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JVViews: February 2013 Issue


Luncheon Reviews

March Pub Night

Volunteers Needed!

Petroleum Accountants Society (PASC) Course

Acquisitions of Control and Joint Ventures: Structure Matters

eStudies and Web Based Learning

Looking for a New Opportunity?

PJVA LinkedIn® Group




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Luncheon Recap

January 2013

Investing Where the Puck is Going
with Brad Gustafson, B.Sc. CFP

Brad's talk focussed around demographics and where to invest in the future. There are 4 distinct and different generations today:
  • Eco-Boomers: ages 12 - 32, birth rates were so much lower that it does affect the economy
  • Gen X: 33 to 45, the most miserable people due to managing eco-boomers with their completely different mentality. They Google everything, are not martyrs and want to leave work at 3:00 pm.
  • Baby Boomers: 46 to 65 year old range, still control the elections and the money because they are majority in numbers.
  • 'Lawrence Welk' age: 66+, will be retiring in 5 yrs, creating the largest surplus of jobs
We've seen a resurgence of rock stars, Vegas and fashion trends. From 2000 - 2010 was a credit crash, so Disney saw this and start building adjoining rooms in their resorts (good stock tip!)

Watch for the aging demographics (baby boomers) and what they like in order to determine where to put your money:
- Sports cars (the car companies, not the cars)
- Vacations - cruiselines such as Carnival, Royal Caribbean
- Golf courses
- Bird seed, pet stores & pet insurance (their pets are like their children were)
- Casinos, restaurants, hard liquor alcohol (scotch and bourbons)
- Renovations on the house
- New furniture
- Banks
- Retiree drugs like Viagra and relating to arthritis and sleep deprivation

A few demographic tidbits that might help figure out future investing:
- Women are living longer than the men by 8 years
- Divorced couples die 9 years younger than their married counterparts
- Canadians retire earlier than Americans
- Spending peaks at 80 years (by 2014 the first Boomers will be at that age), then there's a deflation issue because they stop spending

Where to Invest:

Canada only provides 2% of the world's money supply so it's not a great long term choice. Increase your foreign content i.e. potash, farmland, beef, agriculture in emerging markets by 2015 will be thriving places to invest.

Longer term investments are good in Mexico; in 13-18 years in South Africa, Philippines and India. Maybe by 2020 North America will be a viable market again.

When it comes to Canadian Real Estate - 20 to 44 year olds will still buy up to 2015; 40-45 ages are the highest population in AB with 1.24 million population.

Boomers will be selling to downsize, so with lots of choices, prices should be good for Gen X'ers.

Predictions: Stay away from bookstores, beer and big box stores, unless you are looking for a job as a Walmart Greeter.


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February 2013

Oil Market Fundamentals and the WTI to Heavy Price Differentials
with Martin King, First Energy Capital

February Presentation (member only access)









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March Pub Night

Ceili's on 4th
March 7, 2013
4:30 pm

Pay-as-you-go or run your own tab.

A great opportunity to mingle with your peers, find a mentor, or get to know industry if you're new!

Please click here to RSVP so we have an idea of numbers.

SEE YOU ALL THERE!!

For any questions or suggestions on locations, please contact Social Director, Rein Evelein at rein.evelein@encana.com.



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Volunteers Needed!

The JV Agreements Certificate Program requires your assistance. Most of the commitment involves answering questions from MRU and amending the appropriate documentation as required, including content and exam questions. Please contact Catherine Scully, cscully@crescentpointenergy.com.


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Petroleum Accountants Society (PASC) Course

Wednesday April 24, 2013
8:00 am until noon
Pandell Training Centre, Suite 610, 700 - 6 Ave SW, Calgary

Course Overview: PASC's Intro to the Oil Sands

This is the first in a series of new PASC developed Oil Sands Accounting courses, and is an excellent introduction to the Oil Sands Mining and In Situ Bitumen Production. The course begins with a geological background, delivers a non-jargon examination technical aspects, presents a comprehensive discussion of the domestic and international factors that affect project scope and viability decisions, followed by getting the final products to market, and ending with site reclamation.

The course is intended for both technical and non-technical interested in learning about the business side of bitumen extraction. Accountants, Strategic and Business Planners, Administrators and Geo-Science employees wanting a deeper understanding of business side of bitumen production will be interested in this course.

A great deal of depth is packed in to this half day course and will be an excellent use of everyone's valuable time.

Course Outline:
  • Industry Overview
  • Bitumen Geology
  • Extraction Methodologies
  • Bitumen Projects - The Application Process
  • Refining and Upgrading Economics in a Global Economy
  • Upgrading - Should we do it all in Alberta?
  • Transportation
  • Environmental Issues
  • Reclamation Complexities, Planning and Execution.
The fee for this half day course is $275 for PASC members and $350 for non-members.

PASC/CAPL/CAPLA/CAPPA/PJVA Members: $275 + GST

Convenient online registration is available. The PASC office may be reached at (403) 262-4744.




Feature Article

Acquisitions of Control and Joint Ventures: Structure Matters

By Alicia Quesnel

It is, we are told by the Prime Minister himself, the "end of an era" for reviewable acquisitions of control of "Canadian businesses" by state-owned (or influenced) enterprises ("SOE"). New guidelines have been enacted under the Investment Canada Act ("ICA") that will make it much more difficult for SOEs to acquire control of Canadian businesses in any sector. And only in "exceptional circumstances" will an SOE be entitled to make a reviewable investment to acquire control of an oil sands business. For the future development of the Canadian unconventional resource sector and likely other sectors that are currently dependent upon foreign capital (which is currently most readily available from SOEs), "joint ventures" rather than "out and out" mergers or acquisitions will prevail.

Read full article >>

Source: on record, a publication of BD&P, used by permission.



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eStudies and Web Based Learning

Need a refresher on drafting or working within a CO&O? Sign up for PJVA's e-Studies CO&O course to familiarize yourself with parts of the CO&O you may not encounter in your day-to-day and hone your understanding of the commercial aspects that can impact your project or operation. Do you know someone who would benefit from learning more about the CO&O that governs their asset or operation? Direct them to the PJVA eStudies home page to learn more!



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PJVA LinkedIn® Group

PJVA is now on LinkedIn®, the world's largest professional network. It's a great way to stay connected and exchange ideas with other PJVA members and industry professionals.

Click here to join the discussion!
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Looking for a New Opportunity?

Check out the PJVA Job Board for recent postings.


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PJVA was incorporated in 1985 to represent individuals and organizations involved in petroleum joint ventures. JVViews is published to keep members informed about upcoming PJVA and industry events, courses and seminars offered and/or sponsored by PJVA and current projects being facilitated by the Association.