Category: Economic

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Economic Ft Mac

Ask an Expert Launching Soon, Part of Wood Buffalo Accelerator Program

The Wood Buffalo Accelerator program is launching the Ask an Expert program very soon, and the goal is to provide one on one expert access to entrepreneurs who need this. The program offers one on one and phone access to experts in a variety of fields and industries so that entrepreneurs can find the support, assistance, and answers that they need to be successful in the ventures that they undertake. A municipality statement from Business Development Officer Natasha Hartson stated “Entrepreneurs who register for a session will be given the opportunity to speak with the professional one-on-one for 30 minutes. These sessions are available in-person or over the phone. We encourage entrepreneurs to come prepared with questions and related documentation.”

The Ask an Expert program launch, part of the Wood Buffalo Accelerator program, will begin in just a couple of days, occurring on March 23, 2016. The very first expert for the program will be Fort McMurray accountant Staci Clevett. This expert will offer advice, guidance, and answers on tax and other financial issues that entrepreneurs may face. Interested entrepreneurs can register for the program at choosewoodbuffalo.ca and the program events will be held at the Powder Drive Timberlea office of the municipality. The program is designed to offer support, and answer questions that entrepreneurs may have about starting or creating a business in the area. When interested individuals have the answers that they need they are more likely to be successful if they continue in their efforts. New start ups and fresh businesses in Wood Buffalo help the economy and the population in the area so everybody wins when an entrepreneur succeeds.

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Alberta Economic Ft Mac

2015 Housing Slump in Wood Buffalo Continues in 2016

The 2015 Wood Buffalo housing slump is continuing in 2016 according to the recent data release by Fort McMurray Realtors. Housing prices and new home construction continues to be low just like it was a year ago, and prices now are lower than they were in 2015 at the same time. In February 2016 there were 29 single family homes sold, in February 2915 there were 32. The average price for these home in 2015 was 9.5% higher than the average 2016 price of $675,424. There were significantly more condo sales in 2016 at 11 than the 2015 monthly sales total of 4. The average condo sales price for 2016 was around 40% less than it was for 2015 though. Last year during this period there were 21 housing projects started, but in 2016 only 4 housing projects were started in the Wood Buffalo area.

What does the continued housing slump mean for Wood Buffalo homeowners? Right now is not an ideal time to sell, although the lower home values and prices could make it a good time to buy if you intend to keep the property long term. Selling a home now could mean losing out on a higher price for the residence, and some homeowners may find themselves underwater because of the lower values for property right now. A homeowner in Wood Buffalo who purchased their home right before the housing slump started, when prices were still very high, could find that they now owe more than the residence is currently worth. As the economy picks back up again in the future this should change though because housing values will increase again as well.

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Alberta Economic Ft Mac Politics

Oilsands Region Unemployment Rate Jumps to 9.3%

According to data from Statistics Canada the unemployment rate in the oilsands region near Wood Buffalo and Cold Lake has jumped up to 9.3%, showing a 0.3% increase over the rate in January of 2016 and causing even more stress and worry for residents and companies who live or work in the region. During the same period one year ago the rate of unemployment in the area is one third higher now than it was then. Around 1,000 people in the region lost jobs in the last month, with 1,500 full time jobs disappearing and only 500 part time jobs being created. The 9.3% unemployment rate is the highest in the Alberta province and it shows how falling oil prices have impacted an area which depends in part on the natural resource industry to thrive.

A national average unemployment rate of between 702% and 7.3%, so the oilsands region has a rate that is around a full 2% higher than the national average. According to a statement released by the Wildrose party the higher rate of unemployment is a direct “indictment of NDP policies. The NDP needs to show it’s taking job loss numbers seriously by accepting job-creation solutions from across the aisle and scrapping its failed jobs subsidy program.” It is no secret that the oilsands region has been impacted by the slowing economy and falling oil prices more than many other areas, and charitable organizations and food banks in the region have seen an increase in need and demand as a result.

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Alberta Economic Ft Mac

Approval for Oilsands Project Sought by Imperial Oil

Approval for an oilsands project is being sought by Imperial Oil, and the projected is estimated to be valued at around $2 billion. The project will be located in northeastern Alberta on the lease area that the company currently has in the Cold Lake region. Imperial Oil has already filed the regulatory paperwork concerning the Cold Lake Expansion project that is required by the Alberta Energy Regulator. That is no guarantee of success though and the company could still be denied approval for the project. Lisa Schmidt, the company spokesperson for Imperial Oil, stated “This is a preliminary and very important step in the regulatory process. Overall, we take a long-term approach to resource development, and an ultimate investment decision will be based on a variety of factors including regulatory approvals, market conditions, and economic competitiveness.”

Imperial Oil is a company that is majority owned by ExxonMobil Corp., a U.S. Energy giant that is seeking to expand their oilsands project when most other companies in the natural resource industry are scaling back or even canceling new projects in the area due to declining oil prices in the last couple of years. If approved the new oilsands project would tap the resources in the Grand Rapids formation, estimated to be around 550 million barrels of possible resources. Craig Copeland, the mayor for Cold Lake, was excited about the prospect of approval for the new project. Copeland said “For us, it’s very exciting news for our community. We desperately need good news right now, so I’m really happy to hear that Imperial Oil’s going to move forward.”

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Alberta Economic Ft Mac

Several Senior City Managers in the Regional Municipality of Wood Buffalo Let Go

Several senior city managers in the Regional Municipality of Wood Buffalo have been let go, including Brian Moore who was the executive director of planning and regional development, Kola Oladimeji who was director of financial services, Emdad Haque who was director of engineering, and Bradley Evanson who was director of planning and development. Confirmation that all four senior city managers are no longer employed by the municipality was made but no further comment was given because the issue is a personnel matter. According to Coun. Phil Meagher “Obviously [Chief Administrative Officer Marcel Ulliac] has made some decisions and we have to live with them.” Since there were four senior city managers who were let go it is doubtful that the terminations were because of misconduct or other cause, instead the managers may have been let go because of economic reasons.

The termination of the four senior city managers by the Regional Municipality of Wood Buffalo is a sign that there is still an economic struggle going on in the region. Wood Buffalo depends in a large part on the oil industry and the oil companies who operate in the nearby oilsands. With oil still at very low prices and oil companies cutting back on expenses and spending it is possible that the municipality is doing the same and trying to reduce costs when this can be done. There have not been any reports about whether the employees who are no longer employed received any severance or other benefits. Further details about the senior city managers being let go may become public in the next few weeks.

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Alberta Economic Ft Mac

Nexen Energy Announces Job Cuts, 120 Employees Laid Off

Nexen Energy has announced more job cuts and the company has laid off another 120 employees as the oil industry in Alberta tries to stay profitable and competitive with lower market prices and an economy that has not yet fully recovered. Nexen is not the only company who is scaling back and letting some employees go. Earlier last year Nexen cut around 400 jobs, 40 of these in Fort McMurray and Wood Buffalo, and then in November of 2015 the company laid off another 60 employees. The latest round of job cuts is just the last issue in a long line of problems that Nexen Energy has faced in the last few years. As the energy giant fights to stay competitive and cope with the current economy and oil market there may be even more job cuts announced in the future.

Nexen Energy spokesperson Brittney Price released a statement about the job cuts and other moves the company has made in the last year or so, stating “Given the current economic reality, we have made the difficult decision to reduce our workforce. These changes impact approximately 120 Canadian employees. We take these decisions seriously, and all impacted employees have been treated fairly and with respect.” An explosion at the hydrocracker at the Long Lake facility operated by Nexen in January has added to the company problems, and two workers were killed because of the explosion. There is still an investigation being conducted about the explosion but the Wood Buffalo RCMP have not found anything suspicious about the accident so far.