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(January 10, 2008) If you think $100 is a steep price for oil, CIBC World Markets has some bad news: oil will hit $150 a barrel within five years. That’s according to senior strategist Jeff Rubin, who points to the Econ 101 lesson of supply and demand.

Not only is demand for petroleum rising in developing economies, but efforts to bring more production online are falling short of expectations.

“From Kazakhstan to Nigeria’s Delta region, protracted delays in some of the world’s largest energy mega-projects will have huge impacts on actual supply growth over the next five years,” says Rubin.

Those projects that are already producing are running at full tilt and are in danger of running out.

“Depletion from existing fields has accelerated to over 4%, a rate that currently cuts nearly four million barrels per day out of each year’s production,” he says.

Clients may want to stock up on dividend-paying oil-based investments just to keep their cars on the road. Rubin suggests the price of gasoline is headed to $1.50 a litre.

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IDA finds Golden Capital guilty

(January 10, 2008) A hearing panel of the IDA has found Golden Capital Securities Ltd. guilty of violating bylaw 19.6 and/or 29.1 by failing to co-operate with an investigation.

Since November 2006, Golden failed to provide investigators with access to data pertaining to three employees who are the subject of an investigation and alleged to have failed in their duty to know their client.

The panel has ordered Golden to provide access to the data in such a way as to maintain solicitor and client confidentiality.

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Mercer expands SRI team

(January 10, 2008) Investment consulting firm Mercer has expanded its socially responsible investment division, adding six new experts to the team.

“Mercer’s responsible investment unit has grown considerably since 2004, when we were the first asset consulting firm to establish a committed RI offering,” says Jane Ambachtsheer, global head of responsible investment for Mercer. “This growth reflects the extent to which responsible investment is evolving — from a niche area to one of our core lines of business. This is due to an increasing number of institutional investors around the world seeking advice on how to better incorporate environmental, social and governance factors into their investment processes.”

The Toronto office will see the addition of Jordan Berger as head of responsible investment for Canada and Kelly Gauthier as associate. Berger has spent the past 10 years working with the Ontario Public Service Employees Union as supervisor of strategic planning, policy development and benefits. Gauthier has spent four years as a management consultant and worked for CARE Enterprise Partners in social venture capital.

Farther afield, Mercer also announced the appointment of Dr. Xinting Jia in the Melbourne office, Megumi Terayama in Tokyo, Susanna Jacobson in London and Eric Gelfgren in Stockholm.

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RBC bundles DI for small business owners

(January 10, 2008) RBC has launched an initiative to sell disability insurance as an option under its Business Loan Insurance Plan for small business owners. The plan is underwritten by Sun Life.

“Canada has over two million small and commercial business owners. In most of these enterprises, the owner is the heart and soul of the business,” said Louise Mitchell, president, RBC Insurance Services. “The Business Loan Insurance Plan is designed to help the business maintain its loan and mortgage obligations so the owner can focus on recovering.”

The Business Loan Insurance Plan is a group creditor insurance plan that also includes life insurance and accidental dismemberment coverage.

(01/10/08)