Margins Remain Low
Gasoline refiner margins' were significantly lower than 2012 and 2011 for the duration of the third quarter. Parkland's exposure is weighted heavily towards gasoline.
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Edmonton refiners' margins are approximated by subtracting the wholesale prices charged by refiners in Edmonton from the cost of Edmonton Par crude on a cents per litre basis. Note that data is current as of September 30, 2013.
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Retail Margins
Kent Marketing Services maintains a survey of Canadian wholesale and retail prices that investors may find useful to review from time to time. Their Petroleum Price Data can be accessed from their main website www.kentmarketingservices.com.
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Rig Count Data Now Available
The CAODC average monthly rig count data for September was not available when the Business Driver Update was sent out on October 8th. The CAODC reported 358 active drilling rigs for September 2013 compared with 350 drilling in September 2012. Parkland's Commercial activity is geared toward natural gas well drilling, which is currently less active than oil well drilling. August 2013 saw 818 oil wells drilled to completion compared to 72 gas wells drilled to completion.
Average monthly rig count, as reported by the Canadian Association of Oilwell Drilling Contractors ("CAODC") is shown above-right and is used as a proxy for the health of Canada's resource industry. Rig counts are publically available through the CAODC's public website:www.caodc.ca/statistics/rigcounts.html |
Temperatures Starting to Dip on Both Coasts
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Heating degree days (HDD) are starting to increase on both coasts as fall temperatures set in. Victoria is within the 5 year min/max range; however, Halifax is below the 5 year minimum range.
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Data is current as of September 30, 2013. Please note that the Halifax station has now moved to Environment Canada's new NAV system and the Victoria station has changed to the University of Victoria. Heating degree days (HDD) correlate directly with the heating requirements of homes and businesses. For more information please review the "Economic Developments and Outlook" section of Parkland's most recent MD&A.
Source:www.climate.weatheroffice.gc.ca/climateData/canada_e.html
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