Category: Economic

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Economic Ft Mac Politics

Suncor Senior Vice President States Oilsands Belt Tightening is Necessary

Bruno Francouer, the Suncor Senior Vice President of Operations and the Regional Recreation Corporation chairman, had some things to say during the February 25 Fort McMurray Construction Association 2016 Summit, including harsh criticism as well as praise. Francouer praised local contractors in the Wood Buffalo area and offered them mild encouragement, but criticized the municipality and encouraged more belt tightening. During the speech the executive had some very pointed remarks about the municipal taxes that the industry faced and pointed out that companies in the oilsands have cut costs while the municipality spending has increased at the same time. Instead Bruno stated that the municipality should be engaged in the same belt tightening and cost cutting that oilsands companies are engaged in, then explained “And that’s not what’s happening. Year after year it keeps going up.”

The Suncor Senior Vice President shared his belief that the expected belt tightening and cost cutting at the municipal level should be used to help offset lower industry taxes. One fact that can not be denied is that oil prices are very low right now, and that has forced many oilsands companies to cut positions and lower capital spending. In spite of the current price of oil and the still struggling economy many believe that the municipality continues to spend at previous levels when oil prices were at record highs. The oil industry faces rising municipal taxes at a time when they can least afford it and industry leaders like Francouer believe that the municipality should do their part to keep costs and taxes down during this difficult time.

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Economic Ft Mac

COS Takeover Deal can be Closed by Suncor After Sufficient Support Received

After months of heated comments and accusations on both sides the COS takeover deal can be closed by Suncor after the energy company received sufficient support for the deal. For months now Suncor Energy has been urgently asking Cos shareholders to tender the shares that they own so that Suncor could take over Canadian Oil Sands. Suncor has finally received enough support and gained enough COS shares to close their takeover in spite of the fact that some COS executives and board members were against the takeover. Suncor recently made an announcement that they had support from 84.2% of COS shareholders and they control more than two thirds of the COS shares out there. The company gave a statement which read that it“Is in a position to ensure the successful outcome of the shareholder vote in respect of this subsequent acquisition transaction. Once this transaction is completed, all COS shares that remain outstanding will be acquired for the same consideration offered in the offer.”

The COS takeover bid by Suncor started last October. Suncor made an announcement that they were offering a $4.2 billion bid for Canadian Oil Sands. This bid offer was rejected by COS and company executives argued that Suncor made an offer which was not sufficient. COS shareholders were urged to reject the deal by the company executives and top shareholders. In January COS management agreed that they would accept an amended deal that was offered. Early in February Suncor had acquired 73% of the COS shares.

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Economic Ft Mac Politics

Wood Buffalo Council Policy Proposal Against Fly In Fly Out Arrangements

A policy proposal that was recently asked for by Wood Buffalo council members involved fly in fly out arrangements, and the council meeting went fairly quickly even though this proposal was just one of many items on the agenda. The audit committee proposal was given to the council requesting that a policy be implemented that prohibits fly in fly out accommodations for people who are municipal employees. This policy was one of the recommendations made as a result of the 2014 KPMG audit. A motion on December 1, 2015 to implement a fly in fly out policy was defeated, and the new policy would prohibit this type of activity. Chief Legislative Officer David LeFlar did caution that the council did not have the authority to legally prohibit commuting by employees but passing the policy motion would ensure that the municipality would not be required to cover the expense of these trips.

The no fly in fly out policy proposal in front of the Wood Buffalo council does have a provision to cover extenuating circumstances according to Councilor Tyran Ault. If an out of town expert is needed by the municipality and a commute was necessary to hire the expert then the council could bring up the specific issue for a vote. Councilor Allan Vinni discussed th new policy and said stated “I think that that inconvenience is more than outweighed by the message that we need to send to the citizens of this region that we’re about employing and working with people who live here.” The motion passed unanimously.

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Economic Ft Mac Politics

Keyano College Faculty Survey Shows Dismal Views

A new Keyano College faculty survey shows that many faculty members hold dismal views of the current administration. The Alberta Colleges and Institutes Faculties Association climate survey conducted last year showed that Keyano staff had a lower opinion about the school on almost every level last year. The study showed that 85% of the staff believed that there was a lack of open communication from administrators to faculty members, and that 78% believed that the day to day challenges that instructors faced were not understood by senior administrative staff. The survey involved 91 college faculty members and they indicate the mood of faculty members at the institution after staff and budget cuts in the last few years. Instructors and faculty association members have not spoken about how they feel about the cuts and cutbacks, saying that school policies prohibit them from commenting. Keyano administrators have denied that this is the case. The study showed that faculty members had the lowest view of Keyano College tat they have had in over a decade.

After the Keyano College faculty survey results were released Keyano College spokesperson Matthew Harris released an email that stated “We are aware of the faculty climate survey. Our interim President looks forward to meeting with our Faculty Association to discuss any and all concerns. It’s been a difficult time for the College over the last year, and all areas have felt the strain of the changed economy of the region. It’s important for all of us to work together so that we can meet these challenges. Part of that will include understanding how faculty and staff feel about the organization, identifying shortcomings, and addressing those shortcomings so we can bridge the gap and focus on moving forward together.”

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Alberta Economic Ft Mac

Many Drones Grounded by Oil Companies in Cost Cutting Moves

Before oil prices went plummeting drones were seeing increasing popularity and use in the oilsands, but recent cost cutting due to continued low oil prices and an economy that is still struggling to recover seems to have grounded many of the drones intended to be used in the oilsands. Just a few years ago entrepreneurs were outdoing each other trying to attract energy and pipeline companies who operated in the oilsands but that is no longer the case. The ability to experiment with emerging and new technologies has been compromised by numerous canceled projects, capital spending reductions, layoffs, and billions in lost revenue because of the sharp drop in the price of oil. Workers are also hesitant to support drone and automation use out of fear that they will eventually be replaced by this technology in the future.

The current economy and the cost cutting that has grounded many of the oilsands drones could be seen as a benefit though. ING Robotic Aviation chief operating officer Jeremy Byatt explained that “You would think the low cost of oil would be a payday for innovation because our industry clearly reduces costs and risks. You would think the low cost of oil would brighten things up in terms of financing innovation because these clearly reduce costs and risks. That simply isn’t happening these days.” Centovus Energy spokesperson Sonja Franklin said “We’re not doing as much surveys as we were before based on activities and spending. We would like to use more UAVs more often, but we also want to reduce our spending right now.”

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Economic Entertainment Ft Mac

Keyano College Affair of the Arts Tickets are Now Available

If you are an art lover or a patron of the arts then you may be excited to know that the Keyano College Affair of the Arts tickets are now available. The event will take place on March 12, 2016 and it will be hosted by the Keyano Theatre and Arts Centre. This is the seventh time that an art event like this has been hosted by the Centre. Those who attend will be treated to a performance by Colin Mochrie and Debra McGrath, a married couple who are both Canadian actors. There will also be a wine tasting for those who enjoy trying different wines, food which will be catered by Chartwells, and a local young artist will also give a performance.

The wine tasting at the Keyano College Affair of the Arts is an event that is being co organized with local wine club the Fort McMurray Opimian Society. Those who purchase tickets for the event will receive 5 tastings an this is included in the gala ticket price. The local artist who will be showcased during a performance will be under 19 years old. Keyano Theatre and Arts Centre marketing coordinator stated “We had sent out a call to musicians, where local youth artists can come and submit their application, and from that we were going to choose an artist.” The competition ended last week. The goal of the event is to raise money for art programs. In order to attend you must eb at least 18 years old, and tickets cost $200 per ticket. Anyone interested in a ticket can purchase one online or they can call the Centre box office at 780-791-4990.