Like other disciplines, economics tends to organize material into narratives. It is worth scrutinizing the “stylized facts” that underlie these narratives, as page B15 of Saturday’s Globe endeavoured to do. One piece of conventional wisdom is that the Canadian dollar’s value is driven by the skyrocketing price of oil. David Wolf argued, and Heather Scoffield reported, that the loonie is probably […]
Read moreAlthough I generally disagree with Andrew Coyne’s take on economic issues, I enjoy his commentary because it is almost always articulate and well-informed. Last Saturday’s column, which may be his second-last at the National Post before moving to Maclean’s, was a glaring exception. In particular, it contradicted Coyne’s own previous contentions. When the Government of Newfoundland and Labrador took an equity […]
Read moreNotwithstanding the usual doom and gloom from the oil industry and its cheerleaders, Premier Stelmach’s decision to increase oil and gas royalties by $1.4 billion in 2009 is an unduly timid move in the right direction. The provincial NDP leader summed it up as follows: “The premier has compromised yet again a report that represented a compromise in the first […]
Read moreSeptember 25, 2007 – The NEB decision: 17 jobs in hand and 18,000 in the bush Wed, 09/26/2007 – 09:40 — Fred Wilson (Full post can be found at http://blogs.cep.ca/en/node/53 Readers of this column have by now seen the reports of the National Energy Board decision to approve the Keystone pipeline. CEP has received extensive media coverage of its […]
Read moreToday, Statistics Canada released a very interesting study on the economic demand that is driving greenhouse-gas emissions. Between 1990 and 2002, exports outstripped Canadians’ personal expenditure as the leading source of Canada’s industrial emissions. Indeed, exports accounted for essentially all of the increase in these emissions. Canadian Industrial Emissions (in megatons) Final-Demand Category 1990 2002 Exports 176.4 264.4 Personal Expenditure […]
Read moreLast week, the Royalty Review Panel recommended that Alberta raise its oil and gas royalties. Its 100-page final report, Our Fair Share, has generated healthy debate on a critically important subject. The basic message follows: Albertans do not receive their fair share from energy development and they have not, in fact, been receiving their fair share for quite some time. […]
Read moreWell, it happened. The petro-fueled loonie broke parity with the greenback yesterday, and is headed higher still. I can’t believe that so many people still interpret this as a symbol of our national renaissance. In fact, the reverse is true. The dollar’s flight both reflects, and simultaneously reinforces (in fine Kaldorian fashion) our regression into serving once again as a […]
Read moreCIBC World Market recently put out quite an interesting report on the future of world oil supply and demand and the implications for Canada. ( OPEC’s Growing Call on Itself.) http://research.cibcwm.com/economic_public/download/occrept62.pdf The major point is that OPEC countries plus other major oil producing countries such as Russia and Mexico are consuming a fast-rising share of their own oil output at […]
Read moreIn April 2006, Newfoundland Premier Danny Williams walked away from proposed Hebron development because the multinational oil companies were not offering sufficient benefits for his province. The national media and federal government heaped scorn on this decision. A couple of days ago, Williams secured a new deal that gives the province a 4.9% equity stake in Hebron, a 6.5% “super […]
Read moreI am big on big investment spending. I’ve argued for years that weak business investment undermines our job creation, our productivity, our incomes, and our competitiveness. I’ve proposed lots of policy measures to stimulate more investment spending: public as well as private. But what’s happening in northern Alberta is enough to nauseate even a Soviet-esque advocate of mass capital accumulation […]
Read moreNew CEPR Paper Looks At Venezuela’s Economy During the Chávez Years For Immediate Release: July 26, 2007 Contact: Dan Beeton, 202-293-5380 x104 Washington, DC: A new paper from the Center for Economic and Policy Research looks at the Venezuelan economy during the last eight years and finds that it does not fit the mold of an “oil boom headed for […]
Read moreRelatively high inflation in Alberta seems to be the only justification for raising Canadian interest rates. In this context, it is tremendously significant that the Government of Alberta itself opposes increasing rates. Of course, higher interest rates imply a higher Canadian dollar. Alberta sells oil and gas, the prices of which are denominated in US dollars. As the Canadian dollar […]
Read moreMore fascinating stuff from that CIBC report follows: While many of the big names in the mining and metal processing industry have been spoken for, there are even larger capital inflows potentially still ahead in the energy sector. Thanks to the oil sands, and a still laissez-faire attitude towards ownership of those resources, Canada represents anywhere from 50-60% of the […]
Read moreThe National Energy Board is holding hearings into the proposal to ship Alberta tar sands bitumen to the US for further refining – something of a reductio ad absurdum in terms of resource-led development. Fred Wilson from CEP is writing a daily blog from the hearings where his union, the Parkland Institute and other Alberta progressives are intervenors. If you […]
Read moreBusiness Week (May 28 issue) documents how US big oil is ploughing the windfall gains from high prices into share buy backs rather than new production. Exxon Mobil – the world’s most profitable company – pumped out $49 Billion in operating cash flow last year, just 40% went into new capital expenditures, down from 50% in 2000. The other 60% […]
Read moreThomas Palley credibly suggests that the Bush White House has been driving up oil prices by expanding this reserve, but then lowering them during American elections by depleting the reserve. I have also heard suggestions that the Clinton White House depleted the reserve at election time, but am not sure whether it expanded the reserve outside of elections. Manipulating the Reserve by Thomas […]
Read moreIn yesterday’s Financial Post, Jack Mintz repeated the notions that the Budget featured “no broad tax relief” and big spending. He wrote, “Certainly, the idea of making the tax structure more efficient, fair and simple takes a back seat to the rash of special politically driven measures.” However, the tax measures that Mintz specifically endorses – the Child Tax Credit, […]
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