"Hmmm.  Who to thank at Thanksgiving?"

Commentary

Alaskans who don't want to learn the hard way better stop being so proud of their God given natural resources.

Talk of oil tax increases at a time of low oil prices is not a good Thanksgiving message to send investors, still contemplating an LNG export project and a few exploration/development projects.

Instead, Alaska might try maximizing its natural resource potential by treating investors who have cash to develop the State's resources, with courtesy and encouragement.  An attitude check on the part of citizens who always want others to "do it my way", would be refreshing.  

Alaskans could stop demanding "must haves" from energy and mining investors; instead, Alaska might try developing a reputation of being an inviting investment destination where a "deal is a deal".  

Just as "hope is not a strategy", it's also true that good resource potential is no substitute for being competitive.

The article below describes what is happening to Calgary these days; hopefully this is not a sign of things to befall Alaska, but that is possible!  Those of us who lived through the 80s remember with clarity what economic misery feels like.

In Calgary's case the world price of crude along with environmental opposition at every stage of development is responsible for the economic misery.

Alaska is even more dependent on oil revenue than Alberta and its big city, Calgary, but may be luckier; for, in spite of world oil and gas prices, our three large producers — and their smaller colleagues — are hanging in there as strongly as they can.  Job losses are here but not to the degree other oil patches are experiencing…yet.  

Thank our lucky stars.

Then, after we're through thanking inanimate stars, Alaskans would do well to give a little thanksgiving to the investors who have taken massive risks, endured massive tax and economic risks over the years and still are dedicated to a gas monetization project in the face of unknown risks ahead.

So, what better time of the year to say a word of thanks, both to the investors and to the Creator of the state's magnificent resource potential?  

Credit where credit's due.  

Unless we proudly persist in believing that it is we who deserve all the credit for Alaska's many blessings!

-dh

Calgary's Office Market A Bloodbath!

Calgary Herald by Bloomberg News

Vacancy is already at a five-year high in the city and rents are the lowest since 2006 after thousands of office jobs were cut. Energy company tenants have now begun to ask for rental relief and are offering subleases for as little as half the going rate, according to real estate brokers including Jones Lang LaSalle Inc. and Avison Young Canada Inc.

That’s before five new office towers with about 3.8 million square feet of space hits the market in the next three years.

“It is a bloodbath,” said Alexi Olcheski, an office-leasing principal at Avison Young from his office in downtown Calgary. “We’re at the highest point of fear and uncertainty now.”

In downtown Calgary, the vacancy rate jumped to 14 per cent in the third quarter, the highest since 2010 and compared with five per cent for downtown Toronto, according to CBRE Group Inc. Companies are subleasing a record 2.7 million square feet, the brokerage said. That doesn’t include as much as two million square feet of so-called “shadow vacancy” or space leased but sitting empty, which would push vacancy to 16 per cent, the most since the mid-1980s.  More….