Dirty oil to Cleaner Energy, What is Next?

What is Dirty Oil in Alberta oilsands

Dirty oil or tarsands in the Alberta oilsands industry is what environmentalist are all worried about. Dirty oil refers to the remains after the removal of the oil from the oilsands. Alberta oilsands accounts for the only commercially mined oilsands in the world. Though there are other oilsands reserves, in the United States and Venezuela, Canada has the only commercially viable development. Located in Northern Alberta in the Athabasca region, Alberta oilsands companies such as Suncor, Petro Canada, and Husky Energy have been extracting the dirty oil for over 30 years. With the improvement in technology and the rising US dollar per barrel cost of oil, Alberta oilsands represents the worlds largest growing oil reserves. Dirty oil is what the environmentalist focus on, however, when they discuss this potential. The Alberta government and the Alberta oilsands companies disagree with the environmentalist and cite reasons such as the improvement in extraction technology and the already present dirty oil in the region. The fact is dirty oil exists in Northern Alberta’s Athabasca region and the oilsands companies are not making the situation any worse. However, in the eyes of the environmentalist they measure the green house gases created by dirty oil production and the environmental impact on wildlife such as ducks who are dying as a direct result of exposure.

What types of Clean energy alternatives are there?

But if dirty oil is not the solution for the worlds energy consumption then what other clean energy alternatives are there? We have solar energy which harnesses the power of direct sunlight to convert the heat to usable power. Solar energy is clean and renewable. The harnessing of solar energy does not create greenhouse gases and solar energy is a renewable resource. While solar energy technology has been available for more than two decades, the production of solar energy has not been cost effective or commercially viable up to the present time. We see limited uses of solar energy as a clean energy alternatives by homeowners who place solar panels on their roofs to supplement their home’s power consumption needs. Some firms have been selling solar energy packs which can be used to recharge batteries on cars or boats and even provide hot water for a shower in the wilderness. Another clean energy alternative is wind power. The clean energy alternative created by wind is through the use of wind farms that harness the power of wind to turn turbines and create energy that can be stored or transmitted for direct use. Wind energy is a growing clean energy alternative but currently still plays a small role in clean energy consumption in the world. One of the requirements of using wind energy is the availability of lots of land in a fairly windy environment. Afterall we need wind to turn the turbines to create the energy. The cost of wind turbines and the need for constant replacement is also one of the reasons why we don’t see a large development of wind turbines in every city.

Dirty oil or clean energy alternatives, who will win the Energy wars?

Dirty oil or clean energy alternatives, who will win? The answer is not as simple as stating that one energy is better than the other and we should stop using one for the other. The world is a bit more complex than this and dirty oil makes money for many investors as well as provides a reliable, fairly inexpensive source of energy. Dirty oil has a limited supply but this supply will stay last for more than a few hundred years given current technology. With the improvement in technology we may see dirty oil last even longer and burn cleaner than it is currently doing. Clean energy alternatives such as solar energy and wind energy will depend greatly on the improvement in technology in helping lower their production cost and raise their output. The ability to provide a commercially viable source of clean alternative energy is the big hindrance in the rapid development and acceptance of this apparent valuable resource. It is interesting to note that even Alberta Oilsands company Suncor produces clean energy using biofuel and is wind power. Suncor is an integrated energy company and uses oilsands, biofuel, and wind power as the tools to provide energy to the world.

Alberta oilsands companies: Suncor buys Petro Canada

Why has Suncor bought Petro Canada?

Suncor has proposed to buy rival Petro Canada to form Alberta Oilsands largest oil company. The $15 billion US ($18 billion Canadian) stock purchase by Suncor of Petro Canada would be the second biggest purchase of an Alberta oilsands in the history of oilsands mergers and acquisitions in Alberta Canada. The purchase is said to help Suncor energy slash costs by reducing redundancy and become a more focused Alberta oilsands company. This is crucial in a period where we see oil prices at lows of $30 to $40 US per barrel and without any idea of how long US oil prices will remain at this level. Survival in the long term is what Suncor has been really good at and that is why they are Canada’s largest integrated Alberta oilsands company. This is an all-share deal and rates as the biggest Alberta oilsands takeover in history. The deal will help Suncor save over 1 billion in annual savings, a significant amount considering the limited access to financial resources in the current economic environment.

Is the Alberta Oil sands cheap?

The purchase of Petro Canada by Suncor begs the question of whether it is a good time to buy other Alberta oil sands companies. Are the Alberta oil sands cheap at this moment in time. Like Alberta real estate in Edmonton and Calgary which has seen a fall of over 30 percent in the last year, oil sands companies have likewise seen significant declines. The stock market, Toronto Stock exchange, Dow Jones, and S&P 500 are all significantly down over the last year and every stock that trades on the exchange has been brought down. It is more a lack of confidence in the financial markets as a result of the global financial crisis that is creating this current buying opportunity. But if Alberta oil sands is cheap right now, who can financially afford to buy it right now. There are very few big players in the Alberta oil sands industry who have also not been significantly hurt by the global financial crisis. Surviving the short term is a key priority for all Alberta oil sands companies despite any cheap buys. We may see other global companies from the Middle East or Asia (China in particular) make a serious offer for cheap Alberta oil sands companies. The Suncor offer for Petro Canada does seem to indicate that it is indeed a time for cheap Alberta oil sands purchases. Suncor, however, will also see significant savings in the purchase due to cost reductions which is an additional incentive for the current purchase.

Are there other Alberta oilsands companies going to be purchased soon?

What other Alberta oilsands companies are going to be snapped up in the next 12 months. It is only a matter of time before the buying spree continues. With the firming of US oil prices at $50 US per barrel, there seems to be more confidence in the medium term for Alberta oilsands companies. The stock market has recovered significantly in the beginning of April 2009 and this points to a growing consumer confidence. Alberta oilsands companies that may be bought first will be the bargain shoppers who are looking for companies with great pieces of land in the Athabasca region but short on financial capital. Companies such as BA Energy will be one of the targets of these Alberta oilsands investors who are eyeing the potential of owning prime Alberta oilsands real estate. The long term trends of the oil industry are still rosy as the demand for oil will continue to be much higher than the annual supply. This and the inability to find alternative cheap sources of energy is the reason that conventional oil will continue to rule the world.

Alberta Oil is cheap supply for US Obama

Ed Stelmach says US will need Alberta Oil

Alberta oilsands produces a reliable and secure oil source for the US. Ed Stelmach sent a clear message to the Obama administration when he said US will need Alberta oil in the future. It is important for the US to recognize that Canada’s Alberta rich oil sands is a secure and cheap source of oil for the growing US Demand. Fossil fuels including the oilsands will provide more than 80% of the supply needed to satisfy world demand for oil. It is in the best interest for the US to work closely with Canada in implementing a viable solution to develop the oilsands responsibly. Expel the myths and produce the facts of Alberta oil and let the world know what the Alberta oilsands companies can do to protect the environment. In 2008, the Alberta Government created a $2 billion dollar fund to promote solutions to solving the dirty oil problem. This and other solutions from the oilsands’ companies themselves will serve to promote this abundant resource for the growing demand for oil consumption.

Obama concerned about Alberta Dirty Oil

Obama has an aggressive plan to combat climate change. He says that we can not punish the future by exploiting the present and we will not tolerate the increase in green house gas emissions while he is President. This is a direct blow to Alberta oilsands companies and the growing environmental concern about ‘dirty oil’. Alberta’s dirty oil image is a picture of an environmental disaster waiting to happen. We are shown images of Northern Alberta’s oilsands production in Fort McMurray, the Athabasca region, and how the destruction and carnage of the environment is occurring without concern. Environmentalist are adamant that dirty oil in Alberta cannot continue and they will work harder in showing the world the truth that is happening to this ecosystem. Obama further stated that his presidency will reduce the US’s dependence on ‘dirty oil’ for good. Ed Stelmach of the Alberta government on the other hand has been working vigorously in fighting the environmentalist by dispelling the myths behind their stories.

Dirty Alberta Oil: Myths and Facts

Myths about Alberta oilsands are abundant. But what are the true facts of what the Alberta oilsands is doing to the environment. With a $2 billion dollar investment by the Alberta Government in researching solutions to develop the oilsands more cautiously, we are sure to hear a lot of buzz about the oilsands in the near future. One of the myths about the oilsands is the amount of impact that oilsands has on the environment. A study was done comparing the emissions that currently are produced by coal production, a large polluter in the US and China, versus the oilsands. When compared with this polluter, the oilsands represents less than 1 percent of the emissions being emitted by coal production. Another myth follows about the oilsands environmental impact due to tarsands pools created from extracting the oil and leaving the toxic remains behind. Of course the toxic remains have always existed in the area even without removing the oil. The environmentalist are concerned that the process of extracting the oilsands will create a bigger impact than if no production was done. While this may be true of only some rare situations, the truth is that the tarsands production is very careful in leaving behind tarsands pools in a way that will not be worse than the original case. Of course the results are hard to prove by both sides given the short amount of time that has passed since the production of the oilsands.

Alberta Oil Sands Companies: Suncor Energy

Suncor develops Alberta Oilsands in the Athabasca Region

Suncor Energy Inc. is an integrated energy company with large holdings in the Alberta Athabasca region. The company was founded in 1967 and currently employs more than 6,500 employees. Being an integrated energy company, Suncor has large holdings in the Alberta Oilsands Athabasca region, explores, produces and develops natural gas, has downstream operations in Ontario and Colorado that market the company’s refined products. In addition to it’s oil and natural gas, Suncor also has investments in renewable energy including wind power farms and Suncor’s ethanol facility, a known biofuel, in Ontario. Though its main focus is on the development of the Alberta Oilsands and is one of the first Alberta Oilsands companies to locate in the Athabasca region.

Suncor and Alberta Oilsands production

Suncor Energy Inc. main focus is Alberta Oilsands production. The Alberta Oilsands is an oil rich area that has more commercially viable oil than anywhere in the world and the reserves are only getting larger with improvements in technology. Suncor has been developing its Alberta Oilsands since 1967 and continues to be one of the biggest Alberta Oil sands companies in the area. By recovering oil, known as bitumen, from the oil sands and refining it to produce products that include feedstock and diesel fuel, Suncor provides an economically viable product that is in high demand around the world. The two methods that Suncor uses to recover oil from the Alberta oil sands is surface mining and in-situ (similar to conventional oilwell production). Through advances in Alberta oilsands technology and computers and engineering techniques, the current proven reserves in Canada’s Alberta Athabasca region is only second to Saudi Arabia. However, our potential reserves given an improvement in the technology in the future are far in excess of anywhere else in the world.

Suncor Energy Inc.on the NYSE and TSX: SU

Trading on the Toronto Stock Exchange, TSX, and the New York Stock Exchange, NYSE, under the symbol SU, Suncor is a global energy company with access to private capital. Suncor has a dividend reinvestment option that allows current shareholders to easily and cost effectively reinvest their regular quarterly dividends into more shares of Suncor. The stock price of Suncor hit an all time high in 2008 of $73. With the current fall in oil prices, Suncor has fallen back to its 2004 and 2005 price range of $20 to $30 per share. The value of Suncor is highly dependent on the price of oil and the world demand for oil products. While the oil prices remain in the range of $30 - $40, the price of Suncor and other Alberta oil sands companies including BA Energy, Husky Energy, and Petro Canada will all be affected by the weakness in the commodity price. When the price of oil peaked at $140 per barrel we saw the high reach $73 per share so there is a large range of share prices in the current market. With global demand expected to continue to be robust and after the financial crisis is passed, we expect to see another jump in the price per barrel of oil. While alternative energy such as windpower, biofuel, and solar panel are still in its infancy, we can also continue to expect the reliable consumption of oil to continue.

Alberta Oilsands Companies Feature: Husky Energy

Husky Energy and the Alberta Oilsands

Husky Energy is an integrated energy and energy related company. Incorporated in Calgary, Alberta, Husky Energy has operations all across Canada. Vertically integrated oil company with a listing on the TSX: HSE, Husky Energy is a developer, an integrator, and a retail seller of oil. Husky Energy is a large player in the Alberta Oilsands in Northern Alberta. Husky energy has a 100 percent interest in oil sands leases east of Kearl Lake, about 60 kilometers northeast of Ft. McMurray. The company’s website is www.huskyenergy.com.

BP Energy and Husky Energy

In December 2007, BP Energy acquired half share in Sunrise field in Northern Alberta, operated by Husky Energy. The deal will have Husky acquire a half share of BP’s Toledo oil refinery in Ohio US. This joint venture will form an integrated North American oil sands business. A 50/50 joint venture will be independently operated and developed. BP’s purchase of Husky’s Sunrise project gives BP a bigger stake in the Alberta oil sands market. The Sunrise oil sands field is expected to have its first production of bitumen in 2010 with up to 200,000 barrels of oil per day (bpd) within 10 years. The total production cycles is expected to last 40 years. Husky’s Sunrise projects is located in the Athabasca oil sands region in the north-eastern part of Alberta. The joint venture gives Husky an integrated oil sands venture with upstream and downstream businesses. BP is one of the world’s largest oil and gas companies with operations in 100 countries over six continents.

Husky Energy and Husky Market and Mohawk Gas

Husky Energy operates retail gas stations and a retail restaurant. Its own brand of gas stations, Husky Gas has been around for more than a decade in the Canadian market. Husky Energy has teamed up with CAA, the Canadian Automobile Association, to collect CAA points on every fill up of gas. The other retail outlets at certain Husky gas stations include the convenience store Husky Market and the restaurant Husky House. Very well known in the Western Canadian Provinces, the Husky Energy brand is becoming a bigger player in the retail space. Husky Energy has also recently purchased Mohawk Gas and added their brand to its own. Consumers who visit a Mohawk Gas are now filling up their cars with a Husky Energy product and can collect CAA points along with their purchases. Currently Husky has more than 500 retail locations which make it the third largest retail oil and gas company in Canada.

Recent News with Husky Energy

Husky Energy follows other Alberta Oilsands companies in slowing its production in the Alberta oilsands for 2009. Husky Energy has decreased its investment from $300 million in 2008 to $65 million for 2009. While this is a strategic move in the current low US oil price environment, Husky Energy has not commented on whether it is pulling out of the Alberta oilsands market. Husky did say they are continuing with the Sunrise oil sands project, located about 60 kms northeast of Ft. McMurray, Alberta. BP and Husky expect costs to continue come down in the Alberta Oilsands. The Sunrise project is at the pre-engineering stage where its optimal design is being assessed. Other companies that have announced slowdowns in 2009 include Royal Dutch Shell PLC, Statoil ASA, ConocoPhillips, Petro-Canada and Suncor Energy Inc.

US $40 Oil per barrel and the Alberta Oilsands

US $40 Oil price per barrel – what does this mean for Alberta Oilsands

When US $40 oil price per barrel hits the world economy it means that there are more uncertain times to come for the Alberta Oilsands. A gauge for the strength of the US economy, the $40 per barrel price of oil in the US is signalling to the world that we are still in the midst of uncertainty. The January price per barrel of oil was in the mid $30 US and our current level is only slightly better. To the Alberta Oilsands that is still not a strong enough signal for players to make bold investments in new projects. I think what the big players are looking for is a stable US oil price at $50 per barrel or perhaps $60 per barrel. Not $40 per barrel of oil because at this price all projects related to the Alberta Oilsands is just marginally profitable. With an overhanging financial crisis, marginal projects are better put off than to be started. The direction of the market will tell Alberta Oilsands companies what they should do.

US Recession and Alberta Oilsands

The price of $40 US oil per barrel has been watched closely along with the US stock markets. The ups and downs of the Dow Jones Industrial Average has been a common pastime with viewers around the world. Especially with the slide of the DJIA mirroring the slide in the $40 US oil price per barrel and the fortunes of the Alberta oilsands. What is happening in the US with the continuous layoffs in the thousands from company’s such as Lowe’s, Home Depot, Walmart, and J.C. Penney just to name a few of the bell weather companies. The price of oil in the US has fallen to record lows and the price of the stock market is also at record lows. Is there a link between the price of oil and the US stock market? Will the US Recession lead to a slowdown in the production in the Alberta Oilsands as well. While the questions remain unanswered, the big players are on a wait-and-see approach to investing in the Alberta Oilsands. We will wait and see what happens before we take a bigger position in our Alberta Oilsands investments.

OPEC supply and Alberta Oilsands

OPEC or the consortium of Middle Eastern oil companies which stands for Oil and Petroleum Exporting Countries has long been the major player in deciding oil prices. A signal from OPEC regarding their supply usually signals to the world the direction of what oil prices should go. However recently OPEC has cut supply signalling the oil price per barrel to rise but the price has not done so. This cut is confirmed by the Energy Information Agency which reported a drop in inventories of US Crude. What can Alberta Oilsands companies do when even OPEC has no power to control the price of oil. Alberta Oilsands is the second largest supply of oil after Saudi Arabia, a member of OPEC, and has the worlds largest proven reserves even greater than the middle east. However Alberta Oilsands reserves are only proven if the price of oil remains above US $40 per barrel as this is the lower limit of the cost it would require to convert the oilsands to viable oil production. OPEC’s cut in supply should affect world oil prices in a more direct manner but in today’s uncertain economic environment, consumer confidence is a bigger key in unravelling the price of oil.

Low $30 Oil and the effects on the Alberta Oilsands

Why is oil at US $30 and what effects will it have on Alberta Oilsands

It is Feb. 12 and US oil prices have settled at US $33.98 a barrel. What has happened to the price of oil and can Alberta oilsands companies still remain profitable at this level? The price of oil fell 5.5% to settle at its lowest point in recent memory. We seen the US price of oil fall from $140 US a barrel in less than 6 months to $33 US a barrel. Can the Alberta oilsands companies survive this level of low oil prices? It has been the uncertainty of the future price of oil that concerns Alberta oilsands companies and not the current price levels we see in the market. It is in this unstable financial market that we the halt of further development of any new Alberta oil sands companies’ projects and a stand still in development. While many companies including large oilsands companies Syncrude Oil continue to be optimistic of the future, many smaller oilsands companies have had to file bankruptcy. What is a sustainable level of US oil prices a barrel and will there be a mass file for bankruptcy soon for this industry?

Large inventory of Oil means continued low US oil price per barrel

It is a straight supply and demand equation for why oil prices are low right now. The financial crisis can be blamed for this but so can the rapid rise in US Oil prices per barrel and the frenzied speculation we have seen for investing in anything related to the Alberta oil sands. Currently we have a glut in demand leading to a stockpiling and buildup of inventory in the US and the world. We frankly have record levels of inventory of oil meaning that the US oil price per barrel remains low. Until this glut is consumed and demand for oil resumes, we will continue to experience record low levels for US oil prices. It is hard to imagine a situation like this since we have been so accustomed to the opposite. The demand for oil has been so robust leading to the quick and rapid development of the Alberta Oilsands. The Alberta oil sands represents a significant source of Oil and is only second to Saudi Arabia. However, with the current glut and oversupply we are seeing the slowdown of massive proportions. In the US we expect to continue to see a glut in demand as unemployment data continues to be negative and the forecast the same for the next few months. More and more people will choose to conserve and thus the US oil price per barrel will be at $30 or even lower to come.

Can global demand for oil shrink in 2009

Aside from the question of a glut of demand for oil in the US is the bigger question of the world demand. What is going to be the demand for Oil from the world in 2009 and 2010? There are many reports from well known International Agencies reporting that the demand for oil in the world will shrink to levels in the early 80’s. This means that we may see a low US oil price per barrel for some time to come. What will the global demand for oil mean to Alberta oilsands developments? It is a hold and see approach for 2009 and possibly the first quarter of 2010 as major Alberta oilsands players are reacting to the numbers of global demand. If the demand for oil continues to shrink in 2009 then we will see a low level of economic development in Northern Alberta, Athabasca regions where development has been brisk for the last 5 years. While no one can see the future, it is the job of companies such as Shell, Syncrude, and Imperial Oil to forecast the demand and thus the development schedule of oilsands development. It is these large Alberta oilsands companies that can change their production and development schedule to closely match global demand.

Slower pace of development good for Alberta Oilsands

Alberta Oilsands will benefit from the slower pace

The slow down of the development in the Alberta Oilsands and Northern Alberta region will actually have a positive long term affect on the environment. The past few years have been a frenetic pace for Alberta oil sands companies and oilsands developers to quickly develop and buy up more land in Northern Alberta. The higher price of oil caused a euphoria in investment capital being poured into Alberta oilsands companies without any consequence to the environmental impact. The recent slowdown in development will actually benefit Fort McMurray and the Athabasca Region as the region gets some time and breathing room. Some much needed time to take a look at what can be done to develop the valuable resources that the Alberta oilsands offers and to positively impact the communities that they operate in. Yes, the slower pace of development is actually a blessing in disguise and will give Alberta Oilsands companies time to develop a long term strategic plan that will take into account the communities and the environment in relation to the profit potential.

Developing an Environmental plan for the Alberta Oilsands

Many environmentalists and governmental agencies have criticized the Alberta Oilsands companies in their lack of a solid plan for the development of the Alberta oil sands region. This lack of a plan will not only have long term negative consequences to the environment but also affect all the surrounding people living in the communities of Northern Alberta and the Athabasca region and Fort McMurray. A lack of a solid plan is a direct correlation to a lack of responsibility and accountability for the environment that these Alberta Oilsands companies have. It is unacceptable to not have a viable environmental plan for the Alberta Oilsands and many environmentalists around the world are lobbying their governments to take actions to prevent any further damage to the Northern Alberta and Athabasca regions. It is important to immediately address the long term consequences of developing the Alberta tarsands and making sure that the environmental impact is minimized. Having a solid environmental plan for the Alberta oil sands will be a first step in reaching this shared goal and the Alberta Government is also in agreement with this position.

Alberta Oilsands and the Aboriginal Communities

Many Aboriginal Communities, including the Metis Settlement, are affected by the development activities of the Alberta Oilsands. The concerns for health and the destruction of their lands is a primary objective that the Aboriginal communities including Chief Allan Adam of the Athabasca Chipewyan First Nation is striving so hard to achieve. As so many Aboriginal Communities will be affected by the Alberta oil sands companies, it is vital that the rights and concerns of these people be dealt with immediately. We cannot build first and make a plan later for the environmental impact. This is not acceptable and will be a major obstacle for the further rapid development of many Alberta oilsands projects. On the other hand, there has been some good news regarding the environmental plan for the Alberta oilsands and the Aboriginal Communities. There has been a lot of positive development towards drafting of solid plans to protect the environment from the rapid development happening in the Athabasca region. However, as with most talk, people want to see action and it is this action that will help the Aboriginal Communities.

Tainted Alberta Oilsands and Environmental impact

The current Alberta Oilsands environmental problem

A recent study stated that Alberta Oilsands production is releasing four billion litres of tainted water into Alberta and surrounding regions including Saskatchewan, Northwest Territories, and the Athabasca River. This report states that it’s a matter of fact that the Alberta Oilsands poses a significant environtmental problem to the areas affected and to the global ecosystem. Alberta Oilsands or Tarsands produces leaks called tarsand tailings which are held in tarsand ponds. The environmental problem is that some scientists and environmentalist believe that there is no way to control the leakage and the negative effects of this Tarsand leakage will destroy the delicate ecosystem including fish, animal and plant life. The Alberta Oilsands poses an increasing environmental problem which will worsen by five fold over the next ten years as more projects are started. It is for this reason that the Alberta Government and Alberta Oilsands companies have invested heavily into studying the environmental impact of the oilsand and ensuring that the public is well educated on its findings. Part of the role of the Alberta Government and Alberta Oil sands companies is to dispel myths and lies about the environmental impact.

Tailing ponds and Alberta tarsands

A tailing pond is created as a result of how Alberta tarsands are produced. A process that uses hotwater to separate the Alberta oil from the sand leaves behind the tailing pond. The tailing pond holds contaminated material from the original product and can continue to be contaminated for decades to come. Alberta Tarsands tailings ponds have been continuously examined to assess its environmental impact on humans, wildlife, and vegetation. It is believed that Alberta tarsands tailing ponds poses significant threat to the surrounding area. Studies on birds have found increased mortality rates. Birds that live in the area or migratory birds that come to the area have been tested and negative effects have been noticed in their expected life. Another significant impact is to plant life and studies have been done on germination. These studies have found that lower seedling weights have been a result. While Alberta Oil Sands companies have been increasing their ability to control the leakage of tailing ponds through use of better technology, some scientists still believe that we are a long way away from having no environmental impact on the environment. It is impossible to stop tailing ponds as a result of the Alberta tarsands production to leak.

Differing view of environmental impact of Alberta Oilsands

Differing views of the environmental impact of the Alberta Oilsands is a matter of where you are standing and what effect you are testing for. A scientist for the Alberta’s Environmental Department said the reports are misleading on the tailing ponds. While tailing ponds do hold waste from Alberta Oilsands production, this waste is overstated and the environmental impact is not as significant. The tarsands waste is going into deep aquifiers that are already naturally contaminated by the geology of the Alberta Oilsands. Another false myth that these scientists are trying to dispel is that tarsands leakage is a big environmental problem. This is a myth and there has not been a serious run off of toxic tailing ponds into surrounding regions. The scientists are confident that they can prevent any serious contamination of groundwater and ecosystems. Of course problems will existing with tainted Alberta oilsands but with continuous research and action taken by the Alberta Government and Oil sands companies, any siginificant environmental impact should be avoided.

Alberta Climate Change and the Premier Ed Stelmach Government

Alberta Climate Change

Alberta climate change is a big topic for Premier Ed Stelmach and the Alberta Government. With so much at stake in Alberta and the Canadian economy, it is a top priority for the Alberta Government to keep on top of this issue. At risk are the economic benefits to Alberta for the next few decades with the Alberta Oilsands being of such importance to the Alberta economy. Not only will being proactive in making any suggestions for Alberta climate change be vital but the Alberta Government will need to show that they are keeping the large oil companies accountable for their effects on the environment. With the election of President Barack Obama, Premier Stelmach is sending a clear signal that the Alberta Government is concerned and would like to play a key role in any decisions made about climate change. They don’t want to be blindsided like the last time when Prime Minister Jean Chretien made major changes in negotiating a climate change pact without first consulting the other provinces of Canada.

Green house gas emissions and the Alberta Government

Greenhouse gas emissions are a major concern for the world as it pertains to Alberta climate change which has a significant impact on world climate. The Alberta Government has been playing a key role in evaluating green house gas emissions and the effect that the Alberta Oil Sands has had on the environment. The main issue here is that Alberta’s energy sector has produced a large amount of greenhouse gas emissions, an amount that far exceeds their actual size. This effect will have a huge detrimental impact on what the public perceives as global warming, the premature melting of the polar ice caps, and other such effects as a result of green house gas emissions. The Alberta Government and more specifically, Premier Ed Stelmach, wants Prime Minister Harper to voice Alberta’s concerns for having a larger voice in any negotiations relating to Alberta climate change. This is of particular concern now that President Barack Obama is going to be taking a more serious look at the effects of green house gas emissions. Since the Alberta Oil Sands plays such a huge part in Canada’s economy and the world economy, it only makes sense to have the Alberta Government more closely involved in all the negotiations relating to green house gases.

Alberta Oil Sands and the US Economy

What the Alberta Oil Sands represents to the US Economy is a stable source of Oil. Despite President Barack Obama’s insistence on improving the US economy’s reliance on renewable resources, it is indisputable that Alberta Oil and specifically Alberta Oil Sands oil will continue to play a vital role for decades to come. Canada has the closest source of stable and economical Alberta oil for the US economy. Not only will Alberta Oil Sands continue to supply the US economy with an abundant supply of oil but Canada will continue to ensure that they reduce the cost of producing it. With recent improvements in converting Alberta Oil Sands into useable oil, the cost to produce has reached an economical $30 a barrel. It is the hopes of the Alberta oil companies that they can further reduce this figure so that they can remain profitable and provide the world with a source of inexpensive oil. Of course all this has to also be green house gas friendly and make a positive impact on the economies that are affected.

Global Economic Crunch Will Temporarily Slow Down the Alberta Oilsands Boom – What Does This Mean To You?

Alberta Oilsands in Trouble?

There have been recent reports that many Alberta oilsands projects will be either delayed or cancelled this year. From the Calgary Herald to the Edmonton Sun and from the Financial Post to the Globe and Mail, the latter part of 2008 and for the most part the beginning of 2009 has brought about negative publicity and news regarding the growth (or lack there) of the Oilsands projects in Alberta. Obviously, the slowdown in the development of the Alberta oilsands will impact significantly employment in the northern part of Alberta, namely Fort McMurray, but also will have residual impact on the economy in the bustling engines of Edmonton and Calgary. The trickle down effect will be a stabilization of jobs and maybe an slight increase in unemployment which will make a dent into the Edmonton real estate market as well as the once fire hot Calgary property markets. According to the Canadian Association of Petroleum Producers, also known as CAPP, the Alberta oilsands northeast of Edmonton will likely reduce the barrels of production until the economic gloom and doom has ended. CAPP also expects that the spending in the Edmonton and Calgary oilsands projects in Alberta will be cut significantly by about twenty five per cent over 2009 from a projected estimate of $20 billion to $16 billion. Other projcts such as the East Coast Offshore projects in the Alberta oilsands indicate some troubling times ahead as well, cutting spending from $50 billion in 2008 down to $43 billion in 2009. Leading Alberta oilsands exploration, gas and oil companies have also slashed budgets and spending during the 2009 fiscal year during these times of economic uncertainty. Petro-Canada, Nexen, Canadian Natural Resources as well as Suncor and EnCana Corp have already announced budget slashes as the oil prices per barrel have landed between the low $30 to mid $40 US range.

Survival for the Edmonton/Calgary Oil Sands

It is widely speculated that the break even point for new Alberta oilsands projects is a target of $44 US per barrel, while the break even point of existing Edmonton oilsands projects is in the low $30 US per barrel, a price that oil has already touched on several times in the past quarter. So are the Alberta oilsands projects in trouble and will existing Edmonton and Calgary economies remain more stable than the rest of Canada through 2009? Well, with the recent headline news that BA Energy Inc which is the developer of the Heartland Upgrader $4 billion project near Edmonton real estate, there is no safe place in the world during this global economic crisis. With cash flow shortages, tighter credit laws and an angst against possibly losing money, the Alberta oilsands new developments have been temporary put on hold until the economic environment improves. The most recent Financial Post headline news story from January 15th explains that spending on the oil sands in Alberta may actually drop more than 50% compared to the spending during 2008. A reduction in oil and natural gas prices as well as the lower demand for these commodities have driven many Alberta oil sand projects off the table for now.

How Does The Drop in Oil/Gas Affect You in Alberta?

There are many things that will happen in the next year and during the last two quarters of 2008 and the first month of 2009, a hefty drop in oil and gas prices have basically stalled the once booming Alberta economy. Much of the economy is based on oil and gas in Alberta, and with the recent decade worth of boom times, both Edmonton and Calgary real estate markets saw substantial increases in value. Property prices skyrocketed while wages also increased in order to keep up with the cost of living, and therefore, everything was offset. However, during the recent drop in oil and gas prices, employment has staggered and layoffs have started. What this brings is a drop in wages and jobs available in the Alberta oil sands projects and other industries that depend on the oilsands in order to survive. With unemployment rising (the most recent tally is a loss of 16,000 jobs in Alberta in December), less people can afford property and to buy their homes. The most recent drop in the Edmonton real estate market (both pre-sale and resale homes) as well as the once hot Calgary property market and everything in between in Fort Saskatchewan and Red Deer as well as Fort McMurray is a cause for concern for those who purchased at the peak of the market. It is widely speculated that both the Calgary and Edmonton real estate markets have crashed about 17% from its peak already within one year. Spending has also decreased as more people are saving their money in the bank. With deflation a thing creeping into the Alberta economy, many people and consumers are waiting for the best deal that may come next month and postpone spending their hard earned cash until they spot the best deal in town. What this does is it stagnates the economy and makes things even worse. All of this is because of the most recent boom that happened too quickly and the sudden drop in oil and gas prices around the world. The Alberta oilsands delays and cancellations will have a profound effect on the Alberta economy in 2009 and with the recent royalties imposed on the gas and oil companies, the recovery period may take a while longer.

Our Perspective on the Calgary and Edmonton Real Estate Bust and the Oilsands Future

Headlines is headline news. It’s main purpose is to sell more articles, magazines and newspapers. With so much negative news about the Alberta oilsands, we take things in perspective. The Alberta oilsands has been the top discovery of commodities, oil and gas in recent memory and with it came an incredible boom time for Albertans. Everyone enjoyed something from the oilsands projects in Alberta, whether it be blue collar or white collar jobs working in Fort McMurray, or real estate investors who saw their properties double in value in less than a year or even to people living outside of the oil sands areas like Edmonton and Calgary that had to build infrastructure to house the many people moving into the province through in-migration. Having the lowest unemployment rate in Canada (close to the low 3% at one time and now only creeping up over 4% .. still the lowest in Canada), Alberta has seen a boom time that has not been rivaled by any other province, not even close. With the sudden increase in housing prices throughout Edmonton real estate as well as the Calgary marketplace, people forgot to due their due diligence and ran with the dream of making a big fortune by flipping or buying/selling huge numbers of properties. Although the economic outlook is grim and the demand for Alberta oil and gas has diminished, Alberta has a great thing going for it. With the world’s largest deposits of investable oil, the oilsands of Alberta will be key to the turnaround of Canada’s economy. Enjoying the highest GDP per capita and a growing population, the Alberta oilsands will become the economic engine for Canada in not too distant future. As the US has embraced self reliance on energy, oil and gas, Canadians have to agree that the Alberta oilsands near Edmonton house more than enough oil to keep the country going for decades to come. Yes, there is a lot of money being pumped into alternative energy sources in North America and in Europe, but the two developing nations in India and China will continue growing at an astronomical pace and their demand for oil will certainly skyrocket. Each with a population greater than 1 billion (yes, that is more than North America and Europe combined in one single country) and with a 2009 GDP growth estimated at 5% and 7.5% respectively (revised this month in January 2009), India and China have had talks with the Alberta oilsands to make sure that they can claim a stake in the oil and gas in the future. The demand for oil has slowed down, but it is temporary. So instead of a moderation in spending and oil production in the Alberta oilsands through to 2020 (and a stabilization of housing prices through that period in the Calgary and Edmonton real estate markets), we now see a period of delays and cancellations of oilsand projects in Alberta (and a subsequent drop in Edmonton and Calgary housing prices). Once the demand for oil and gas increases again, we predict another huge boom that will be triggered by an onslaught of new Alberta oil sands projects starting and existing oilsands projects working at full capacity. Employment will again skyrocket, followed by jobs, minimum wages, spending and of course, another increase in the housing prices of both Edmonton and Calgary and everywhere in between. It is not yet known how long this economic crisis will last, but rest assured, another boom time will be coming maybe in a year, 5 years or 10 years. Hold tight, enjoy life and stop speculating, because speculators will never will all the time. True investors always win in the end.

Welcome to the Alberta Investment Blog - A Resource for Edmonton & Calgary Real Estate Markets, Oil & Gas, Economy and Other News

Thank you for visiting the Invest in Edmonton Real Estate Blog.

Here you will find information about the real estate market in Edmonton and its surrounding communities in addition to details about the state of the market in Alberta. Fueled by the growth in Fort McMurray and the oil sands of Alberta, Edmonton is growing at a fast pace and real estate has boomed. From homes to master-planned communities and from real estate properties to condominium towers, Edmonton Alberta is the place to be when it comes to jobs, entertainment and real estate investments.

Read further to learn more about the various Edmonton real estate investing portunities right now with 4AM Properties Ltd. From joint venture deals to lending money, 4AM has a right fit for any investor who wants to get a great return on their investments.

Welcome again to the Edmonton Real Estate Investing Blog 2009.