Section 2: Economic events
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Canada
Canadian Natural Resources announced plans to invest $7.2 billion in 2012, with overall production growth of 17% to between 675,000 to 726,000 barrels of oil a day. Suncor confirmed its 2012 capital budget of $7.5 billion, with 60% for oilsands development. Southern Pacific Resource submitted plans to start phase two of its McKay project that will add 24,000 barrels per day of bitumen. Enbridge is spending $1.15 billion for a half interest in the Seaway crude pipeline, and announced it will reverse the direction of the flow allowing more crude to move south from oil storage in Cushings, Oklahoma into refineries along the Gulf Coast. TransCanada announced plans to construct the most southerly leg of its Keystone project, which will connect Cushings to the Houston area. The US State Department ordered TransCanada to find a new route for its Keystone line to avoid the Sand Hills region and the Ogallala aquifer, setting the project back over a year.
World
The US Federal Reserve unveiled plans to requiring annual tests of financial strength for all US banks with more than $50 billion in assets.
The European Central Bank cut its key lending rate by 25 basis points to 1%.
The Government of France proposed a further 19 billion euros in budget cuts and tax increases as part of an effort to maintain its top-level credit rating.
The European sovereign debt crisis led to changes in the governments of Greece, Spain and Italy.
Venezuela enacted a new price regulation law that allows the government to set price caps on as many as 15,000 goods. Transnational corporations will have to report their production costs to enable the government to set prices.
Thai floods curtailed production at Honda and Toyota due to parts shortages.
In a co-ordinated move with other central banks, the US Federal Reserve lowered the interest rate on short-term dollar loans to the ECB by half a point.
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