Production Down

By: David Yager, National Leader Oilfield Services Originally published in MNP's Oilfield Services News - June 23, 2015 On June 17, Bloomber News reported U.S. gasoline consumption in the first quarter of 2015 was 100,000 barrels per day higher than Energy Information Administration estimates of 8.71 million b/d for the period. American drivers apparently travelled a record 720.1 billion miles in the first three months this year, a distance Bloomberg described as "...3,900 return trips to the sun." The article said the U.S. economy added 3.1 million jobs in 2014, the most since 1999, which should translate into a robust summer driving season when Americans hit the road for summer vacations. Despite recent price increases following higher crude prices, gasoline is selling for about a dollar a gallon less than a year ago. Refineries on the Gulf Coast of Mexico processed record amounts of crude for the week ended June 2. U.S. refineries are running at an average 95%

A Primer on the Carbon Bubble

Originally published by the Delphi Group. Can be retrieved from their website at:  In the lead up to the UN climate change talks in Paris this year, there has been a great deal of speculation regarding whether a new international GHG reduction target will be set, and ultimately what this would mean for businesses and the average person. Regardless of what happens in Paris, there is increasing climate change related pressure on energy producers on a number of fronts. One key shift has been around the concept of the carbon bubble, and the related impact of the divestment movement. What is the carbon bubble? It is an accepted fact that carbon dioxide is causing an enhanced greenhouse effect that is increasing global temperatures.  Scientists and the countries of the world have agreed that the planet cannot warm by more than 2°C without catastrophic impacts. Of significant concern to investors is that some fossil fuel companies aren’

Six remarkable energy facts from 2014

Originally published in BP's Statistical Review 2015, article can be found here:  How did the energy world change in 2014? Now in its 64th year, the BP Statistical Review of World Energy gathers thousands of numbers that reveal what has happened in the energy markets over the past 12 months. Here, BP’s chief economist, Spencer Dale highlights six significant statistics from the review that help to paint the big energy picture The overriding story from this year’s  BP Statistical Review  was a change in ‘weather’ conditions in the energy market during 2014. We saw an end to the eerie calm that had settled over the energy markets from around 2011 and more volatile conditions – that tend to characterise these markets – resumed once again. Here are six of the most remarkable facts from the energy world in 2014. Each of them raises questions for the industry about

Tim Hortons' Enbridge Reaction - The Real Issue

By: David Yager, National Leader Oilfield Services Originally published in MNP's Oilfield Services News - June 9, 2015 The story was impossible to miss. Oil and pipeline haters used the internet (social media and email) to demand Tim Horton's drop its paid advertising from Enbridge from their in-store TV information service. Based on 29,000 electronic signatures on some sort of online petition, Tim Horton's (now owned by global conglomerate Burger King) wilted and dumped the ads immediately.  This caused predictable outrage from all manner of commentators. The theme was that Tim Horton's is the working oilpatch's favourite coffee and donut outlet, but Tim Horton's fears the online oil haters more than a negative reaction from its own blue collar clientele. This will be a news story for a day or so, another in a seemingly endless stream of corporations having their activities driven and shaped by organized but largely anonymous citizens who threaten th

Behind the Eight Ball & Fighting an Uphill Battle

By: Lucas Silva, CAGC Article originally featured in the summer 2015 edition of their quarterly magazine, The Source. Article can be retrieved here: In recent years, the oil and gas industry has seen a number of negative situations play out, partly due to a lack of effective communication within the public body. Keystone XL, Energy East, Northern Gateway and Kinder Morgan expansion have all been, directly or indirectly, negatively affected by public opinion, whether justified, or not. These are just a few examples of projects that have been affected, or even halted, but negative public opinion can be felt throughout the industry, hurting its ability to take full advantage of the opportunities in place. This has forced the industry to change its approach to communicating with the public. The Canadian Association of Petroleum Producers (CAPP) has introduced a brand new approach, calling it: From Passive Endorsement to Active Engagement