{"id":9462,"date":"2015-06-26T06:07:12","date_gmt":"2015-06-26T11:07:12","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9462"},"modified":"2015-06-26T06:07:12","modified_gmt":"2015-06-26T11:07:12","slug":"canadas-oil-patch-goes-into-convulsions","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9462","title":{"rendered":"Canada\u2019s Oil Patch Goes Into Convulsions"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/06\/26\/cfib-small-business-confidence-index-alberta-canada-plunges-to-2009-level\/\" target=\"_blank\">Canada\u2019s Oil Patch Goes Into Convulsions<\/a><\/h3>\n<p>Alberta, the province that has become the epicenter of Canada\u2019s oil bust, does not yet have a budget for fiscal 2015-16. Premier Rachel Notley promised delivery by October. But it won\u2019t be easy. Ideas are already floating around and are getting shot down. The problem: a budget crisis has set in after a sudden shortfall of C$7 billion in oil revenue.<\/p>\n<p>There have been layoffs in the oil patch. Companies are retrenching. Home prices are tumbling in Calgary, the oil capital of Canada. In May, they\u00a0<a href=\"http:\/\/wolfstreet.com\/2015\/06\/14\/is-canada-next-household-debt-home-price-bubble\/\"><u>plunged a record 3.3%<\/u><\/a>\u00a0and are now down 7% from their peak seven months ago.<\/p>\n<p>In\u00a0commercial real estate, it\u2019s getting ugly. The number of transactions of\u00a0C$1 million or more\u00a0in the first quarter plummeted by 21%, and the dollar value of transactions dropped 11%, according to RealNet Canada, cited by the\u00a0<a href=\"http:\/\/calgaryherald.com\/business\/commercial-real-estate\/calgary-commercial-real-estate-market-reeling-from-oil-price-drop\"><u>Calgary Herald<\/u><\/a>.<\/p>\n<p>Cushman &amp; Wakefield reported that the premium office market in Calgary is \u201creeling from the sudden impact of downsizing companies.\u201d Unless a miracle happens in the oil markets that sends prices back into the stratosphere, the premium office market will see vacancy rates\u00a0climb to 12.4% by the end of this year, and to 15.4% by the end of 2016, the worst since the early 1990s. In the first quarter alone, a record 1.23 million square feet of office space were put back on the market as companies, mauled by the oil-price plunge and trying to stay alive, are slashing operating expenses where they can.<\/p>\n<p>With impeccable timing, a flood of new space is being built and will soon come on the market. Bob McDougall, senior managing director of brokerage for Cushman &amp; Wakefield in Calgary, explained:<\/p>\n<blockquote><p>\u201cOn top of low office demand and companies subletting record amounts of space, we\u2019re in the midst of a major development cycle with about three million square feet under construction downtown. Right now, it\u2019s a perfect storm.\u201d<\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canada\u2019s Oil Patch Goes Into Convulsions Alberta, the province that has become the epicenter of Canada\u2019s oil bust, does not yet have a budget for fiscal 2015-16. Premier Rachel Notley promised delivery by October. But it won\u2019t be easy. Ideas are already floating around and are getting shot down. The problem: a budget crisis has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[2693,103,6755,588,1775,6756,5918,4254,4255],"class_list":["post-9462","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-calgary","tag-canada","tag-canadian-oil-patch","tag-oil","tag-oil-price-collapse","tag-oil-revenue","tag-rachel-notley","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9462"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9462\/revisions"}],"predecessor-version":[{"id":9463,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9462\/revisions\/9463"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}