Massive Shale Oil Prospect Discovered in Northwest Territories, Could Increase Demand for Foreign Labour

The Canol shale formation ranges from the Mackenzie River, pictured above, in the east, to the MacKenzie Mountains to the West. (David Adamec)

A new shale oil prospect in the Northwest Territories potentially rivals the Bakken formation under Saskatchewan, Montana and North Dakota in its recoverable oil resources.

The Canol shale formation could contain two to three billion barrels of recoverable oil according to David Ramsey, Minister of Industry and Transportation for the Northwest Territories. If the estimates are proven accurate, it would increase Canada’s total proven oil reserves by over one and a half percent, to 182 billion barrels.

The find has the potential to create significant economic opportunity for Northwest Territories communities and those ready to brave Canada’s subarctic north. First Nations communities are hopeful that the development will bring jobs to the region, while also concerned about the damage it could do to the pristine northern wilderness.

Temporary foreign workers could play a big role in the extraction of the new oil find, given oil and gas companies are already not able to meet their labour needs in remote and inhospitable resource basins, ranging from northern Alberta to central Saskatchewan, to oil platforms off the shore of Newfoundland.

Last month, the federal and Alberta provincial governments jointly announced a pilot program to expedite the issuance of work permits to foreign workers skilled in in-demand trades like welding, and the federal government is planning to add a skilled trades stream to the Federal Skilled Workers Program to allow more people with the skills demanded by Canada’s resource sectors to become permanent residents.

Canadian Government Pushing Need for Pipeline Construction

Canadian-based Enbridge Inc operates the largest pipeline system in the world. The company is hoping to get approval to build a pipeline from Alberta through British Columbia to the West Coast. (Enbridge Inc)

Federal Minister of Natural Resources Joe Oliver said that building more pipelines to Canada’s coasts and border is vital to the country’s economic well-being.

The Minister spoke to the Great Saskatoon Chamber of Commerce on Thursday, where he said that the success of Canada’s energy sector depends on the construction of more pipelines.

“Our government believes it is critical that Canada build pipelines west, south and east to ensure we have customers for our energy projects,” the Minister said at the luncheon.

The federal government in recent days has been defending the Enbridge Northern Gateway Pipelines Project, which is a plan to build a pipeline from Alberta to Canada’s Pacific coast to allow Canadian energy exports to Asia. The plan has faced criticism from a coalition of environmental groups and aboriginal activists, who say they don’t want a pipeline to go through British Columbia.

The government insists that transporting oil and gas by pipeline is the safest and cheapest method available, and that the country’s regulators have the tools necessary to keep the risks at acceptably low levels. Prime Minister Harper described the Enbridge pipeline this week as being “in the vital interests of Canada”.

The oil and gas industry, which depends on pipelines to transport its products, constitutes a major part of Canada’s natural resource sectors, which in turn produces over 50 percent of the country’s export revenues, amounting to over $200 billion in exports each year.

The resource sectors played a significant role in the average net worth of Canadian households surpassing that of American households for the first time in history last year, as rising commodity prices buoyed the value of the Canadian dollar.

Rate of Self-Employment Decreases for Sons of Immigrants, Increases for Daughters -Study

Self-employment rates of Canadian-born sons of immigrant parents are lower than that of their fathers, while those of Canadian-born daughters of immigrants are higher than that of their mothers' generation. (Eric Ward)

A study on intergenerational changes in self-employment rates among immigrant parents and their children finds that the Canadian-born sons of immigrant parents are less likely to be self-employed than their fathers, and are likely to choose self-employment for different reasons, while the Canadian-born daughters of immigrant parents are more likely to be self-employed than their mothers.

According to the Statistics Canada study, 12 percent of Canadian-born sons of immigrant parents aged 25 to 44 were self-employed in 2006, while 14 percent of immigrant fathers were self-employed at the same age in 1981. For Canadian-born daughters of immigrant parents, the self-employment rate increased to 7 percent, from 6 percent for their immigrant mothers in 1981.

The factors “pushing” individuals into self-employment differed between second generation and first generation men as well.

Among immigrant fathers in 1981, the main motivation for choosing self-employment was lack of employment opportunities, while among their Canadian born sons in 2006, there was a higher likelihood that expectations of greater earnings motivated them to choose self-employment.

The study finds that the generational decline in self-employment rates among the Canadian-born sons of immigrant parents is due to a larger trend in the typical life course events of Canadian men. Canadian men aged 25 to 44 have less work experience, are less likely to be married and have fewer children than their fathers when they were at their age.

Conference Board of Canada says Canada Needs More Investment to Utilize Skilled Work Force

More investment into capital equipment like industrial robots is needed to boost productivity according to an Op-Ed by the Conference Board of Canada (KUKA Roboter GmbH, Bachmann)

A new Op-Ed by the Conference Board of Canada, a non-partisan Canadian economic think tank, makes the case that Canada’s tepid productivity growth over the last three decades is due to an insufficient expansion of physical capital.

The report lauds the quality of Canada’s labour force:

Canada can boast one of the top workforces in the world. Compared with many other developed countries, Canada has a very high proportion of college- and university-educated workers in the labour force. Only Finland surpassed Canada in the Conference Board’s How Canada Performs analysis in Education and Skills– our best showing across six socio-economic categories.

And argues that Canada’s workers, while well-educated and capable, have not been given the “machinery and equipment, technology, and infrastructure” needed to maximize their productivity.

It notes that the ratio of physical capital to human capital decreased dramatically from the mid 1980s onward, and this corresponded with a slow down in productivity growth -from 2.8 percent per year in the 1962 to 1984 period, to just 1.2 percent per year in the 1984 to 2010 period.

The report gives several reasons for the decrease in investment in physical capital:

  • A weakening Canadian dollar in the 1990s and early 2000s, which made foreign-made capital equipment more expensive for Canadian companies
  • The introduction of the capital tax, a tax on the value of a company’s taxable capital, in 1985
  • Trade barriers like tariffs between Canada and other countries
  • Insufficient investment in Canada’s public infrastructure
  • A weak venture capital market which has prevented a greater number of successful firms from being launched in Canada

The authors note that there have been improvements in all of these areas in recent years, with a stronger Canadian dollar since 2003, the elimination of the capital tax in 2006, large investments by the federal government into infrastructure projects since 1999, the elimination of tariffs on machinery and equipment in 2009, and recent inter-provincial agreements to reduce domestic trade barriers, like the TILMA between BC and Alberta.

They say these improvements have resulted in strong growth in capital investment since 2005, including a 25 percent increase in the last two years.

The report recommends more work to develop the venture capital market, improve advanced education, and reduce trade barriers, as well as increasing infrastructure investment, to enhance future productivity.

UBC President Urges Canada to Work to Attract Asian Students

UBC's Okanagan campus. The number of international students in Canadian universities has doubled in the last decade. (Cyprien Lomas)

A new report commissioned by the influential Canadian Council of Chief Executives says Canada must succeed in attracting Asian international students and building links to Asian academic institutions.

The report by the president of the University of British Columbia, Stephen Toope, says that emerging Asian economies like China and India are making significant investments in building academic links to the rest of the world, and that Canada must do the same and work to attract Asian students and researchers while promoting study abroad programs for Canadian students to build institutional partnerships.

Toope recommends ten steps to position Canada as the premier destination for Asian students and researchers and partner of choice for Asian academic institutions:

1. A cohesive international education strategy- creating a unified national strategy that incorporates and coordinates the activities of different governmental and non-governmental parties to more effectively promote Canadian academic institutions.

2. Build the Canadian brand- a collaborative approach by Canadian universities, the Canadian private sector, and local, provincial and federal governments, to promote the Canadian brand abroad to prospective international students, researchers and institutional partners.

3. Targeted recruitment of Asian students and researchers- initiating a recruitment campaign to attract Asian students and researchers, particularly in India and China, in order to cement Canada’s position as a premier destination for studying abroad.

To attract top talent, adding to the retinue of scholarships offered by Canadian universities and governments, and expanding existing scholarship programs like the Vanier Canada Graduate Scholarships and Banting Postdoctoral Fellowships.

4. Two-way short term mobility- increasing the number and scale of study-abroad programs for Canadian students to give young Canadians international experience and to promote an image in foreign countries of Canada as a country that is globally minded and committed to future educational advancement.

5. Develop key institutional partnerships- building meaningful academic links to Asian institutions that demonstrate to foreign countries that Canada is committed to becoming their partner, and not just their recruiter.

6. Internationalize curricula in Canada- in order to internationalize Canadian students, introduce more Asian content into Canadian educational curricula, “from kindergarten to university”.

7. Leadership from the private sector- partnerships between different levels of government and the private sector to fund educational initiatives like study-abroad programs and to provide internships for international students studying in Canada.

8. Invest in international research collaboration at scale- creating a large, federally funded, global research fund, that is allocated competitively by granting councils, to fund international research collaboration that increases participation by Canadian students and faculty in international research projects.

9. Knowledge exports- Continued collaboration by Canadian universities in “curriculum development, pedagogy, research and mentoring university administrations” with Asian universities looking to develop their academic offerings, in order to build on Canada’s reputation as a provider of high quality education and to expand the knowledge export industry.

10. Leverage international alumni networks- use international alumni of Canadian universities in marketing campaigns to promote Canada and its academic institutions abroad.

The report argues that Canada must broaden academic connections to Asia because it increases the country’s cultural and economic links to rapidly developing Asian economies which will become increasingly important to Canada’s future economic well being.

Toope points out that international students also have a positive economic impact through the $6.5 billion they spend each year on tuition, accommodations and other expenses.

Toope says that thanks to recent immigration policy changes that make it easier for international students to receive work permits and permanent residence in Canada after graduating, many international students are choosing to stay in Canada after completing their studies, where they contribute their skills to the Canadian labour market.

Vancouver Sees 12 Percent Drop in Housing Prices in July from Same Time Last Year

Year on year home prices declined 12 percent in Vancouver in July

Vancouver, one of the most popular Canadian housing markets for the country’s immigrants, saw the average value of real estate purchases in July drop 12 percent from the same period last year, according to data collected by Bloomberg News.

The city’s real estate prices have boomed in recent years due in large part to foreign investment from China and home purchases by Chinese immigrants, who are the city’s largest foreign born ethnic group.

With a cooling Chinese economy and Vancouver home prices that have risen to become the highest in Canada though, many this year have been warning that Vancouver’s real estate market is in a bubble.

Toronto also saw a slow down in its real estate market, although it was much more moderate, with year on year home purchase volume decreasing by 1.5 percent in July.

Guinean Deported In Spousal Sponsorship Case Marries New Canadian Woman

Soumah, who was deported back to the West African country of Guinea this year, is appealing the deportation order based on the results of a new paternity test that his lawyer says shows he did not lie about not having a dependent (CIA)

A Guinean man who was deported from Canada after his Canadian wife and sponsor for permanent residence alleged that he lied to her about a child he had fathered and walked out on her three weeks after arriving in Canada has married another Canadian woman, it has emerged.

Lainie Towell married Fode Mohamed Soumah, a native of Guinea and ten years her junior, and sponsored him for immigration to Canada in 2007. Soon afterward, Towell learned in a phone call from a mutual friend in Guinea that Soumah had fathered a child with a 15 year old girl in his home country. She also discovered emails that Soumah had sent to his friends that led her to believe that Soumah was the baby’s father.

The Immigration and Refugee Board agreed with Towell and ordered Soumah deported in 2009 for not having declared his dependent to Towell during his application for permanent residence. In February 2012, after three years of appeals, Soumah was deported from Canada.

The new development in this story is Soumah’s marriage to another Canadian woman, Cassandre Blier, who he met 16 months after his marriage with Towell ended.

Blier and Soumah filed a lawsuit on July 23rd seeking to ban the publication of Towell’s book about the events, How to Catch an African Chicken: A Canadian Woman’s Outrageous but True Story of Marriage Fraud. A Superior Court of Québec justice ordered the sale and marketing of the book halted for 30 days to prevent potential damage to Soumah’s reputation.

The lawyer representing the married couple in the suit, Denis Roumestan, says that a paternity test proves with 100 percent certainty that Soumah is not the father of the child. He also said that Soumah is appealing the deportation order in light of the paternity test.

Towell is not backing down, insisting her book is an accurate account of events, and says she feels sorry for Soumah’s new wife and believes she is a victim.

Statistics Show Bogus Asylum Seekers Racking Up Health Care Costs

George Dumont hospital in Moncton. The Canadian government spends approximately $20 million a year on health care for asylum seekers. (Stu Pendousmat)

Immigration Canada released statistics on health care spending for refugee claimants yesterday to bolster its case that the recent scaling back of free health care for asylum seekers was necessary.

The statistics show that refugee claimants from Mexico, Hungary, Columbia, the United States and Jamaica, all countries that do not have a record of human rights abuse and persecution, received millions of dollars worth of Canadian health care services for free through the Interim Federal Health Program (IFHP), and proportionally more than asylum seekers from any other country.

Immigration Canada’s data shows that health care costs for 8,819 Mexican asylum seekers came to $7 million last year, for 6,749 Hungarians to $4.4 million, for 4,583 Columbians to $2.6 million, for 3,790 Americans to over $1.4 million and for 809 Jaimaican asylum seekers to $808,000.

Almost all of the claimants from these countries end up not attending their refugee hearings, withdrawing their refugee application, or having their claim rejected by the Immigration and Refugee Board (IRB) of Canada.

Immigration Minister Jason Kenney said that this made it necessary to reduce the range of free health care services provided to asylum seekers to prevent abuse of Canada’s refugee system.

“That does underscore the reasons why we’ve reformed the Interim Federal Health Program. There’s no doubt that it has been a draw factor for many false asylum claims,” commented Mr. Kenney.

Under changes to Canada’s Refugees System with the enactment of Bill C-31 on June 11th, free pharmaceutical, vision and dental care for refugee claimants was eliminated, which supporters of the cuts argue is fair as none of these services are available to Canadian citizens through Medicare.

The extent of the abuse of the Interim Federal Health Program was highlighted by Minister Kenney as he cited interviews Canada Border Service agents have conducted with some Hungarian asylum seekers when they were withdrawing their applications for refugee status, in which the claimants admitted that they had come to Canada to receive free dental care for their children, and now that they had gotten it, there was no reason to stay.