CANADIAN OILPATCH / FINANCIAL
INVESTMENT IN OIL AND GAS SECTOR TO BOOST ALBERTA'S ECONOMY IN 1997, SAYS BANK OF MONTREAL
Stronger capital investment in Alberta next year will help the economy grow 3%
in 1997 from a projected 2.25% this year, according to Tim O'Neill, Chief
Economist, Bank of Montreal.
``Investment in oil sands facilities will continue at Fort McMurray, with
Syncrude, the leading producer of synthetic crude, planning to spend $2
billion over the next five years to develop two new mines,'' said Mr. O'Neill,
a guest speaker at the Canada Mortgage and Housing Corporation's annual
Housing Outlook Conference held in Calgary today.
In the chemical industry, construction will start next year on a $1.2
billion ethylene and polyethylene plants at Novacor's Joffre site by Novacor
and Union Carbide. Separately, Union Carbide plans to develop a polyethylene
plant at its existing facility in Prentiss. In addition, construction of the
Northern Border pipeline should start next year.
`All these developments will not only boost non-residential
construction, but will eventually provide additional markets for Alberta's
crude oil and natural gas. In particular, the new pipeline will ease the
current bottleneck in natural gas shipments to the U.S. midwest, raising
capacity by 40%,'' said Mr. O'Neill.
In the Bank's economic outlook for 1997, Mr. O'Neill forecasts housing
starts will increase from an expected 16,000 this year to 18,000 in 1997 and
that the unemployment rate will fall from approximately 7.1% to 6.4% next
year.
``The province should also benefit from the significant easing in federal
monetary policy this year, and consumer spending and residential construction
are also expected to accelerate in 1997.'' |
