An Avison Young White Paper...Alberta’s Place in the Canadian Energy Economy The Alberta energy sector is the province’s primary economic driver representing 24.6% of gross domestic

Partnership. Performance.1

Oil & gas sector’s impact on Alberta’s commercial real estate marketsShort-term volatility will eventually give way to stability

Executive Summary As an important Canadian resource industry and the primary driver of the Alberta economy, the energy sector, with its rising and falling fortunes, has a critical effect on the province’s commercial real estate markets. Demand from energy companies, as well as secondary and tertiary industries, for office and industrial space is a major component of commercial market dynamics across Alberta, and especially in the key urban centres, Calgary and Edmonton.

If the price of oil stabilizes and reverses its slide, demand for commercial real estate should pick up; but if oil prices continue to decline, demand will largely be absent from the marketplace, leading to a rise in sublet availability and a repricing of office space in 2015. These effects are to be expected given the historical track record of boom-bust cycles in the oil patch. Importantly, elevated sublease availability will create discounted opportunities for some tenants, relative to head lease options. The long-term strategies of the institutional stakeholders will help ride out the headwinds and protect against the downside, allowing the market to rebalance itself.

Recent Oil Price Trends Following several years of elevated pricing, oil’s value decreased sharply during 2014. Multiple factors drove this decline, which can best be understood in the context of worldwide supply and demand trends.

According to a recent report by the Canadian Energy Research Institute (CERI), global supply of crude oil and liquids increased by 8.5% (7.2 million barrels per day (MMb/d)) from 2005 to 2014, with the Organization of the Petroleum Exporting Countries (OPEC) countries making up 13.8% of the increase and non-OPEC countries (primarily in North America) accounting for the other 86.2%. During the same period, growth in demand (7.5 MMb/d, or 8.9%) marginally outpaced

supply growth, with most of the increase coming from China, India and the Middle East. Supply and demand imbalances in the market are buffered by either a buildup or drawdown of inventories, but ongoing oversupply or shortage situations are generally expected to lead to pricing corrections that restore balance to the market. Through much of 2014, increases in production volume exceeded total unplanned production outages and disruptions, resulting in a buildup of excess supplies.

Another factor affecting oil pricing has been price wars among producers – both in terms of selling prices and production costs. Most crude oil prices dropped by more than half from July to December of 2014. Although production costs have been rising since 2011, there is also a sense that from 2010 to mid-2014, prices may have been artificially elevated relative to actual production costs, as unplanned disruptions and outages in production outweighed cumulative production increases, resulting in a built-in risk premium during that time. When production increases began to outweigh disruptions and outages in 2014, the situation was reversed, pushing prices to decline to a level that better reflected underlying production expenses. In this environment, projects on the cusp of profitability are likely to be put on hold until prices rise to support them, but a far-reaching moratorium on exploration, development and production is not expected. CERI forecasts that most new supply growth in coming years will require a price range of US$50 to $75/bbl, and that this price point will allow production to meet anticipated demand.

The strengthening U.S. dollar is also having an influence on commodity prices, which usually fall to compensate for the higher value of the currency, as commodities are priced in U.S. dollars. The positive outlook for the U.S. dollar has the potential to push oil prices further down. Canadian producers are susceptible to these currency value fluctuations in the global marketplace, and will be examining options for increasing revenue and cutting costs to maintain profitability.

An Avison Young White PaperA PR I L 2015


Canadian Overview Canada possesses abundant natural resources and is among the world’s largest producers of oil and natural gas, qualifying as a net exporter. The country’s energy reserves are sufficient to satisfy domestic and international demands for several generations. Considering this resource base, as well as projected commodity prices and economic drivers, total Canadian energy production is forecast to grow substantially well into the future.

Oil production is expected to lead this growth, with the National Energy Board (NEB) placing production for the year 2035 at an estimated 928,000 cubic metres per day (m³/d) (5.8 MMb/d), or nearly 42% higher than 2012 production. Increased in-situ oilsands production is anticipated to account for the majority of overall growth.

Canada’s exploration and production industry is truly national in scope, with activity in 12 of 13 provinces and territories. The country’s reserves are situated primarily in Alberta and Saskatchewan, with much of the remaining oil located offshore in Newfoundland and Labrador.

Canada is one of the world’s five largest energy producers and is the principal source of U.S. energy imports, with oilsands production expected to support future growth in the world’s liquid fuel supply. In addition to oil, Canada is the world’s fifth-largest producer of dry natural gas and the primary source of U.S. natural gas and electricity imports, making the country the largest foreign supplier of energy to the U.S. This relationship, however, is a double-edged sword. Just as the U.S. depends on Canada for much of its energy needs, Canada

is, in return, greatly dependent on the U.S. as an export market. This situation, together with economic and political considerations, has led Canada to consider diversifying its portfolio of trading partners, particularly by placing emphasis on supplying emerging markets in Asia.

Alberta’s Place in the Canadian Energy EconomyThe Alberta energy sector is the province’s primary economic driver representing 24.6% of gross domestic product (GDP) in 2013. In total, the sector is worth approximately $81.6 billion or $80,200 per capita. The abundant resources available in Alberta represent the world’s largest deposits of oilsands and third-largest reserves of crude oil after Saudi Arabia and Venezuela. In 2011, Alberta’s total proven oil reserves were 170.2 billion barrels, or about 11% of total global oil reserves (1,523 billion barrels).

Since Alberta accounts for more than 80% of Canada’s oil and gas production, many upstream businesses are based in the province, and most firms have head offices in Calgary. The Calgary Chamber of Commerce notes that in 2012, of the 135 head offices in Calgary, 105 were energy related. Edmonton, Alberta’s capital, continues to be a hub of oilfield technology and industrial development with the majority of the industrial capacity tied to processing, exploration and exploitation industries. The Edmonton region also possesses a significant portion of the province’s $6.5-billion manufacturing sector, producing drilling rigs, high-performance drill bits and oil-handling equipment.

ECONOMIC BENEFITS GENERATED OVER NEXT 25 YEARS: PROVINCES OUTSIDE ALBERTA

AB

SK MB

Moose Jaw

Regina

Sarnia

Nanticoke

Hibernia

WhiteRose

Hebron

Terra Nova

ONQC

NL

NB

NS

N

BC

NT

NU

YT

$28 billionBritish Columbia

$5 billionSaskatchewan

$4 billionManitoba

$63 billionOntario

$14 billionQuebec

$3.3 trillionAlberta

Other: $3 billion(Includes New Brunswick, Newfoundland

and Labrador, Northwest Territories, Nova Scotia, Nunavut,

Prince Edward Island, Yukon)

Avison Young White Paper: Energy Sector’s Impact on Alberta’s Commercial Real Estate Markets

Source: CERI 2011 - GDP 2010-2035


Economics of Alberta EnergyThe energy sector remains the province’s primary economic engine, contributing $85.5 billion in revenue during 2012 with $66.1 billion of that coming from exports. Crude oil accounted for 86.1% of Alberta’s energy exports that year. In 2009, the oilsands sector alone spent $25.1 billion on capital projects, and Calgary saw some $50 billion worth of mergers and acquisitions activities in the previous year. Over the next 25 years, fully developed oilsands are forecast to generate $3.3 trillion in economic activity, up to 700,000 jobs annually and hundreds of billions of dollars in tax revenue to the provincial and federal governments.

The upstream petroleum industry has attained an international reputation for excellence in several areas, including:• Specialized controls and computer applications;• Services, equipment and training for environmental protection and safety;• Gas processing, sulphur extraction and heavy oil upgrading;• Pipeline construction and operation;• High-tech exploration and production methods;• Cold-climate operations;• Oilsands, heavy oil and sour gas development.

The Outlook Canadian oil sold on the Western Canadian Select (WCS) benchmark is significantly heavier than the more commonly used West Texas Intermediate (WTI) and Brent Crude blends and, therefore, requires more processing steps before being refined into usable products. Because of this, WCS generally trades at a price discount. This price differential between WCS and WTI has historically been volatile, producing large spreads on a monthly basis. In 2013, the price differential averaged $25.14 and, for 2014, the price differential averaged $19.66.

Political delays in the construction of new pipelines have raised fears that oil produced in Alberta will become more difficult and costly to bring to foreign markets. So far, these concerns have been alleviated by an increase in the amount of oil being transported by rail. Historically, only around 200,000 barrels per day (bpd) were shipped by rail; however, in the fourth quarter of 2013, that figure jumped 83% according to the NEB.

By the end of 2013, oil by rail transport capacity reached 375,000 bpd. Industry experts expect the trend to continue and foresee aggressive expansion on this option.

Efforts continue on the part of both industry and government to develop additional pipeline capacity either by creating new infrastructure, expanding existing networks or repurposing specific sections to maximize efficiency. In addition to TransCanada’s proposed Energy East pipeline project, industry experts remain cautiously optimistic that at least one of the two main pipelines proposed in Canada - the Northern Gateway Pipeline and Keystone XL - will come to fruition.

Energy East, which remains under review by the NEB, is projected to deliver significant national economic benefit. Current estimates project a total of $35 billion in additional GDP for Canada during the projected six years of development and construction and 40 years of operation. All six provinces along the pipeline’s route are expected to see job creation, economic growth and increased tax revenue related to the proposed pipeline’s construction and operation. More than 10,000 full-time jobs will be directly supported during development and construction, and another 1,000 full-time jobs will be directly supported by the pipeline once it enters service. An additional $10 billion in tax revenue is expected to be generated for all levels of government during the life of the project.

The Northern Gateway pipeline, which would send oil to the West Coast of Canada for eventual export to Asian markets, faces resistance stemming from its proposed path through First Nations lands and environmental concerns, but could add more than 500,000 bpd of export capacity for Canadian oil. Should the project go ahead, Northern Gateway’s operation is expected to grow Canada’s GDP by more than $300 billion in the coming 30 years. Alberta will be the primary beneficiary of the project, with $67 billion in revenue expected over the same time period, creating nearly 600 long-term jobs in addition to the 3,000 workers required to construct the pipeline. Local goods and services contracts will be boosted by an estimated $200 million. The resulting economic boost is expected to bode well for the commercial real estate markets in Calgary and Edmonton.


OIL PRICE EXPECTATIONS

High Average LowQ1 2015 $78.00 $59.97 $41.00Q2 2015 $80.00 $63.40 $47.00Q3 2015 $91.00 $69.75 $50.00Q4 2015 $95.00 $74.50 $55.62

2016 $110.00 $78.81 $57.002017 $130.00 $82.67 $60.00

$78.00 $80.00

$91.00$95.00

$110.00

$130.00

$59.97$63.40

$69.75$74.50

$78.81$82.67

$41.00$47.00

$50.00$55.62 $57.00

$60.00

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 2017

Oil Price Forecasts (US$/Barrel)

High Average Low

Source: Canadian Business Magazine, Feb. 2015; Bloomberg, data as of Jan. 14, 2015; U.S. based on West Texas Intermediate Spot Oil Price; Canada based on Bloomberg Western Canadian Select Spot Oil Price


LIQUID PIPELINES

Plains Midstream

Non-CEPA Member Pipelines

Existing ProposedLegend

Enbridge

Spectra Energy

TransCanada

Trans-NorthernPortland Montreal

Pembina

SuncorInter PipelineAccess

Kinder Morgan


Source: Canadian Energy Pipeline Association (CEPA)

Enbridge Northern Gateway

TransCanada Energy East

TransCanada Keystone XL


Calgary Calgary is Canada’s energy capital and is home to more than 135 head offices, making it Western Canada’s head office centre. Here, you will find the head office of every major oil and gas company in the country and the energy industry’s major trade associations. In addition to major pipeline operators and manufacturers, oilfield services firms, drilling companies, energy-related engineering firms and consulting firms, Canada’s national energy regulator, the NEB, has its headquarters in Calgary, as do the Alberta Energy Regulator (AER) (formerly the Alberta Energy Resources Conservation Board) and Alberta Utilities Commission. Numerous industry bodies and associations are also headquartered in Calgary, including the Natural Gas Exchange and the Canadian Association of Petroleum Producers (CAPP). Additionally, much of Calgary’s skyline is dedicated to company-branded infrastructure, such as the Birchcliff Energy Building (Birchcliff Energy Ltd.), BP Centre (BP), Chevron Plaza (Chevron Canada Limited), the Imperial Oil Campus (Imperial Oil Ltd.), Penn West Plaza (Penn West Petroleum Ltd.), Suncor Energy Centre (Suncor Energy) and the Nexen building (Nexen Inc.). Statistics Canada reports that 1,743 energy business establishments exist in the Calgary Economic Region, and the Conference Board of Canada’s Winter 2015 Metropolitan Outlook report forecasted the Calgary Metropolitan Area’s GDP for 2014 reached $116 billion.

Calgary is also the decision-making headquarters for several large North American pipeline companies and home to the Canadian Energy Pipeline Association (CEPA). Alberta’s network of operating pipelines forms an infrastructure of more than 403,000 kilometres of crude oil, natural gas and other pipelines that link major production areas, markets and export terminals throughout North America. Future opportunities for pipeline growth will provide an avenue for Alberta heavy crude to extend to larger global markets such as China.

Since the province’s first major oil field was discovered in 1947, the industry created to develop and manage these natural resources has become a key economic driver. CAPP estimates that Western Canadian oil production will reach 3.7 MMb/d by 2025, representing approximately 5% of global oil production.

Shale-gas production in Western Canada has expanded dramatically in recent years, especially in the Horn River and Montney basins. Collaborating to develop these plays are producer groups, such as the Horn River Basin Producers Group, which consists of 11 companies, many of which are Calgary-based: Apache, ConocoPhillips, Devon, Encana, EOG Resources, Imperial Oil, Nexen, Pengrowth, Suncor, Quicksilver and Stone Mountain.

Given the positive activity and production outlook, real estate developers have placed Calgary high on their lists for new projects, which is showcased by Calgary’s office contruction boom. In total, 6 million square feet (msf) of office inventory is under construction, to be delivered through 2017. Demand for this new office space is high, with 60% of future downtown inventory having been preleased and 51% of coming Beltline and Suburban inventory preleased. Multiple projects are being built on a speculative basis, further displaying developer confidence.

However, a nervous sentiment settled into Calgary’s office leasing market during the fourth quarter of 2014, leading to overall negative absorption and an increase in vacancy. Market conditions became difficult for oil and gas companies due to falling oil and stock prices, as well as weakening valuations, through November and December, 2014. These events, plus diminished growth expectations, began putting pressure on large tenants to place their unused space on the market to limit their exposure and recoup carrying costs. In addition, many companies with leases expiring later in 2015 began taking a wait-and-see approach. As a result, large pockets of very attractive class AA and A space are remaining on the market for long periods of time.

Calgary is home to the Sustainable and Renewable Energy (SURE) sector, which is managed by Calgary Economic Development to develop strategies for environmentally responsible energy production and natural resource management. Local innovations and research are increasingly found within the SURE cluster, which brings together local companies in the sustainable and renewable energy sector to share knowledge and best practices in the following areas: bioenergy, consulting and engineering, cogeneration, education, energy efficiency, fuel cells, geothermal, green electricity, hydro-electricity, photovoltaic (solar), renewable energy installers, smart grid, waste management and wind energy.

Central to Calgary’s advancements is support from a network of research and post-secondary institutions, think tanks and innovators within business and government. Calgary companies are at the vanguard of advances in carbon capture and storage, including air-capture technology, and the local economy also supports firms developing and commercializing new clean technology through a combination of human, financial, knowledge-based and environmental resources. Calgary is establishing a reputation as a leading centre for sustainable and renewable technology, including carbon capture and storage and CO

2 air capture.



Calgary

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Calgary Annual Office Vacancy Rates

2004 - 2014

Head Lease Sublease

Updated 13-Jan-2015

Updated 10 Mar 2015

$0

$20

$40

$60

$80

$100

$120

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Calgary Annual Job Growth vs. WTI Average Price per Barrel

2001 - 2014

Job Growth (Year-Over-Year) WTI Average Price per Barrel

$0

$20

$40

$60

$80

$100

$120

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Calgary Annual Office Absorption vs. WTI Average Price per Barrel

2001 - 2014

Downtown Office Absorption (sf) WTI Average Price per Barrel

Updated 13-Jan-2015

Updated 10 Mar 2015

$0

$20

$40

$60

$80

$100

$120

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Calgary Annual Job Growth vs. WTI Average Price per Barrel

2001 - 2014


$0

$20

$40

$60

$80

$100

$120

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Calgary Annual Office Absorption vs. WTI Average Price per Barrel

2001 - 2014


Top 10 Energy-Related Transactions2012 - 2014

Company & Location Lease Type & Size (sf)Husky Oil Operations LimitedWestern Canadian Place

Renewal/Expansion925,000 sf

ConocoPhillipsGulf Canada Square

Extension/Expansion625,000 sf

Nexen / CNOOCNexen Tower


Progress EnergyCalgary City Centre

Head Lease370,000 sf

MEG Energy Corp.Eau Claire Tower

Head Lease/Expansion307,000 sf

TransCanada CorporationFifth Avenue Place


Pembina Pipeline CorporationEighth Avenue Place - West Tower

Expansion280,000 sf

Athabasca Oil Corp.Penn West Plaza


Harvest Operations Corp.Scotia Centre


Long Run ExplorationEau Claire Tower


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Calgary Annual Office Vacancy Rates

2004 - 2014

Head Lease Sublease



Edmonton Located in the centre of Alberta’s many energy resources, Edmonton has become the major hub at the northern end of the North American energy corridor. As the province’s conventional oil reserves were beginning to be tapped and exported in the mid-1950s, companies looking to support the burgeoning energy sector were drawn to Edmonton. The city’s proximity to several major oilfields and the existing infrastructure provided by an established metropolitan area proved to be a significant draw to manufacturers and service firms of all types. It is for these same reasons that Edmonton has continued to be a hub of oilfield technology and industrial development, which transformed the city into the industrial powerhouse it is today.

The majority of the industrial capacity is tied to the performance of the oil sector, either through direct relationships with processing or exploration and exploitation industries, or through the general tidal effect of the market in general. A large portion of the region’s manufacturing capacity is employed making drilling rigs, high-performance drill bits and oil-handling equipment (such as refineries and pipelines). Tertiary industries are also heavily involved. Engineering and consulting firms make up the backbone of the Edmonton office market while providing the technical experience necessary to compete in the Alberta energy sector. Notable engineering and consulting tenants in Edmonton include Associated Engineering, AECOM, Morrison Hershfield, Williams Engineering, All-Terra Engineering and WorleyParsons. Perhaps the most notable example is Stantec, an Edmonton company that has become a global powerhouse, and has recently been the catalyst behind the construction of the largest office building ever in the city, the Stantec Tower.

Office real estate in Edmonton, though connected to the energy market in significant ways, will be subject to growing pains in the immediate future due to several large organizations undertaking consolidations. These consolidations have resulted in the

construction of three new office towers (Kelly Ramsay Building, Stantec Tower and The Edmonton Arena District office tower), totalling approximately 1.8 msf and adding nearly 12% more office space to the Downtown market.

Sublease vacancy in downtown Edmonton increased by approximately 52% year-over-year to 177,000 sf at the end of 2014 from 116,000 sf. However, as a proportion of total vacancy, this only amounts to an increase to 12.5% from 10%. Although the city’s downtown office market is less directly tied to oil than is Calgary, Edmonton’s engineering sector has been impacted by the knock-on effects of plummeting oil revenue and a commensurate decrease in oil and gas capital expenditures. As a result, several tenants who made bullish leasing decisions in 2014 have been forced to scale back their real estate expenditures.

Edmonton’s industrial real estate sector is one of Canada’s most well-rounded and consistent markets. Consistent high demand over the past five years has led vacancy rates to hover around 3.5%. Development, meanwhile, has continued at a tremendous pace and has nearly overtaken the city’s supply of zoned and serviced land. Consequently, land prices have been on the rise and have increased to approximately $800,000 per serviced acre in some sectors of the market.

The largest and most well-known oil hydrocarbon deposits in Northern Alberta are the Athabasca oilsands. The region’s total reserves are estimated to be up to 1.8 trillion barrels of oil, a figure in excess of the rest of the world combined. In 2014, production averaged 1.3 to 1.5 billion bpd from both surface mining and in-situ extraction processes. The AER estimates this number will increase to just under 3 billion bpd by 2018.



0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Edmonton Annual Office Vacancy Rates

2004 - 2014

Head Lease Sublease

Edmonton

Updated 13-Jan-2015

Updated 10 Mar 2015

$0

$20

$40

$60

$80

$100

$120

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Edmonton Annual Job Growth vs. WTI Average Price per Barrel

2001 - 2014


$0

$20

$40

$60

$80

$100

$120

-1,000,000

-800,000

-600,000

-400,000

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Edmonton Annual Office Absorption vs. WTI Average Price per Barrel

2001 - 2014


Updated 13-Jan-2015

Updated 10 Mar 2015

$0

$20

$40

$60

$80

$100

$120

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Edmonton Annual Job Growth vs. WTI Average Price per Barrel

2001 - 2014


$0

$20

$40

$60

$80

$100

$120

-1,000,000

-800,000

-600,000

-400,000

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Edmonton Annual Office Absorption vs. WTI Average Price per Barrel

2001 - 2014


Top 10 Energy-Related Transactions2012 - 2014

Company & Location Lease Type & Size (sf)

EnbridgeKelly Ramsey Building & Manulife Place


StantecStantec Tower


ShellCityview Business Park

Head Lease 242,000 sf

CoSyn50th Street Atria


WorleyParsonsHarley Court


JacobsFirst & Jasper

Head Lease96,000 sf

WorleyParsonsCommerce South

Head Lease 86,000 sf

ATCOStandard Life Centre

Head Lease62,000 sf

Alberta Energy RegulatorTwin Atria


AECOMWest Campus

Head Lease40,000 sf

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Downtown Edmonton Annual Office Vacancy Rates

2004 - 2014

Head Lease Sublease



CANADIAN OIL REFINERY CAPACITY

EDMONTONImperial 187Suncor 142Shell 100

MONTREAL/QUEBECSuncor 137Valero 265

NEWFOUNDLAND/LABRADORNorth Atlantic 115

REGINA

Upgrader 135

MOOSE JAWMoose Jaw 19

SARNIAImperial 121Nova 80Shell 77Suncor 85

NANTICOKEImperial 112

UPGRADERSSyncrude (Ft. McMurray) 465Suncor (Ft. McMurray) 438Shell (Scotford) 240CNRL Horizon 135OPTI/Nexen Long Lake 72

VANCOUVERChevron 55

PRINCE GEORGEHusky 12

SAINT JOHNIrving 320

AB

SK MB

Moose Jaw

Regina

Sarnia

Nanticoke

Hibernia

WhiteRose

Hebron

Terra Nova

ONQC

NL

NB

NS

NL

BC

NT

NU

YT

AREA REFINERIES - Capacities as at June 1, 2014(thousand barrels/day)


Source: CAPP


AlbertaCanada.com. (July 2014). Economic Result. Retrieved from: http://albertacanada.com/business/overview/economic-results.aspx

Alberta Oil Magazine. www.albertaoilmagazine.com/tag/Upstream/

Business in Alberta. www.albertacanada.com/business/industries/rpb-news.aspx

Calgary Economic Development. (2006 though 2012). Annual Report. Retrieved from: www.calgaryeconomicdevelopment.com/about/annual-report

Calgary Economic Development. Calgary Employment Demand Forecast 2007-2017. (January, 2008) Retrieved from: www.google.ca/#q=calgary+economic+outlook+2007-2017

Calgary Economic Development. (January, 2014). Economy at a glance: Calgary’s advantages. www.calgaryeconomicdevelopment.com/EconomyAtAGlance-CalgarysAdvantage

Canadian Association of Petroleum Producers. Canada’s Petroleum Resources. www.capp.ca/energySupply/canadaPetroleumResources/Pages/default.aspx

Canadian Association of Petroleum Producers. Canadian and U.S. Crude Oil Pipelines and Refineries. www.capp.ca/getdoc.aspx?DocID=247758

Canadian Business Magazine. (February, 2015). Cheap Oil.

Canadian Energy Research Institute (CERI). CERI Commodity Report - Crude Oil (December 2014).

Conference Board of Canada (Winter, 2015). Economic Insights Into 13 Canada Metropolitan Economies. www.conferenceboard.ca

ERCB. Alberta’s Energy Reserves 2008 and Supply/Demand Outlook 2009-2018. Retrieved from: https://www.aer.ca/documents/sts/ST98/st98-2009.pdf

Government of Alberta. Alberta’s Oilsands. Retrieved from: http://oilsands.alberta.ca/economicinvestment.html

Government of Alberta. (July 2012). Economic benefits of increased market access. Retrieved from: www.oilsands.alberta.ca/FactSheets/economic_benefits_-_AB_oil_to_market_-_final.pdf+&cd=1&hl=en&ct=clnk&gl=ca

Hussain, Y. (February 2014). Alberta bitumen royalties to hit nearly $10-billion by 2014-15: forecast. The Financial Post. Retrieved from: http://business.financialpost.com/2012/02/10/alberta-bitumen-royalties-to-hit-nearly-10-billion-by-2014-15/

International Energy Agency. Statistics. www.iea.org/statistics/statisticssearch/report/?country=CANADA&product=oil&year=2011

Marketwired. (September 2013). New Study Projects Energy East Will Boost Economy Across Canada. TransCanada website. Retrieved from: www.transcanada.com/news-releases-article.html?id=1758069

National Energy Board. ARCHIVED - Estimated Production of Canadian Crude Oil and Equivalent. Retrieved from: http://www.neb-one.gc.ca/nrg/sttstc/crdlndptrlmprdct/stt/archive/stmtdprdctnrchv-eng.html

National Energy Board (2013). Canada’s Energy Future 2013 – Energy Supply and Demand Projections to 2035 – An Energy Market Assessment. Retrieved from: http://www.neb-one.gc.ca/clf-nsi/rnrgynfmtn/nrgyrprt/nrgyftr/2013/nrgftr2013-eng.html

National Energy Board. (2013). Winter Energy Outlook 2013-14 - Outlook Summary. Retrieved from: www.neb-one.gc.ca/clf-nsi/rnrgynfmtn/nrgyrprt/nrgytlk/tlkwntr2013/tlkwntr2013-eng.html

Nuttall, E. (January 2014). Outlook for Canadian oil and gas in 2014. Mining.com. Retrieved from: www.mining.com/web/outlook-for-canadian-oil-and-gas-in-2014-eric-nuttall/

Paynter. P., Yin,R. (February 2013) Calgary, Canada: A Global Energy and Financial Centre. Calgary Economic Development. Retrieved from: www.calgaryeconomicdevelopment.com/industries/financial-services/head-offices

PCensus: 2014 projections based on 2011 long form census

PSAC. Industry Statistics. www.psac.ca/business/industry-statistics/

The Calgary Herald. (December 2013). Calgary downtown office market demand falls. Retrieved from: www.calgaryherald.com/homes/Calgary+downtown+office+market+demand+falls/9295497/story.html

U.S. Energy Information Administration. Retrieved from: http://www.eia.gov/countries/country-data.cfm?fips=ca#pet

References:


WASHINGTON, DC

RALEIGH-DURHAM (2)

SUBURBAN MARYLAND

HALIFAX

NEW YORK CITY

ORANGE COUNTY DALLAS

HOUSTON

ATLANTA

WEST PALM BEACH (2)

BOSTON

PITTSBURGH

OTTAWA

CHICAGO (2)

DETROIT

GUELPH

MISSISSAUGA

MONTREALEDMONTON

REGINAWINNIPEG

CALGARYVANCOUVER

LETHBRIDGE

DENVER

RENO

LAS VEGAS

SAN FRANCISCO

LOS ANGELES (4)

NEW JERSEY

TYSONS CORNER, VA

SOUTH CAROLINA (2)

TORONTO (2)

QUEBEC CITY

TORONTO NORTH

CHARLOTTE

SAN DIEGO

SACRAMENTO

SAN MATEO

LONG ISLAND

FAIRFIELD/WESTCHESTER

PHILADELPHIA

TAMPA

COLUMBUS

AUSTIN

OAKLAND

CLEVELAND

ORLANDO

MONCTON

FORT LAUDERDALE

MIAMI

MINNEAPOLIS

INDIANAPOLIS

Transaction Services- Tenant representation, lease

acquisition and disposition- Investment acquisition

and disposition for owners and occupiers

- Landlord representation—all property types—office, industrial, retail, build-to-suit, land and multi-family

Consulting & Advisory Services- Portfolio review and analysis- Valuation and appraisal- Benchmarking- Transaction management- Asset rationalization- Mergers and acquisitions- Workplace solutions- Acquisitions and dispositions- Property tax services

Management Services- Project management- Property and operations review- Property/facility management- Tenant relations- Financial reporting- Lease administration- Operations consulting- Asset management- Portfolio management

Enterprise Solutions- Integrated services coordination- Transaction management- Optimization strategies- Portfolio lease administration- Project coordination and

reporting

Investment Management- Acquisitions- Asset management- Portfolio strategy- Capital repositioning

A Growing, Multinational Presence

avisonyoung.com ©2015 Avison Young (Canada) Inc. All rights reserved.

Partnership. Performance.

LONDON

THAMES VALLEY

FRANKFURT

MUNICH

DUESSELDORF

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,700 real estate professionals in 66 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.

Avison Young at a Glance Founded: 1978 Total Real Estate Professionals: 1,700+ Offices: 66 Brokerage Professionals: 600+ Property Under Management: >70 million sf

For more information on this white paper, please contact Avison Young:

Bill Argeropoulos 416.673.4029Principal & Practice Leader, Research (Canada) [email protected]

Anthony Scott 403.232.4344Research Manager, [email protected]

Mike Banister 780.702.5826Research Manager, Edmonton [email protected]

WASHINGTON, DC

RALEIGH-DURHAM (2)

SUBURBAN MARYLAND

HALIFAX

NEW YORK CITY

ORANGE COUNTY DALLAS

HOUSTON

ATLANTA

WEST PALM BEACH (2)

BOSTON

PITTSBURGH

OTTAWA

CHICAGO (2)

DETROIT

GUELPH

MISSISSAUGA

MONTREALEDMONTON

REGINAWINNIPEG

CALGARYVANCOUVER

LETHBRIDGE

DENVER

RENO

LAS VEGAS

SAN FRANCISCO

LOS ANGELES (4)

NEW JERSEY

TYSONS CORNER, VA

SOUTH CAROLINA (2)

TORONTO (2)

QUEBEC CITY

TORONTO NORTH

CHARLOTTE

SAN DIEGO

SACRAMENTO

SAN MATEO

LONG ISLAND

FAIRFIELD/WESTCHESTER

PHILADELPHIA

TAMPA

COLUMBUS

AUSTIN

OAKLAND

CLEVELAND

ORLANDO

MONCTON

FORT LAUDERDALE

MIAMI

MINNEAPOLIS

INDIANAPOLIS

Transaction Services- Tenant representation, lease

acquisition and disposition- Investment acquisition

and disposition for owners and occupiers

- Landlord representation—all property types—office, industrial, retail, build-to-suit, land and multi-family

Consulting & Advisory Services- Portfolio review and analysis- Valuation and appraisal- Benchmarking- Transaction management- Asset rationalization- Mergers and acquisitions- Workplace solutions- Acquisitions and dispositions- Property tax services

Management Services- Project management- Property and operations review- Property/facility management- Tenant relations- Financial reporting- Lease administration- Operations consulting- Asset management- Portfolio management

Enterprise Solutions- Integrated services coordination- Transaction management- Optimization strategies- Portfolio lease administration- Project coordination and

reporting

Investment Management- Acquisitions- Asset management- Portfolio strategy- Capital repositioning


avisonyoung.com ©2015 Avison Young (Canada) Inc. All rights reserved.

Partnership. Performance.

LONDON

THAMES VALLEY

FRANKFURT

MUNICH

DUESSELDORF

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,700 real estate professionals in 66 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.

Avison Young at a Glance Founded: 1978 Total Real Estate Professionals: 1,700+ Offices: 66 Brokerage Professionals: 600+ Property Under Management: >70 million sf

avisonyoung.com


© 2015, Avison Young (Canada) Inc.

avisonyoung.com

For more information on this white paper, please contact Avison Young:

Bill Argeropoulos 416.673.4029Principal & Practice Leader, Research (Canada) [email protected]

Anthony Scott 403.232.4344Research Manager, [email protected]

Mike Banister 780.702.5826Research Manager, Edmonton [email protected]

Documents

An Avison Young White Paper...Alberta’s Place in the Canadian Energy Economy The Alberta energy sector is the province’s primary economic driver representing 24.6% of gross domestic