Maple Leaf Memo

Alberta Wants to Compete

The new royalty regime itself is an acknowledgement that front-end investment--particularly where innovative extraction techniques are absolutely critical to success, as in the long-lived Pembina field--in conventional production often demands new technology.

Canada's Real Gold Medal

Canada's prudence obscures what could be an explosive upside in coming years--particularly for US-based investors who will get the added benefit of putting greenbacks to work in loonie terms.

A Tale of Two Indicators

China is the undisputed leader of this still-toddling recovery; we’ll wait for further confirmation before we ring the double-dip alarm.

How Dirty Is Dirty?

No other industrial democracy in the world has an asset similar to Canada's oil sands. Resource constraints brought on by new demand from China, in particular, and India will be far easier to navigate if we take an open-minded approach to it.

Time to Renew

Hydroelectric power is ubiquitous in many Canadian provinces, so much so that the word “hydro” has come to stand for electricity generally; the names of the government-run companies that provide such power reflect this significant presence.

CIC Goes Public

China Investment Corp's first 13-F filing is a positive from a public relations perspective and makes for good geopolitical optics. The real significance is what it suggests China can do with its USD2.7 trillion of foreign currency reserves.

Cleaner Oil Sands, Now!

And as he exhorted the private sector to basically tell a better story Canadian Environment Minister Jim Prentice provided real help by saying Canada wouldn’t adopt its own climate change legislation until the US passes a bill.

Royalty Relief in Alberta

That Alberta oil and gas producers could be looking at more favorable royalty structures is, obviously, a positive; every little bit that helps the bottom line counts. However, at this point the folks who have to manage these companies would settle for predictability.

Rate Watch Heats Up

In addition to the statement announcing the rate decision the central bank also announced today that it will cut back certain extraordinary public market operations it put in place at the height of the global financial panic.

The Canada-China Trade

Though bilateral trade between Canada and China is only in its early stages of growth, the Great White North is already benefitting from the Middle Kingdom’s appetites.