Connect with us

Real Estate

Why Rachel Notley’s refinery pitch won’t solve the oilpatch’s problem

Editor

Published

on

[ad_1]

Considering the recent oil price crash in Western Canada and the fact a provincial election is expected in the spring, the Alberta government is trying to pull out all the stops to lift the oilpatch out of the doldrums​.

Buying railway oil tank cars, subsidizing petrochemical plants and mandating oil production cuts are some of the NDP’s moves to spur activity in the industry or to increase oil prices.

Those moves have all received relatively strong support. 

But the government’s latest announcement aimed at aiding the industry, to look at building a new refinery in Alberta, is being met with significant skepticism. 

The Alberta government is issuing a request for expressions of interest from the private sector to build a refinery in the province that would use oil extracted here.

Experts say Alberta already has more refinery capacity than it needs and the biggest problem facing the province’s oilpatch remains unsolved — a lack of export pipeline space.

“It sounds, if I may be so blunt, like a little bit of desperation,” said Roger McKnight, chief petroleum analyst with En-Pro International.

“What is the market? Where is it going? How does it get out of the country?”

The only refinery to be built in Alberta in the past 30 years was the North West Sturgeon Upgrader, north of Edmonton, which was constructed with help from the Alberta government. The refinery’s price tag swelled from an estimate of $5.7 billion in 2013 to $9.5 billion. The facility has also faced criticism for only processing up to 50,000 barrels per day and only producing diesel, of which there is already ample supply in the province.

“It’s hard to be polite here. That’s an awful lot of money for very little return,” McKnight said. “I think it was a bit of a mistake.”

The Alberta government argues a new refinery would create jobs and create more wealth for the province by exporting a higher-value product. The Sturgeon refinery employed 8,000 people during construction and will employ around 400 full-time workers when it ramps up to full capacity.

The last refinery to be built in Alberta was the North West Sturgeon Upgrader, which was over-budget and delayed. It’s not yet operating at full capacity. (CBC)

Ian MacGregor, chairman of North West Refining, which is part-owner of the Sturgeon facility, says more refineries is exactly what Alberta needs. 

“I believe that refining is the future,” he said. “What we have to start doing is we got to quit selling raw material. We’ve got to sell finished goods.”

Constructing a refinery would likely take between five and 10 years, according to experts. Alberta has five refineries with a total capacity of more than 475 million barrels per day. The province has the largest refining capacity in the country, amounting to about 25 per cent of Canada’s total processing volume.

Calgary-based petroleum industry analyst Michael Ervin doesn’t expect there will be much interest from industry to build a new refinery in Alberta without a sizeable subsidy.

“I doubt that the private sector will really see a business case for this unless the Alberta government was willing to ante up close to the entire cost of building a refinery,” said Ervin, who estimates the cost of constructing a typical refinery at around $15 billion.

Considering the long-term trend of more electric vehicles on the road, Ervin said the business case for a new refinery “just doesn’t seem to be there.”

‘A wish and a dream’

Duane Bratt, a political scientist at Mount Royal University in Calgary, sees Tuesday’s announcement as pre-election rhetoric, much different from more recent actions targeting Alberta’s oil price woes.

“Whether that’s convincing the feds to buy Trans Mountain, or announcing the rail car purchase, or the curtailment of oil production — those are actually concrete things that have happened,” Bratt said. “[The refinery] is just a wish and a dream.”

The NDP has long favoured constructing more refineries in the province and did campaign on the issue during the last election.

If you were looking at investments you could make as a government in industries that are labour intensive, refining would be way at the bottom of that list.– Andrew Leach, University of Alberta

Submissions from the private sector will be accepted until Feb. 8. Depending on interest, the government may issue a formal request for proposals.

Refineries are often built near high-demand centres and also where labour and construction costs are relatively low, such as in parts of the U.S. and overseas.

University of Alberta economist Andrew Leach said there aren’t many details about how committed the government is to seeing a refinery built, or how the proposals would be evaluated.

“So, first pass, certainly nervous about it and not enough detail yet to tell you exactly why,” Leach said of the announcement.

Not enough jobs 

But if one of the big arguments for building the facility is jobs, that’s not enough, Leach said.

“If you were looking at investments you could make as a government in industries that are labour intensive, refining would be way at the bottom of that list,” Leach said.

Why Rachel Notley’s Alberta NDP is still considering building an oil refinery

Leach said there’s also the economic question of whether the financial return from refining is worth it.

“And the distinction there is, are we creating a product that’s more expensive enough to justify all of the labour and capital we’d have to put in to do it?

“And for the most part, in Alberta, the answer has been ‘no’ for a lot of the previous decades, which is why the commercial interest isn’t there.”

[ad_2]

Source link

قالب وردپرس

Real Estate

Window repair or replacement is the responsibility of the condo corporation

Editor

Published

on

By

If the windows in your condo are hazy, drafty, or have rotting frames, it’s an indicator that they need repairs or outright replacement.

However, under the Condominium Act, it is the responsibility of the condo’s board to carry out such changes as a replaced window is a common element.

“Under the Condominium Act, a declaration may alter the maintenance or repair obligations of unit owners and the corporation but cannot make unit owners responsible for repairs to the common elements,” said Gerry Hyman is a former president of the Canadian Condominium Institute and contributor for the Star.

“A declaration for a high-rise condominium invariably provides that the unit boundary is the interior surface of windows. That means that the entire window — whether it is a single pane or a double pane — is a common element. Necessary repairs or replacement of a broken pane is the obligation of the corporation.”

According to Consumer Reports, selecting an installing windows replacement can be very overwhelming for homeowners. Therefore, if you aren’t covered by your condo’s corporation, it would be necessary to hire professional hands.

Wood, vinyl and composite windows need to be tested on how they can withstand various natural elements. For wind resistance, a window can be very tight when it’s warm but get quite cold too—especially when it begins to leak a lot.

Whatever the case may be, the bottom line remains that replacement windows can save you heating and cooling costs, but it’s best not to expect drastic savings.

Additionally, while getting a new window might help you save on your electric and gas bills, due to their expensive cost, it may take a long time to offset their cost.

Mid-last-year, the government withdraw a $377 million Green Ontario program that provided subsidy on windows to installers and repairers. Window companies had to install energy-efficient windows in order to qualify for the government subsidy that pays for up to $500 of a $1,000 to $1,500 window.

Due to the largely generous subsidies from the government under the Green Ontario program, a lot of window dealers were fully booked for months—even after the program had ended.

“We’re fine with the program ending, we just need more time to satisfy consumers,” said Jason Neal, the executive director of the Siding and Window Dealer Association of Canada, the industry group representing window dealers in a report.

According to Neal, the Progressive Conservatives acted hastily, making massive changes with no prior notice.

“No notification was given to us by anyone,” he said, noting he learned about the change through one of his dealers.

“It’s created a ripple effect.If they had just given us notice we would have pushed that down the line from the manufacturer right into the dealer right down to the consumer.”

Neal noted that he wasn’t particularly sad to see the Green Ontario program end, as it was “the worst rebate program in the history of the window industry.”

“It’s been horrible,” he said. “$500 a window has created such hysteria.”

However, despite the program ending about a year ago, numerous homeowners have been contacting window dealers consistently with concerns that they might not be able to afford replacement windows without the government’s subsidy.

“I understand their concern,” said window dealer Chris George. “I would suggest they reach out to their local representative of the government in their riding and let them know about their concerns.”

Continue Reading

Real Estate

7 Vancouver Real Estate Buying Tips

Editor

Published

on

By

The real estate market in Vancouver is turning around for good for everyone looking to purchase a home.

Previously soaring prices are now beginning to ease up, making it a perfect time for buyers—with real estate agents already getting ready for a very busy spring and summer season.

However, before splashing cash on a new property, there are some very important tips you need to know to ensure you make the most of the buyer’s market.

Here are some few expert tips that would guide you when purchasing a home in the sometimes frustration Vancouver seller’s market.

  1. Get adequate financing

It is very important that before you make the move to purchase a property, you put into careful consideration your credit score.

Normally, home buyers with lower scores use the secondary mortgage market to finance their purchase, as they’re more likely to pay a higher interest rate.However, it is advisable to get loan approval long before purchasing the house. This way, you are fully aware of how much you are able to spend—but never be tempted to borrow the maximum amount of money available.

“What’s your mortgage payment that you’re comfortable with? And take into the fact the taxes you’re going to have to pay, if it’s a strata – what the maintenance fees are, if it’s a home what type of maintenance are you going to have to pay in the future?” said Phil Moore, president of the Real Estate Board of Greater Vancouver in a report.

Always be careful of the type of loan you secure and ensure that you can comfortably afford it over a long period of time.

  1. Get a real estate agent

Buying a property without professional help is a very risky move and can be likened to choosing to represent yourself in court without a lawyer. While you might trust your negotiation skills, only realtors are permitted to present offers directly.

Therefore, it is necessary to get a professional real estate agent in the area to represent you. So, screen a few agents and select the best one who has in-depth knowledge of the markets and has a great reputation.

“They’re there to protect you. They’re there to walk you through each step of the process,” Moore said.

  1. Sign up for automated alerts

Most—if not all—realtors have access to the Vancouver real estate board’s database which is updated approximately two days before the public MLS website.

Therefore, you can request from your realtor to sign you up for automatic real-time alerts of all new listings. Doing this gives you an edge as you’re among the very first to know about new properties.

  1. Do a thorough inspection

After receiving an alert for a new listing, it is necessary to push almost immediately for an inspection from your realtor. In this current market, buyers now have time to make an inspection.

Making a quick inspection eliminates any surprises—as there could be major maintenance or repair issues that could spring up. Therefore, you can now table your offer based on the outcome of the inspection, with clauses about claiming your damage deposit back if everything isn’t as was advertised.

Additionally, if you notice that renovations were done, you need to be sure that it was permitted work and carried out appropriately. Failing to do this would ultimately lead to further cost down the line and simultaneously affect the resale value.

  1. Have a back-up plan

There’s always the possibility that everything may not go as smoothly as you’d want. From the inspection being a failureto the property not living up to your expectations—or not being able to agree on the closing date that matches with your needs.

However, a professional real estate agent will definitely help you get past all of these things. If you plan on selling the property as you buy, you can table that and make it part of the deal.

“You’ve got an option, especially in a buyer’s market: you can put in an offer subject to selling your place. So maybe you want to have a place lined up,” Moore added.

Additionally, building contingencies into your buying plan is necessary. Things such as unexpected delays in closing the deal, closing cost and moving costs that could result in added living expenses if that’s your permanent home.

  1. Don’t fall for the buyer frenzy

The Vancouver market buying frenzy that caused a serious climb in the prices a couple of years ago has ended. Thus, it is important not to get caught up in bidding wars with properties that have been deliberately under-priced—with the hope of initiating multiple offers.

“Some of the sellers have been on the market for over a year and they’re eager to sell. So what I’m saying to consumers is: you have a lot of choices, you’re in the driver’s seat, let’s go out and take a look at what’s available,” said Moore.

  1. Never be wary of multiple offers

When purchasing a property, don’t be afraid of multiple offers as you have the same opportunity as anybody else.

Typically, there are just a few offers below the asking price: a couple priced fully, and two or three above the asking price—depending on how close the fair market value is from the asking price.

Continue Reading

Real Estate

Do you know what kind of condo you’re buying?

Editor

Published

on

By

(NC) Condominiums can come in all shapes and sizes. But it’s important to know that not all condos are created equal when it comes to warranty coverage.

Whether you’re buying a condominium townhouse, loft-style two-bedroom or a high-rise studio, they are all classified as condominiums if you own your unit while at the same time share access (and the associated fees) for facilities ranging from pools and parking garages to elevators and driveways, otherwise known as common elements.

The most common types of condos are standard condominiums and common elements condominiums. The determination of how a condominium project is designated happens during the planning stage when the builder proposes the project and the municipality approves it.

When you’re in the market to buy, you need to know how your chosen condo is classified because it affects the warranty coverage under the Ontario New Home Warranties Plan Act. Standard condominiums have warranty coverage for units and common elements, but common elements condominiums only have unit coverage.

How could this affect you as the owner? If your condo complex has underground parking and, for example, there are problems with leaks or a faulty door, the condo designation will determine whether there’s warranty coverage.

If your unit is a standard condominium development, then the common elements warranty may cover the repairs. If it’s a common element condominium development, then repairs might have to be covered by the condo corporation’s insurance, which could impact your condo fees or require a special assessment on all the owners.

To avoid surprises, you should have a real estate lawyer review the Declaration and Description attached to your purchase agreement to be sure that you know the designation and boundaries of the unit you’re looking to purchase. Find more information on the types of condos and their coverage at tarion.com.

Continue Reading

Chat

Trending