Category: Economic

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Economic Ft Mac Politics

Interim President for Keyano College is Ready to Face the Current Challenges the School Faces

Right now Keyano College is facing some financial struggles, and these are caused in part by a lower demand for classes and industry training due to the current economy. Interim president Tracy Edwards is prepared to face the challenges though. Edwards was named the interim president for the school after Kevin Nagel suddenly resigned from his position on the board a little more than a week ago. Edwards is confident that she has the skills and experience needed to turn things around in spite of all the budget cuts that Keyano College has seen in recent months. Tracy Edwards told the media that “I’ve done that a number of times. Particularly when I went to Lethbridge in 2005 (it was) very similar situation — lots of issues around finances. So I do have some experience coming into an environment like this. What people want during a time of turbulence is basically some stability, some vision and some hope. To be assured that the future is bright. Yes, it’s been a little bit rocky but we have a lot to look forward too. And working together, we can figure it out.”

According to Kara Flynn, the Keyano College board chair, the choice of interim president was an obvious one. Flynn also explained the situation by saying “Keyano is not immune to, unfortunately, the lower revenues that are being generated in this community through this time. So we’ve had to make some very difficult decisions as an organization.” The recent staff layoffs all involved support roles at the college.

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Alberta Economic Ft Mac

Cenovus Energy Announces Capital Spending Decrease, Cuts to Jobs and Dividends

Cenovus Energy recently announced that the company planned on a capital spending decrease as well as cuts to jobs and dividends as they struggle to stay competitive with low oil prices and an economy that is still struggling. The announcement by Cenovus made it clear that the oil company is still struggling to keep their share of the market and the cost cutting measures are an attempt to make the business leaner s that it is more competitive in the current environment. The capital spending decrease means that the company will spend between $1.2 billion and $1.3 billion, which is between $200 million and $300 million less than Cenovus Energy planned to spend. There are also job cuts and cuts to dividends planned as well so that Cenovus can weather the current economic downturn and very low market prices for oil.

Cenovus Energy made the announcement about the capital spending decrease and the cuts which will be made, but the exact number of jobs affected and the extent of the dividend cuts are still under wraps. Last year there was a 24 percent reduction in the staff employed by the company but this move was not enough. The first quarter dividend for Cenovus Energy stock was reduced by 69% and this is just the start. If the business can not stay competitive while the economy is poor then it may not be around to see the economic rebound which will happen sooner or later. A statement from Cenovus Energy explained “The company is undertaking a thorough evaluation of all its staffing costs to align total compensation with the current business environment. This includes reassessing benefits, allowances and contractor rates.”

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Alberta Economic Ft Mac

Is Fort McMurray Ready for Uber? Some Councillors and Cab Drivers Not Convinced!

Is Fort McMurray prepared for Uber, a ride sharing program and app that was recently approved in Edmonton? Some councillors have doubts that the area is fully prepared after there were protests by cab drivers and other transportation professionals in other larger Canadian cities. According to Councillor Tyran Ault, who has a place on the Land, Planning and Transportation Committee, “Our preparedness for incoming ride-sharing programs has definitely come up during meetings. Edmonton has made some great steps forward in terms of this issue.” Uber drivers are private individuals who own a vehicle that is a 2010 or newer, and they must have a clean driving record. Unlike cab drivers Uber drivers do not have to pay costly fees for licensing and registration, and this has some cab drivers upset and angry.

According to one cab driver named Sam, who did not want to disclose his last name, Uber could cost cab drivers in Fort McMurray business. Sam explained that he makes a personal connection with passengers, giving out his priate number and business card so passengers can call him again when they need a ride. Sam told Today that “They know me and I get to know them. I’ve made friends this way. The other drivers aren’t doing so well these days. I’m not doing as good as I used to, but I still have some people still asking me for my service.” Sam also talked about Uber coming to Fort McMurray, saying “It’s probably going to happen. I can picture a guy at camp making extra money driving guys from site into town. There’s a lot of money for Uber here, so I hope I’m remembered.”

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Economic Ft Mac

Budget Cuts at Least Partially Responsible for Resignation of Keyano College President Kevin Nagel

The Keyano College president and CEO, Kevin Nagel, has resigned and the resignation is at least in part over budget cuts and financial struggles. Nagel took the position of president at the college in 2011, and the decision to resign was made after careful consideration. The Board of Governors received Nagel’s resignation last Monday. A press release by Kara Flynn, the board chair, stated “The Board of Governors would like to thank Dr. Nagel for his contributions to the College and the wider region. (We) wish Dr. Nagel well in his future endeavours.” The college has seen declining revenues as oil prices have dropped in recent years, because industry training services n longer have the same demand that they did just a few years ago and fewer people training for lucrative oil industry jobs.

Forecasts for revenue at Keyano College have declined by 20% over the last two years. During a recent Friday Board of Governors meeting the school discussed goals and set a spending reduction. The goal is to cut spending back to $68 million instead of the amount of $81 million that was spent last year. Nagel quickly came to the defense of the financial approach that the college has taken when he gave an interview to Today, an interview that occurred just a few days before Nagel tendered his resignation. In the middle of 2015 Keyano College let 21 staff go and cut out 12 programs that were previously offered because of the struggling economy and low oil prices, and further cuts have been needed so the college can stay financially stable.

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Economic Ft Mac

RMWB Council Gives Approval for Winter Road Repairs of $2.5 Million

The RMWB council has given approval for winter road repairs, authorizing $2.5 million for this task. When the council recently met on a Tuesday night they covered many different things. The council spent around an hour going over 2016 capital budget amendments and approving these changes. During this time council members also simplified the system in place for rural water and sewer program contribution collections from landowners. The meeting also included Toque Tuesday, with Mayor Blake wearing a black toque before the council meeting started to raise awareness of the special event to provide long term solutions for the homeless issues that the region has faced recently. The Centre of Hope provided the toques to the council to raise awareness of the issue.

One of the amendments approved by the RMWB council was the winter road repairs which are needed. The administration had recommended that the amendments include new funding in the amount of $2.5 million for Fort Chipewyan Winter Road infrastructure projects. This amendment as a source of questions, debate, and discussion by the council. Other amendments that were examined included downsizing a planned expansion for the recycling facility, and the project cancellation to install some new computer servers. The $2.5 million approved by the RMWB will go towards culvert repair and replacement on the winter road. Two culverts are currently in need of repairs, and one culvert will be replaced with a single span bridge. The repairs and replacements will ensure that water can pass under the roadway and keep the winter road in better condition.

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Alberta Economic Ft Mac

Close to 73% of Canadian Oil Sands Shares have Been Acquired by Suncor

Suncor has made an announcement that the company has acquired almost 73% of the Canadian Oil Sands shares, giving Suncor the accompanying rights that the energy company has been seeking n the last few months. After trying to acquire COS shares with two separate offers Suncor made a hostile takeover bid for Canadian Oil Sands. This led to months of disagreements and negative statements on both sides. Suncor needed to have two thirds of the COS stock tendered by shareholders in order to be successful in their goal, otherwise the offer worth $4.3 billion would fall through. A Friday announcement alerted the public that Suncor will have the ability t acquire the rest of the COS shares needed and ensure the acquisition transaction goes as planned.

In January Canadian Oil Sands accepted the takeover offer made by Suncor, and management approval was secured. Originally Suncor was offering COS shareholders an exchange of 1 COS share for 0.25 Suncor share. This offer was increased to 0.28 share of Suncor stock for every share of COS stock. This is good news for stockholders who offered their shares. Suncor president and CEO Steve Williams gave a statement that read in part “We’re pleased with the strong level of support from COS shareholders. From the outset, we’ve spoken about the excellent value this offer creates for both COS and Suncor shareholders and I’m looking forward to delivering on that commitment.” With the low oil prices and recent cuts made by almost every company in the energy sector the acquisition could be good news for everyone involved.