Sirona Biochem: The Leader in Carbohydrate Stabilization Technology
Sirona Biochem: The Global Leader in Carbohydrate Stabilization Technology
– Momentum Public Relations –
Sirona Biochem (SBM:tsxv) is a proactive development and discovery stage based biotech firm with an R&D lab situated in Paris, France. The biotechnology enterprise is headquartered in Vancouver, British Columbia in Canada, and is world renowned for its state of the art fluorination chemistry technology. Their cutting edge platform is currently used to create cosmetic products that are both safe and effective for human use and consumption, as well as a plethora of pharmaceutical drugs.
Moreover, their leading edge compounds are either acquired by or licensed by multinational conglomerates in return for royalties, milestone payments, and/or marked upfront payments. It should also be noted that their platform focuses on the molecular stabilization of carbohydrates; which is noteworthy because carbohydrate based drugs are one of the most commonly prescribed drug families in the United States. De facto, some of the most commonly prescribed carbohydrate based drugs in the United States include Abbott’s Biaxin, Pfizer’s Zithromax, and GlaxoSmithKline’s Lanoxin.
In addition, Sirona Biochem currently has two licensing agreements with two multibillion dollar companies; namely Valeant Pharmaceuticals International (VRX:tsx) and Wanbang Biopharma. Valeant was founded in 1960 in Laval, Quebec, Canada and generated revenues of 2.73 billion U.S. in Q2 of 2015. What’s more, Valeant recently licensed a safe and innovative skin lightener, with Sirona Biochem to reap several millions in royalties in the near future from the licensing deal.
As for Wanbang Biopharma, the company was founded in China in 1998 and is a part of Fosun International (9.4 billion in U.S. revenue). The corporation focuses on the development of pharmaceutical drugs used to treat diabetes and associated cardiovascular diseases. Wanbang Biopharma also recently acquired the exclusive rights to sell the SGLT2 inhibitor that Sirona Biochem developed to treat type 2 diabetes. With the exclusive rights, Wanbang Biopharma will be able to sell the inhibitor in the People’s Republic of China, with $9.5 million in U.S. payments being awarded to Sirona Biochem in the form of milestone and upfront payments; with a percentage of total sales also being awarded to the pharmaceutical company in the form of perpetual royalties.
In regards to the skin lightening market, it is currently focused in the Asian Pacific regions and Japan, with the booming market expected to generate over 20 billion U.S. in revenue by 2018; with an annual growth rate projected at 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. However, many of the skin lightening products currently being sold globally contain malevolent compounds; including DeoxyArbutin, Arbutin, and Hydroquinone. Due to the controversy and health concerns surrounding the aforementioned skin lightener compounds products containing these compounds are strictly regulated and even outright banned in certain countries.
Fortunately, Sirona Biochem has created a safe alternative compound known as TFC-1067 to resolve these issues. TFC-1067 is not only safe but also boasts 8 times the efficacy of DeoxyArbutin. Given the numerous benefits that TFC-1067 provides over its competitors, multinational cosmetic conglomerates like Proctor and Gamble, Allergan, L’Oreal, and Amore Pacific Corporation with marketed skin lighteners are interested in Sirona’s leading edge compound.
Industry analysts have predicted that the global anti-aging market is expected to reach nearly $300 billion by 2015. Interestingly, Sirona is developing unique regenerative compounds based on research conducted by Professor Arthur DeVrie in the late 1960s. Essentially, his research found that the reason why Antarctic fish were able to survive in harsh, subzero temperatures was due to blood serum glycoproteins. Inspired by Professor Arthur DeVrie’s monumental discovery, Sirona Biochem is currently producing a family of regenerative, anti-aging, and naturally occurring compounds that are based on the antifreeze and anti-aging glycoproteins
Furthermore, in vitro studies have shown that these glycoproteins have a protective effect in fibroblasts against a myriad of stresses caused by nutrient depravation, oxidation, and UV light; all of which contribute to the visible signs of aging.
As Sirona Biochem continues to work diligently to harness the full protective and restorative properties of these glycoproteins the company is currently looking to collaborate with several global multinationals to further characterize and develop these glycoproteins for a myriad of commercial applications. In addition, their early stage partnerships with many prominent entities will allow Sirona Biochem to provide added value to their shareholders by maximizing their ROI. Another benefit of their ongoing projects is that they have a very short time to approval; with FDA approvals not being required.
If you would like to learn more about the world leader in carbohydrate chemistry commercialization please visit here.
- Published in Blog, Life Sciences, Sirona Biochem
Trudeau’s Sunny Ways – Meet Tough Choices
Sunny Ways – Meet Tough Choices
– Momentum Public Relations –
Sunny Ways. Newly elected Canadian Prime Minister Justin Trudeau loves to communicate using language that fosters little disagreement. Who doesn’t want sunshine and happiness? In politics, at some point, there is a need to set aside the happy talk and make tough choices. Tough choices can include disappointing some people to do the right thing. Tough choices require being prepared to abandon small thinking so that bigger goals can be achieved. If a country wants to be a real country, then it can’t behave like a collection of small fiefdoms. Canada has some tough choices to make. These choices will identify if Canada wants to act for the benefit of the whole country or if it is content to behave like a big family where every child can get what they want the way they want it.
Energy East, the proposal by TransCanada Pipelines is precisely the sort of issue that provides Canada with an opportunity to make tough choices and behave like a country. It is a project that has an overall national economic benefit. It can be completed with little impact on the environment. It is far less risky than transporting trainloads of oil through the center of densely populated cities and towns. The proposed 4,600-kilometre pipeline will stretch from central Alberta to a terminal in New Brunswick and could carry slightly more than one million barrels of crude oil per day. The current proposal calls for an existing natural gas pipeline to be converted to allow for oil transportation, and it includes some new pipelines in a few areas to complete the route. It will provide Canada with the ability to supply western oil to eastern markets and, additionally, bring its oil to the world market.
Mr. Trudeau has argued that the role of the Canadian Prime Minister is to avoid the trap of becoming a “cheerleader for pipelines” but to ensure that an effective process for reviewing proposals is followed. This is easier said than done. Therefore, this file may prove to be the first serious test for the honeymoon period that the Mr. Trudeau is enjoying with Canadians.
On January 26, 2016, Mr. Trudeau held a meeting in Montreal with Mr. Denis Coderre, the mayor of Montreal. The stated purpose of the meeting was to have a discussion about the proposed pipeline. The underlying purpose, however, was to ensure that the mounting opposition in Quebec did not continue to grow and to ask the mayor of Montreal to moderate the tone of the comments that he had been making as the spokesman for 82 Quebec municipalities that oppose the pipeline proposal.
Based on the post-meeting news conference, it would appear that rational thought, or good political skills, prevailed. Both politicians are reasonably astute at reading the public mood. Both understand the need avoid taking extreme positions. Neither man is inclined towards political suicide. Furthermore, the mayor of Montreal and the Prime Minister of Canada are political allies, so they probably agreed, behind closed doors, that it was unwise for either of them to paint the other one into a corner. Given that they are both staunch federalists, they also likely agreed that any public rancor between them plays directly into the hands of PQ leader Pierre Karl Peladeau and would provide the somewhat dormant separatist issue with a rallying cry. This is something that neither of them is keen to do, preferring to avoid giving Mr. Peladeau an issue that could allow him to claim that Quebec is being marginalized.
In their discussion on Tuesday, it is likely that Mr. Trudeau underlined his belief that business propositions, like pipelines, are subject to due process and a comprehensive environmental assessment. It is also likely that Mr. Coderre shared that Quebec municipalities are questioning some elements of the approval process. He also may have repeated comments made by Quebec Premier Philippe Couillard that, without a terminal in Quebec, there appears to be no way to assess the economic impact of the proposed project for the province. Furthermore, there was certainly some discussion of how to address some of the shrill concerns that are being raised by environmental groups, many of whom are opposed to anything that involves fossil fuel extraction, transportation or marketing.
What did this meeting accomplish? It may have bought some time for TransCanada Pipelines to fine-tune their proposal. The company may have underestimated the importance of engaging all potential stakeholders. They need to recognize the changing perceptions of the public and the shift that is happening in the political landscape. It may have also bought some time for Mr. Trudeau to make a few adjustments to the overall approval process. He has been stridently critical of the way these projects were reviewed in the past. Now he has the opportunity to do something about it. Finally, it bought some time for some behind the scenes discussions with a variety of municipal and provincial politicians that will allow the rhetoric to be dialed down and good sense to prevail.
Any project of this scope needs to be thoroughly assessed. A full understanding of the environmental impact must be considered. The business metrics must also be evaluated in the light of an understanding of the changing worldwide market for petroleum products. In the end, however, countries are built when the interests of the whole matter more than the preferences of regions or special interest groups.
What tough choices will Canada make? Let’s hope they are the right ones. If they are, we will likely continue to enjoy “Sunny Ways”.
- Published in Blog, Business, Energy, Oil and Gas
Energy East Pipeline: Trudeau Vs. Coderre?
The Latest Update on the Energy East Pipeline Conundrum
– Momentum Public Relations –
Prime Minster Justin Trudeau and Montreal Mayor Denis Coderre met behind closed doors on January 26th, 2016 to discuss matters pertaining to the Energy East pipeline and several ongoing infrastructure projects. The Energy East pipeline, if implemented, would carry bitumen to refineries and ports in New Brunswick from Saskatchewan and Alberta. Given rising tensions between Western Canada and Quebec on such matters as of late it seemed fitting that the two leaders would get together to try to resolve their differences on the environmental and financial ramifications of the Energy East pipeline project.
For those unaware, Coderre was criticized by many due to his stance on the Energy East pipeline project. That is, Coderre and over 80 Montreal area communities were vehemently opposed to the construction of the pipeline, triggering a fervent backlash from the West.
Coderre felt that the possible environmental repercussions of the pipeline far outweighed the possible financial benefits that the province would reap from the project. That is, he felt that while the city of Montreal would earn roughly 2 million per year from the pipeline, an environmental disaster brought on by a monolithic oil spill could cost the city upwards of 10 billion dollars to cleanup.
Trudeau, on the other hand, plans to have various political, social, and environmental groups look at the pipeline’s possible social and environmental impact (i.e., greenhouse emissions), giving leaders from different respective groups, including Aboriginal people, a chance to have their voices heard before plans are undertaken.
Furthermore, Coderre spoke openly about finding a balance between sustainable and economical development. For instance, while he accepted the Line 9B pipeline reversal project because the organizers provided comprehensive environmental impact reports, Coderre claimed that there were no viable contingency plans for a global environmental disaster, and that caveats must be addressed before plans were allowed to go forward.
It should also be noted that, just hours prior to the meeting between Coderre and Trudeau, federal environment commissioner Julie Gelfand released an audit that found that the National Energy Board had fallen short of its promise to follow up on compliance issues as well as fail to implement pipeline approval protocols. That is, the National Energy Board had failed to ensure the proper operation of over 70,000 km of existing gas and oil pipelines; which were being maintained and operated by nearly 100 different enterprises.
Ms. Gelfand also stated that, “[She] found that the board’s tracking systems were outdated and inefficient”. In fact, of the 49 cases that were assessed in the audit nearly half (24) had vital documentation that were incomplete, inaccurate, or missing altogether.
As for Mr. Trudeau, he emerged from the meeting with the optimistic stance that Canadians across the map would come onboard of the proposed infrastructure project once the Liberal government had been given the opportunity to overhaul the anemic review process and demonstrate the viable economic growth that such a pipeline project would bring.
De facto, Ms. Gelfand’s report found that the pipelines that were regulated by the Federal government moved over 160 billion dollars worth of gas and oil to international and Canadian markets in 2014. The report also claimed that approving the proposed pipeline construction project, amongst others, would nearly double the existing pipeline capacity in the next 4 years while also investing nearly 25 billion dollars in project development initiatives.
In addition, the report stressed that the energy board would need to work harder to recruit and retain qualified experts; which would not be a daunting task due to the recent massive layoffs that have have hit the oil and gas industry in Canada due to plunging global oil prices.
In sum, while nothing has been finalized between Quebec and Western Canada regarding the proposed Energy East pipeline project, the Federal government has claimed that it will factor in the effects of greenhouse gas emissions to the project’s approval criteria. Moreover, many pundits- including National Resources Minister Jim Carr-have stressed that ongoing consultations must take place between board members and First Nations leaders in order for the public to get behind the impending pipeline projects. For more information on the ongoing debates involving the Energy East pipeline and associated projects please click here.
- Published in Blog, Business, Oil and Gas
Medical Marijuana – 8 Uses of Cannabinoids
Medical Marijuana – 8 Uses of Cannabinoids
– Momentum Public Relations –
Canada has come a long way in regards to medical marijuana. It wasn’t that long ago that any mention of marijuana automatically conjured an image of a stereotypical stoner eating snacks on the couch. As the national conversation in Canada shifts towards the possibility of fully legalizing marijuana for adult users, many Canadians still have questions about medical marijuana and exactly what it is able to do. To answer those questions, we want to cover exactly what makes marijuana work as a form of medicine, as well as eight different medical use cases for marijuana:
Cannabinoids are the Key to Medical Marijuana
The reason marijuana can help people with different medical conditions is because it contains cannabinoids. The term cannabinoids refers to the active chemicals that are found in cannabis (marijuana). These chemicals are what causes the drug-like effects associated with marijuana usage. The two areas of the body that are most impacted by cannabinoids are the central nervous and immune systems.
Of the various cannabinoids found in marijuana, one of the most active and notable is delta-9-THC. More commonly identified simply as THC, this is the cannabinoid that’s responsible for the “high” associated with smoking marijuana. The other cannabinoid that’s important to note is cannabidiol (CBD). When isolated, CBD can lower inflammation or relieve pain without creating any of the effects associated with THC.
8 Medical Uses of Cannabinoids
The reason that Canadian companies like InMed Pharmaceuticals (IN:CSE) are investing so much R&D into drug discovery and development around cannabinoids is there are already numerous examples of their medical uses. Those uses include:
- Pain Management: Cannabinoids can be used to manage many different types of chronic pain. They are especially effective at managing pain that results from nerve damage. Cannabinoids make it possible for chronic pain sufferers to improve their quality of life without the risk of addiction and fatal overdose that opiates carry.
- Multiple Sclerosis: One of the effects of this condition is it causes painful muscle spasms. Individuals who have MS can use cannabinoids to help treat spasms and lessen their severity.
- Nausea: Individuals with AIDS and cancer patients are two examples of groups that struggle with significant nausea. Cannabinoids are very effective at lessening or completely stopping nausea in those types of people.
- Appetite Stimulant: In addition to significantly helping with nausea, cannabinoids are also an effective way to boost appetite. While lots of snacking is commonly portrayed in stereotypes of stoners, plenty of people with legitimate eating problems greatly benefit from this use of cannabinoids
- Epilepsy: Cannabinoids have been shown to dramatically reduce seizures in many people with epilepsy. For children with epilepsy and other patients, a cannabis oil that’s high in CBD and low in THC makes it possible to manage epilepsy without the typical side effects of feeling stoned.
- Crohn’s Disease: This disease causes bowel inflammation and commonly irritates the small intestine. Cannabinoids can lessen the need for someone with Crohn’s to take other types of medication. It can also reduce the likelihood of a person with Crohn’s Disease needing surgery.
- Cancer Treatment: Not only can cannabinoids help cancer patients manage their pain, but both THC and CBD have been shown to slow or even halt the growth of cancer cells.
- Parkinson’s Disease: Although studies have found that cannabinoids don’t help with the motor symptoms of this disease, cannabinoids have been shown to help reduce the tremors and stiffness associated with Parkinson’s.
While only time will tell whether or not marijuana will be legalized for all recreational users in Canada, there’s no doubt that significant progress will continue to be made within the realm of medical marijuana and using cannabinoids for therapeutic purposes.
- Published in Blog, InMed Pharmaceuticals, Life Sciences, Medical Marijuana
The Digital Couponing Revolution
The Digital Couponing Revolution
Momentum Public Relations
Digital couponing is rapidly gaining popularity with the rise of the digital age. Social media, email, and face-to-face online chat are the primary means of communication. Gone are the days of coupons being only for the destitute desperately seeking the next deal in the Sunday paper. It’s no longer necessary to stalk the papers and magazines for useful paper coupons (although this is still a legitimate couponing method).
Right now, there are three major methods of digital couponing available with a fourth emerging as possibly the most convenient of all.
Printable Coupons
Many coupons and quality deals can be found online. Some of these coupons are printable. They require you to have a printer and often sign up for the website’s email list. Using this type of digital coupon can yield a lot of valuable in-store deals. There are even some that can be combined with other offers for maximum savings.
eCoupons
eCoupons can be used one of two ways. First, they can be used as codes to make online purchases. There are certain websites that offer coupon codes or cash back for making purchases through their websites. Other times, you can use eCoupons that load directly to your store loyalty card. When you use your loyalty card at checkout, your coupon is automatically applied to your total.
Mobile Coupons
Mobile coupons are growing in popularity and can be used in several different ways. Some coupons can be downloaded to a smartphone and used in store by scanning the barcode. Others can be used by downloading applications that provide coupons for specific brands or general products and snapping a picture of the receipt or scanning the product barcode after purchase. Using several apps for a single grocery trip can sometimes yield half-price or even free products.
Real Time Mobile Coupons
In addition to these couponing methods, a new way to coupon is emerging and promises to be even easier. A leading innovator in this method is Mobi724. They offer digital couponing that is personalized to the user and directed to the customer’s bank or credit card. The customer simply needs to accept the coupon on the Mobi724 app and make the in-store purchase with his or her respective bank or credit card. The coupon rate is then deducted from the bank or credit card statement for instant savings.
The great thing about this couponing method is the level of convenience that it offers customers. It’s simple and can be used on any mobile device worldwide. The method uses analytics based on the professed interests of the customer. When you download the application, you will be asked to provide a list of your interests, and coupons are chosen for you based on those interests. When you receive an alert for one that you want to use, go to the store, make your purchase with your bank or credit card, and you’re done.
There is no clipping coupons, no searching multiple applications for the best deals, no snapping pictures of receipts, and no scouring websites for the coupons that you need. This couponing method does the work for you. All you have to do is shop like you normally would, and your savings is automatically applied to your account.
In today’s busy world, we are always looking for ways to make life just a little easier. It’s easy to get buried in the clutter of multiple paper coupons and couponing apps. It’s hard to keep track of couponing on top of all of our other responsibilities. It’s great to have a method available that takes away the extra steps or can be used in addition to those steps for maximum savings.
Whatever couponing method you choose, there is no doubt that the digital age has revolutionized couponing and made it even easier for people from all walks of life to save on their everyday purchases.
- Published in Blog, Financial Technology, Mobi724 Global Solutions, Mobile Technology, Technology
What to Expect from FinTech this Year
What to Expect from FinTech in 2016
– Momentum Public Relations –
Financial technology is an area that moves quickly. Since this type of technology directly impacts commerce around the globe, it shouldn’t come as a surprise that there are a lot of incentives for companies to move this industry forward. While there’s been a lot of exciting advancements in this space over the last few years, 2016 is already shaping up to be an even bigger year for the industry.
To help shine some light on what you can expect from FinTech over the next twelve months, we’ve put together a list of seven trends and forecasts that are likely to stand out the most:
Making Compliance as Easy as Possible
The banking industry has plenty of indiscretions on its record. As a result, the industry is now facing even more regulation issues. These increased regulations are targeted at transactions both online and offline. Because compliance creates a lot of additional work for financial institutions, these requirements present a significant opportunity for companies that can develop FinTech solutions specifically designed around streamlining compliance issues.
Helping Consumers Become Smarter with Their Finances
It’s no secret that plenty of financial institutions have engaged in consumer practices that were misleading or even predatory. However, that doesn’t mean the entire industry is looking for opportunities to exploit consumers. On the contrary, there are a lot of startups and other companies throughout the FinTech space that are working hard to help consumers become even smarter and more empowered with their finances. Many of these efforts are focused at younger consumers dealing with issues like student loan debt or older consumers who have concerns about their retirement planning being adequate enough.
Providing a Wider Range of Payment Options
More businesses than ever before are engaging with consumers and other businesses across the globe. The globalized nature of commerce means that both individuals and organizations are looking for ways to facilitate transactions without long delays or expensive processing fees. In addition to all of the efforts being built around Bitcoin, there are many other financial technologies exploring various ways to make and receive payments on a global scale.
Creating New Channels for Loans
Although it’s possible to start many types of businesses with very little upfront investment, most businesses still need at least some capital to get off the ground or grow. That’s why a very interesting area within the FinTech space is companies that are allowing small businesses to bypass traditional lending institutions and secure the types of loans they need at very appealing rates. There’s also a lot happening around giving individuals more control in regards to obtaining and managing loans.
Improving the Online Shopping Experience
While online shopping has come a long way over the last few years, it’s still not as seamless as most consumers and merchants would like. This is especially true for mobile transactions. Not only are financial technology companies focused on smartphone online shopping, but plenty of companies within this space are looking at how more basic phones in developing parts of the world can be used to facilitate commerce.
Cutting Down How Long It Takes to Get Paid
Both small and large businesses spend a lot of time and resources on activities like collecting invoices and collections. Since those types of inefficiencies can cause cash flow crunches and other headaches, there’s a lot of incentive for FinTech providers to come up with solutions that streamline and speed up the process of collecting payments.
Taking a Stand Against Fraud
As the breaches of several very large companies have shown, financial information and assets still aren’t as secure as they should be. Although standards like EMV are already helping to reduce credit card fraud among in-person payments, the industry still has a long way to go to truly curb the amount of fraud that occurs in relation to both consumer and business finances.
- Published in Blog, Financial Technology, Mobile Technology, Technology
What Was Justin Trudeau Doing in Davos?
What Was Justin Trudeau Doing in Davos?
Momentum Public Relations
Although Davos has a population of just over 11,000, this Swiss municipality is known around the world. The reason this small town has a global reputation is it’s where the World Economic Forum is hosted each year. The World Economic Forum, which is often simply referred to as the WEF, is a meeting where top businesspeople and politicians from across the globe come together. Around 2,200 elites meet over the course of five days to discuss everything from poverty to international conflicts.
Attending the WEF is why Justin Trudeau made the trip to Switzerland. One of the highlights from his trip was taking the event’s main stage and explaining to an audience of several hundred people why Canada is so well-suited for the rapidly changing global economy. He mentioned resilience, diversity, confidence and positivity as key factors that make Canada such an appealing economy.
How Justin Trudeau’s WEF Speech Differed from Stephen Harper’s
Because the World Economic Forum takes place every year in Davos, it was just a few years ago when the man addressing this event on behalf of Canada was Stephen Harper. As Trudeau mentioned in his own speech, Harper’s focus in 2012 was making the world aware of all the resources that Canada had to offer. While those resources are still a very important part of the Canadian economy, Trudeau said in his speech that he wants “you to know Canadians for our resourcefulness.”
The Prime Minister’s speech comes at a time when the Canadian economy is facing some very significant challenges. Specifically, oil prices have dipped to their lowest in over a decade. That has resulted in the government exploring new revenue channels, significant job losses across the oil industry and a weakening of the Canadian dollar.
During the course of his speech, Trudeau emphasized the very important role that diversity plays in Canada. He also made it clear that technology is important, but won’t be the determining factor in the future that Canada creates. Instead, that future will be the result of the types of leaders that Canada is able to produce.
Other Important Aspects of Trudeau’s Time in Davos
In addition to giving a very impactful speech, Trudeau had a very busy agenda while in Davos. The Prime Minister shared much of what he was doing via Twitter. He spent time with Facebook’s Sheryl Sandberg, as well as Microsoft CEO Satya Nadella. He shared a picture of himself with GM CEO Mary Barra and said he told her that he hopes the company will continue creating jobs by investing in Canada.
Trudeau didn’t only spend time meeting with businesspeople. He had an opportunity to meet US Secretary of State John Kerry. He also sat down with Melinda Gates to talk about gender parity. As this panel discussed, gender parity won’t be reached until 2133 unless measures are taken at all levels to help accelerate progress.
And for a little bit of fun during all of these very important conversations, Trudeau had an opportunity to check out a variety of new high-tech devices like the Oculus Rift. While those were the types of meetings that Trudeau shared through Twitter, the World Economic Forum is known for being the site of plenty of private meetings. Those types of meetings include people like Ben van Beurden, the CEO of Royal Dutch Shell, as well as the famous financier George Soros. Having access to such a wealthy audience of people provided Trudeau a chance to meet with investors who might be interested in putting more of their money into Canada and the next chapter of its economy.
The Sky is Falling – Or Maybe it Isn’t
The Sky is Falling – Or Maybe it Isn’t
Momentum Public Relations
In the famous children’s fable, the excitable “Chicken Little” runs around declaring that the sky is falling. This tale provokes a shared belief by other characters in the story that a disaster of epic proportions is imminent. The story, and the character, both have a rich history, one that goes back more than 20 centuries. The very memorable phrase that heralds pending doom has become a statement that is part of the idiom of our culture.
Crude oil prices have tanked! Is the sky falling? Are we about to experience the end of the world? Will this take down the Canadian economy? Will it shake the nations of the world to their core?
Let’s begin with some perspective and a reality check. The current price of oil is close to its 40-year average when adjustments for inflation are factored in. Perhaps we need to re-frame the issue and temper the concern. The data suggests that we may have returned to a well-calibrated price level after a temporary period of extraordinarily high prices. Is it possible that this is the new normal and the alarmist commentators are misguided?
Still, there has been a steep decline in the wellhead price of oil, and it is important to assess how the short-term fallout from lower prices will impact the economy in the medium term. Additionally, and more importantly, the lower price of oil may provide the impetus for a recalibration of some previously unchallenged assumptions. A further consideration is that the current oil price might open up avenues and options that will include some shifting of relevant government policies in the energy sector.
Everyone is aware that in June 2014 the price of a barrel of oil was around $110 USD and in January 2016 it is below $30 USD. What happened? Why has the world experienced such a price decline for an essential commodity like crude oil? The explanation is rather simple and doesn’t require an advanced degree in economics to understand. The law of supply and demand is at work in the marketplace. The details that provide the long list of reasons why supply vastly exceeds demand are more complicated, but surprisingly easy to digest. For more information on the factors that are contributing to the declining price of oil, the link below provides an analysis of the situation as of January 2016.
http://www.vox.com/2016/1/12/10755754/crude-oil-prices-falling
Assuming that low crude oil prices are a medium-term fact of life, what options exist to address the situation? We’ll begin with the premise that the world economy is arguably very resilient and multi-dimensional. Principles of supply and demand function effectively in most cases, and people come to grips with reality and adjust their expectations all the time. Naturally, some parts of the world rely so heavily on oil money that they won’t be able to avoid spiraling into decline. Places like Russia, Venezuela or Nigeria come quickly to mind. There is little doubt that there will be a greater impact on the economies of countries that have placed all of their bets on selling oil at $100 per barrel. Places like Saudi Arabia will have less money to invest and will need to diversify their overall economy but may not have as much time to do so as they might prefer.
What about oil-rich Canada? While Canada has a high dependency on revenues related to oil in some regions, the latest economic numbers show that, on balance, the overall economy is stable. Two lagging indicators are particularly interesting. In Q3 of 2015, while oil was in freefall, Canada’s employment grew by 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and GDP grew by 2.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. There is considerable financial fallout, much of it well documented, in places like Fort McMurray, Alberta as oil companies delay projects and mothball equipment. The non-negotiable law that dictates “what goes up must come down” is having its effect on real people, and financial hardship at a personal level isn’t pleasant and never seems fair. Nonetheless, if we embrace the rewards that are inherent in a market-based economy, there is an argument to be made for being prepared to accept the downside that can come when the market takes a dive.
So what options and alternatives do we face? We’d like to suggest two radically different options, each with some merits.
- Escalate “green” incentives
When prices of traditional fuels are relatively inexpensive, it may be time for governments to set incentives in place to accelerate the development of alternative forms of energy. These could include policy initiatives like subsidies for wholesale energy conversions by major consumers of oil and gas. It could also include the adoption of carbon taxes. Many influential voices have begun advocating in favour of revenue neutral carbon taxation. The suggestion is that, with the lower price of oil, the impact of moving forward with a tax now will not be as significant compared to what it might have been 18 months ago. This line of thinking includes the premise that the economy will adjust to the new normal of taxed carbon emissions, and the reduction of overall greenhouse gas will begin to diminish independent of fossil fuel price fluctuations.
- Encourage business to lead the way – publicize successes
When companies become change agents, there is progress on social issues. What company today wouldn’t claim to an equal opportunity employer? It is socially unacceptable to suggest that equality is unimportant. The same social pressure is emerging in relation to the stewardship of the environment. Those who advocate for a free market driven approach point to a combination of social acceptability, necessity, market conditions and anticipated ROI that will guide in the conservation of precious resources. In many cases, subsidy-free advances in technology have contributed to the existence of a number of new energy alternatives. In addition, just a few simple steps, like those described in the link below, can increase profits by saving money while having the benefit of appealing to the need to “think green”, a desire that most people in the western world believe essential.
http://www.sustainablebusinesstoolkit.com/going-green-tips-for-the-office/
Whatever policy option, or the combination of options, our policy makers follow, it might be wise to consider the ultimate lesson in the story of “Chicken Little.” As the fearful group assembles around “Chicken Little” and is urged to tell the lion about the terrible news that the sky is about to fall, they are lured into the fox’s den, never to be seen again! The moral for investors? There is always a fox that is waiting to take advantage of those who don’t assess the situation accurately and fail to respond sensibly.
- Published in Blog, Oil and Gas
Canadian dollar gains ground while Bank of Canada maintains rates
Canadian dollar gains ground while Bank of Canada maintains rates
Momentum Public Relations – Stephanie Boucher
On January 20th, the Bank of Canada announced that it will maintain its current interest rate at 0.5 percent as it waits to see what the government has in store for the struggling economy.
This decision has been highly anticipated by economists throughout the country, who have had split opinions on whether or not the interest rate would be lowered. It has been an important topic this week as this interest rate has a strong impact on the rate Canadians get from banks and lending institutions when they choose to save or borrow money.
The Bank of Canada Governor Stephen Poloz cut the bank’s benchmark interest rate twice within the last year in an attempt to stimulate the economy. However, lower interest rates make the Canadian dollar less attractive on the world markets, as foreign investors seek a better return elsewhere. A lower dollar means higher import prices, which affects many Canadian small businesses, and also sparks inflation. The decision to keep the rate as is at 0.5 per cent was a safe play, despite other global factors.
According to Poloz, the Bank’s decision to maintain the interest rate was made because the economy, while still struggling, is expected to show signs of improvement later this year. In fact, the Bank of Canada projects that the Canadian economy will grow by 1.5 per cent in 2016 and by as much as 2.5 per cent in 2017. The Bank also expects inflation to rise by about 2 per cent by early 2017.
The price of oil, as well as other commodities, has had a negative effect on the Canadian economy – the Bank expects the economy’s return to above-potential growth to be delayed until the second half of 2016 and moving in to 2017. According to a statement by the Bank of Canada, “The complex nature of the ongoing structural adjustment makes the outlook for demand and potential output highly uncertain. The Bank’s current base case projection shows the output gap closing later than was anticipated in October, around the end of 2017.”
After the announcement, the Canadian dollar rose to 68.89 cents US, and after many ups and downs throughout the day, closed at 69.03 cents US, up 0.44 of a cent.
National employment has been rather unaffected, despite recent reported job losses in the resources sector.
According to economists, the Bank’s decision to maintain the overnight rate will have a minimal impact on mortgage rates for the time being. While mortgage rates have increased slightly over the last few months, to the confusion of many homeowners, they remain steady for now. Experts advise new homeowners and those looking to renew their mortgage to choose a fixed, or locked in rate, one with fixed payments as they forecast mortgage hikes within the next few years.
Now, the ball falls in the court of Finance Minister Bill Morneau, who must deliver a stimulus budget that will boost economic growth in Canada through government spending on infrastructure, public transport, social housing and green energy. This spending will result in much larger deficits than the $10-billion limit promised by the Liberal Party of Canada during their election campaign. The Liberal Party has not disclosed how far beyond the target it will go.
Despite the decision to keep the rates steady this week, the Bank of Canada maintains that the country’s economic environment remains very uncertain. The Bank’s Governing Council maintains that its current stance of monetary policy is appropriate, but cuts to the benchmark overnight interest rate could still happen within the next few months, as early as March.
Sources:
http://www.bankofcanada.ca/2016/01/fad-press-release-2016-01-20/
http://www.cbc.ca/news/business/interest-rate-poloz-1.3411621
The Canadian Wastewater Alchemist: Turning Sewage into Gold
The Canadian Wastewater Alchemist: Turning Sewage into a Golden Opportunity
Momentum Public Relations
Approximately two-thirds of the greenhouse emissions being generated annually stem from consumption and energy production. As such, the goal is to accelerate the development of eco-friendly technologies that will decarbonize energy consumption and production in order to fight climate change. Here’s another staggering statistic: Experts estimate that Americans flush down about 350 billion kilo-watt hours worth of energy into the sewer systems every year. Moreover, all of that energy, if harmonized, would be sufficient to provide power for over 30 million American homes annually. Who would have thought that all the seemingly worthless and dirty laundry and dishwater, not to mention shower drain water, could be the quintessential catalyst required to galvanize the world’s energy recovery and efficiency initiatives?
In addition, Canadian Prime Minister Justin Trudeau recently announced that the Southern Ontario Water Consortium would receive 12 million dollars in order to research and develop new innovative water based technologies that will help provide clean water for Canadians and the world at large. Prime Minster Trudeau also recently attended the World Economic Forum Annual Meeting, which was held in Davos-Klosters, Switerland from January 20th to the 23rd, and gave a passionate and ingenuous speech on Canada’s role in developing new technologies that can help impact the lives of the disenfranchised. You can watch the full speech, as well as his one-on-one interview with Dr. Fareed Zakaria here.
As can be seen, the need for clean, renewable energy and water are at an all time high. With over 7 billion people on the planet that need convenient access to clean water for drinking, hygiene, and for heating purposes, the demand for a renewable, clean source of water has never been higher. Fortunately, one company has answered that need with gumption. The innovative minds that founded International Wastewater Systems (IWS: CSE) (IWI: FSE) specialize in turning sewage into a clean, renewable energy source for the masses. What’s more, the company was founded by a group of engineering and technical connoisseurs with over a century of combined experience in the geo-exchange, ventilation, and heating industries.
Specializing in wastewater heat recovery, International Wastewater Systems is strongly committed towards manufacturing premium grade products that are eco-friendly and will reduce the costs incurred by cooling and heating homes around the world. For instance, their proprietary and cutting edge “Sewage SHARC” has the ability to cool and heat commercial buildings and multiplex apartment units, as well as generate domestic hot water. The eco-friendly enterprise also extends its services towards large scale geothermal installations, energy districts, and hotel installations. Regardless of the services that they provide, the medium that they use remains a constant; raw sewage. By using a previously untapped renewable resource that is in nearly infinite supply, International Wastewater Systems can provide thermo-mechanical services that are reliable, scalable, cost effective, and energy efficient.
Furthermore, International Wastewater Systems won the Green Building Award at the 2016 AHR Expo Innovation Awards for their leading edge Piranha Wastewater Heat Recovery Heat Pump. The state of the art self-contained heat pump works by extracting thermal energy from wastewater in order to produce domestic hot water that can be used for a myriad of commercial applications. The Piranha can also be used for stand-alone commercial projects and is optimized to work with fifty to two hundred unit residential complexes. Those interested in learning more about their cutting edge wastewater systems can pay a visit to their booth (#2997) at the largest HVAC marketplace in the world, which is taking place in Orlando, Florida from January 25h to January 27th in 2016.
As the world looks to unbridled pioneers to catapult humanity into the stratosphere of global change and growth, International Wastewater Systems looks to be the leader in wastewater management, sustainability, and adaptability. Having made appearances in National Geographic, BBC News, The Global Mail, North American Clean Energy, HPAC Engineering, Water Canada, Clean Energy Pipeline, the Journal of Commerce, and many other reputable publications, it is evident that the world has taken note of the innovative green technologies that International Wastewater Systems has brought to the forefront. To learn more about the company and their newfound technologies please visit > here.
- Published in Blog, International Wastewater Systems