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Alberta’s Inefficiency Highlighted by Unproductivity

A new study was recently released which showed that Alberta had the highest unproductivity rates compared to other North American jurisdictions. Although the province’s growth is high, it has been driven by increases in labour, rather than improvements in productivity of individual workers. The study (see below for the article) goes into other aspects of productivity, but the industrial numbers are of concern here.

‘Job machine’ Alberta dead last in labour productivity among oil regions: report

The numbers are not a surprise to people involved in Alberta’s (mostly) extractive industries. Alberta suffers from more inclement weather, and crucially weather swings, that most of the jurisdictions surveyed. Productivity at most Oilsands facilities averages 3 hours for every 10 hours paid, in the estimation of this blogger (based on direct knowledge of the system). In addition, the increase in labour demand has led to the hiring of inexperienced workers, who typically take a few months to come up to speed but are charged with producing at full capacity right away. Finally, most industrial sites in Alberta are in fairly remote locations. The supply chain issues around construction materials in particular, result in further unproductivity per dollar spent.

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Solar’s Potential Eclipse of Oil Makes Sense

According to Royal Dutch Shell, solar could overtake oil as the world’s dominant energy source within the next 50 years. While analysts have long debated how much and how quickly solar could displace oil, this is probably the first time that a supermajor oil company has – through its own analysis – come up with quantifiable numbers. Chevron and Exxon-Mobil, two other supermajors who are increasing their renewable portfolios at exponential rates, also foresee a similar picture, although not quite as quickly.

http://business.financialpost.com/2013/02/28/solar-may-eclipse-oil-in-fifty-years-shell/?__lsa=1200-56d8

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Energy Efficiency: The Key to Stalling Adverse Climate Change

A recent study commissioned by 20 governments through the Climate Vulnerable Forum has identified climate change as one of the major causes of death for the foreseeable future. According to the report, by 2030 more than 100 million people will die and global economic growth will be cut by 3.2% if the world fails to tackle climate change due to greenhouse gases caused by the burning of fossil fuels. Usually with reports like this, the accusing eyes of the world turn to the oil industry and in particular the Oilsands, but this is hardly drilling deep – pardon the pun – to the heart of the real issue.

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