Edmontonʼs Economic Future: More Than Just Oil? · Real Personal Income per Capita ($ 2002) Calgary Edmonton Vancouver Ottawa Toronto Montreal Real income gains since 1987: 1.Edmonton

EDMONTON ECONOMIC DEVELOPMENT CORPORATION

LEADERSHIP INNOVATION RECOGNITION

Edmonton’s Economic Future: More Than Just Oil? April, 2012


•  World is developing a 2 speed economy •  Serious economic and financial challenges continue

in U.S. and certain European countries •  Continued strong growth in the developing world

•  Edmonton also developing a 2 speed economy •  Businesses focused on Edmonton and northern

Alberta – boom times comparable to 2006-08 •  Businesses with markets outside of Alberta –face

soft markets, compounded by Alberta’s strong economy

Overview

Current Economic Climate


•  Edmonton’s economy is more diversified than ever

Overview

Current Economic Climate

•  Alberta’s economy is more dependent than ever


•  Where Edmonton’s economy is today •  Edmonton’s economy of the future

•  Opportunities •  Challenges

Today’s Discussion


Edmonton’s Economic Dashboard

Income / GDP Retail Sales

Office Vacancy

Insolvency Unemployment

Housing Air Service Inflation

Where We Are Today


Where We Are Today

$23,000

$28,000

$33,000

$38,000

$43,000

$48,000

Real Personal Income per Capita ($ 2002)

Calgary Edmonton Vancouver Ottawa Toronto Montreal

Real income gains since 1987: 1. Edmonton – 42% 2. Calgary – 40% 3. Montreal – 26% 4. Ottawa – 19% 5. Vancouver – 16% 6. Toronto – 3%

Source: Conference Board of Canada


Where We Are Today

Source: Conference Board of Canada

3%

4%

5%

6%

7%

8%

9%

Unemployment Rate Recovery from the 'Great Recession'

Edmonton Canada Canadian CMA Average

Full employment


Where We Are Today

Source: Conference Board of Canada, Statistics Canada, various national statistical agencies

Calgary

Edmonton

Vancouver Winnipeg

Halifax

Ottawa-Gatineau

Toronto

Montreal

Saskatoon

Austin, TX Columbus, OH

Brisbane, AUS

Vienna, AUT

Munich, GER

Leeds, UK

$35,000

$40,000

$45,000

$50,000

$55,000

5% 6% 7% 8% 9% 10%

Aver

age

Inco

me

(CA

D)

Unemployment Rate

Unemployment and Average Incomes Major Canadian and Select Global Mid-Sized Cities


Where We Are Today


Core Sectors Driving the Economy

•  Energy – Heavy Oil •  Support Services •  New Technologies

•  Health Care •  Education •  Advanced Technology •  Financial Services •  Retail and Wholesale Trade •  Government

Where We Are Today


Edmonton’s Economic Dashboard Income / GDP Retail Sales

Vacancy

Insolvency Unemployment

Housing Air Service Inflation

Where We Are Today


•  Global Energy Sector •  World demand for energy •  Role of oil and gas •  Where Canada/Alberta fits in

•  Value Added from Oil Sands •  Oil Sands Production •  Oil Sands Upgrading •  Petrochemical Industry •  Downstream Industries

Heavy Oil’s Impact on Edmonton


Alberta dominates the world of bitumen and extra heavy oil reserves

Global Energy Sector

0

200

400

600

800

1000

Canada Venezuela Russia Kazakhstan United States

Bill

ions

of B

arre

ls

Bitumen and Extra Heavy Oil Reserves

Proven Ulimately Recoverable


Bitumen

Synthetic Crude Oil

Consumer and Industrial Products

Fuels and Petrochemicals

Products Processes

Oil Sands Plants

Upgraders

Refineries and Petrochemical Plants

Downstream Industries

Value Added from Oil Sands


Oil Sands Production

0

50

100

150

200

Under Construction Regulatory Approvals in Hand Under Development

Inve

stm

ent (

Bill

ions

$)

Current and Planned Oil Sands Investment

Mining In-Situ

Current and planned investment total of $290 billion

Source: Oil Sands Developers Group, March 2011


Conclusion

•  Edmonton has brighter economic future than almost any city of its size in the world

•  Can’t get complacent •  Need to seize the opportunities •  Need to address the challenges

Edmonton’s Economy of the Future

Documents

Edmontonʼs Economic Future: More Than Just Oil? · Real Personal Income per Capita ($ 2002) Calgary Edmonton Vancouver Ottawa Toronto Montreal Real income gains since 1987: 1.Edmonton