ExxonMobil Renegs on Promise to NL
JUST HITTING THE NEWS WIRES:
ExxonMobil reneging on promise to allow audit on Hibernia, N.L. premier says 11:34:31 EDT Jul 12, 2006
ST. JOHN'S, N.L. (CP) - Newfoundland Premier Danny Williams says ExxonMobil Canada (NYSE:XOM) has reneged on a year-old promise to allow auditors to examine Hibernia's financial records.
Williams says in August last year, senior ExxonMobil executives agreed to have the offshore oil project reviewed by auditors chosen by the province to verify claims that Hibernia was not meeting expectations.
But Williams says ExxonMobil, the largest owner in Hibernia, later refused, and so the province hired Navigant Consulting Inc. (NYSE:NCI) to analyze all available information.
Navigant Consulting found operating revenues increased approximately six times over official projections from $1.7 billion to $10.1 billion.
It also found that operating costs of the project were 57 per cent, or $2.4 billion less than projected by the company.
Williams says he has notified Prime Minister Stephen Harper of the company's decision to deny the province audit access.
"The time has come for these oil and gas companies to start sharing more of the tremendous financial benefits from our province's resources," Williams said in a statement.
"Indeed, the province has benefited from our oil and gas industry, but it is clear from the preliminary work we have done that our share is a mere pittance compared to that of the companies."
ExxonMobil and Williams have been embroiled in a dispute since plans to develop another offshore oil project, Hebron, were shelved in April.
The company is the largest equity holder in Hebron with a 38 per cent stake.
Chevron Canada Ltd. (NYSE:CVX), the project's operator, disbanded its Hebron project team in April because it could not agree on fiscal terms and benefits with the Newfoundland government.
33 comments:
Take your oil and shove it Newfieland.
Anon, thanks for the insightful comment, are you the first person in your family to walk upright by the way?
It should be interesting to see how it plays out, there is also a release on the provincial website
http://www.releases.gov.nl.ca/releases/2006/exec/0712n01.htm
Interesting how Cry-Baby Williams runs to the media every time he doesn't get his own way, and the sheep of this province lap it up everytime. Get the facts and think for yourselves.
What's more interesting is Danny's increasing resort to the old Smallwood tactic of erecting an enemy for everyone to hate, hate, hate. Today he went after several: NOIA, Exxon, Ruelokke, and that's on top of his bizarre demands the other day that Stephen Harper make Inco live up to its end of the Voisey's Bay bargain.
(And what does it matter, anyway, whether it's Argentia or Long Harbour? Can anyone figure that one out?)
It's all very 1984. Two minute hate and all that.
Does no one else besides me have their eyes open to the petty tyrant that Chairman Dan has become?
Just noticed that the newest top 10 list of Fortune Global companies has quite the oil/auto mix. There's 1 retail(Wal Mart), 4 auto makers and 5 petroleum producers. The list is topped by none other than Exxon.
Maybe Danny is making a good stand against Exxon or maybe he's being foolish, I'm not sure. What I am sure about is that he's going to look like a fool over this Ruelokke thing. The man was chosen by a provincially approved process so even if we're not happy with the results there's no turning back now.
Later....
WJM you said it very well. Thank God there's some in this province who don't have blinders on.
To WJM, who sent in that last comment, your mom? (couldn't resist)
I have to agree to some degree that Williams is good at uniting the public behind a common enemy. Its a mark of many successful leaders. Unfortunately the tactic can be used for both good or evil.
On the topic of where Inco builds I have to disagree. The promise made by INCO to build at Argentia led to the purchase and holding of properties in the area based on that decision.
Local business interests have made investments and decisions based on the decision and local people have made decisions on everything from home sales to work plans based on that decision.
Not building there now would adversely impact a lot of people who are guilty of nothing more than believing the promise.
I apologize for removing the previous comment from Eurotrash but the language would likely have been very offensive to some of our readers especially our younger ones.
I have copied his comment (without the offensive language) below:
Who the (expletive) are you WJM? How on earth can you attack a politician who, superficially at least, isn't prepared to sit back and let large companies have their way with the province? Isn't that the history of Newfoundland, to have it's resources stripped bare by whatever merchant power is interested, and leave the people with nothing?
Exxonmobil SHOULD open its books and keep its commitments as should Inco. I think that is a much more crucial issue than whether or not Danny Williams is a "petty tyrant".
Your remarks are downright backwards - if you want Newfoundland to remain some economic backwater than you should pack your bags and (expletive) to Mississauga already. (expletive)!
Patriot said:
Local business interests have made investments and decisions based on the decision and local people have made decisions on everything from home sales to work plans based on that decision.
Not building there now would adversely impact a lot of people who are guilty of nothing more than believing the promise"
The same can be said for Hebron. There are countless people and businesses who were ready to proceed and many who will fold if this doesn't go ahead, yet Williams doesn't care about that. He just wants to be "the little premier who took on Big Oil"
What about all the people who are leaving the province because withour Hebron there is no future for them. Standing up for Newfoundland is noble.....making Newfoundland suffer yet again for political purposes is just wrong.
I'd like to apologize for my previous expletive fest. It certainly isn't the best way to communicate my ideas and it was right to remove my unedited comments. Other than that I can't help but feel a strong emotional reaction against perspectives that advocate Newfoundlanders and Labradorians and their leaders do what it takes to placate business. Certainly local business , big and small, has invested time and resources with the hopes of gaining business from oil and mineral developments but what's the point of not calling Exxonmobil's bluff? Anyone who understands or has any knowledge of the oil industry would understand that Newfoundland is in the position where it can write the rules. Think about it - in the past four years oil has increased in price at THREE FOLD and it's not going to go down anytime soon as world demand skyrockets and supplies are dwindling. We use four barrels of oil for every barrel we find. This is is about economics and money, not making Newfoundlanders suffer for political purposes. Those that are advocating we go the short-term, less-profit route are begging for a return to Churchill Falls type shortsightedness. Life has never been easy in Newfoundland and Labrador but the only thing that is going to set the province right economically, and put it on the path to a prosperous future,
is solidarity, sacrifice and hard bargaining attitude. Things are gonna get worse before they get better - No matter what - and selling ourselves (and our resources) short, is not gonna help anyone except for shrewd big business.
The plot thickens... Da da daaaaaaaa http://www.cbc.ca/canada/newfoundland-labrador/story/2006/07/13/exxonmobile-reaction.html
If it wasn't so important I would laugh but read the Notional Poge spin.
http://www.canada.com/nationalpost/financialpost/story.html?id=00e5309e-8b11-4a18-8951-4bce65d32856&k=10752
More news...
http://energy.seekingalpha.com/article/13597
(Our "National" news papers are such a joke. If the same exact thing was happening in Alberta they would be roaring behind them)
http://www.theglobeandmail.com/servlet/story/LAC.20060714.EWILLIAMS14/TPStory/Comment
From the Toronto Star today:
"...Alberta is now looking for increased royalties, enhanced royalties, but the interesting thing is when Alberta looks for it, nobody minds that," Williams said. But if Newfoundland and Labrador wants to get a little more, then it's seen as a grab and I've got to say I resent that...."
"If we buckle now and we bend over, bend our knees, then at the end of the day that's going to be it. We'll give forever.
The federal government would be wise to soon address a burgeoning interest from other countries, namely China, in Newfoundland's offshore oil industry", Williams added.
Mr Chills the entire story from the Mop and Pail can be gotten by searching for it in google. Here's the full story as slanted and uninformed as it is.
http://www.theglobeandmail.com/servlet/story/LAC.20060714.EWILLIAMS14/TPStory/Comment
What is the sence of being apart of Canada if the country doesn't stand together?
Leave it in the ground or else we will be forever sorry as with Brinco and the upper churchill and hopefully not knock on wood Voiseys bay INCO.
Land and tax concessions for the building of the NFLD railway, same for the pulp and paper mills we gave away stumpage fees and taxes once again. We need to learn from our past mistakes lord knows weve had enough of them.
Same thing could be said for the appointment of that fellow with all of the oil industry ties to the CNLOPB thats is what happened with the Upper Churchill negotiations with Hydro Quebec stting in on Brincos board room discussions and then going back and negotiating with insider knowledge of our dire financial straits. They were even told no you can't have ownership and sit in on Brincos meetings because that would constitute a conflict of interest but they did it anyways.
http://www.ucs.mun.ca/~feehan/CF.pdf
The link seems to have been removed?
I have to agree to some degree that Williams is good at uniting the public behind a common enemy. Its a mark of many successful leaders.
No, it's a mark of demagogues like Smallwood and Duplessis. Chairman Dan has added his name to the list.
On the topic of where Inco builds I have to disagree. The promise made by INCO to build at Argentia led to the purchase and holding of properties in the area based on that decision.
And? Inco's legally-binding promise was to build in the province.
Local business interests have made investments and decisions based on the decision and local people have made decisions on everything from home sales to work plans based on that decision.
A lot of people did the same based on Hebron Ben Nevis going ahead, too, until Danny Williams decided the province didn't need the jobs or investment.
Come on WJM, you're really stretching now. Comparing INCO wanting to pull out of Argentia with Hebron. People invested there because a contract was signed and INCO said they would build there. Anyone who made investements on the speculation that a deal would happen on Hebron is not in the same boat. Get real.
Sorry, I meant to add that one is based on a signed agreement and promise from the company involved, the other is based on pure speculation of a potential deal. Big difference.
Come on WJM, you're really stretching now. Comparing INCO wanting to pull out of Argentia with Hebron. People invested there because a contract was signed
The contract said they would build in the province.
and INCO said they would build there.
And? Does this mean Happy Valley-Goose Bay can hold the province to Joe Smallwood's original promise to put the Labrador Linerboard mill in, well Labrador, instead of Stephenville?
Sorry, I meant to add that one is based on a signed agreement and promise from the company involved, the other is based on pure speculation of a potential deal. Big difference.
Moving the plant from Argentia is in perfect conformity with the legal agreement that the company and the province signed:
4.6.4 The Proponent shall establish the Processing Plant at Argentia unless environmental conditions at Argentia would make it not economically feasible to establish the Processing Plant at Argentia and, in such circumstances, the Proponent shall locate the Processing Plant at another site in the Province.
Read it yourself.
I ask again: Argentia, Long Harbour, what's the difference? Still a bunch of Newfoundlanders stealing resources from Labrador, AGAIN.
To my knowledge the problem with the Labrador portion of the province was the lack or nonexistance of a year round ice free port.
It's called Sept-Iles.
Isn't Sept-iles in Quebec?
Yip. It's also the ice-free port by which Labrador iron ore pellets go to market, and it's the ice-free port that the promoters of a smelter for Labrador West would have used if their Labrador site had been given any serious consideration.
why would you want raw materials leaving the province?
GO EXXON!!!!
Don't let a whiny little freakshow from a dinky poor province tell you what to do. He can't even balance his own books ....I wouldn't let him near my accounts either.
GO EXXON!!!!
YEAH GO EXXXON! (You F##KING IDIOT!)
ExxonMobil is still actively pushing to open the Arctic National Wildlife Refuge to drilling.
ExxonMobil continues to deny the urgency of lobal warming, fund junk science to cloud the issue, and actively inhibit domestic and international efforts to cut global warming
pollution.
ExxonMobil is making record-breaking profits because of high gasoline prices but refuses to invest that windfall in renewable energy to ease America’s oil dependence.
ExxonMobil continues to challenge the 1994 court ruling ordering the company to pay $4-$5 billion in punitive damages to fishermen and others injured by the Exxon Valdez oil spill.
Really? Prove it. I'd love to know your source, or are you just regurgitating the BS you hear on VOCM and from "government".z
why would you want raw materials leaving the province?
Who said anything about raw materials leaving the province?
If you could read, you'd know I wrote:
[Sept-Iles] is also the ice-free port by which Labrador iron ore pellets go to market, and it's the ice-free port that the promoters of a smelter for Labrador West would have used if their Labrador site had been given any serious consideration.
The final product of the smelter (you know what a smelter is, right? The thing Argentia thinks it is owed.) is not a raw material.
But it's only a raw material "leaving the province" if it doesn't touch on Newfoundland soil first. Heaven forbid a raw material should be processed in Labrador.
If Labrador West had been the smelter location, only a finished product would have been shipped via Sept-Iles.
You don't hear Alberta bitching that they have to ship products via Vancouver, Prince George, Churchill, Thunder Bay, or Montreal...
Your arguement to use Sept Iles makes no sence Wally.
If Labrador does well the island benefits and vice versa. But if Quebec via Sept Iles profits from our resources then we as a whole lose.
It's unfortunate that the Labrador portion of our province doesn't have a year round ice free port because that would make the building of a smelter or whatever they go with in Argentia a mute point.
But as it stands the raw material has to be shipped out because of a lack of land based infrastructure so why not keep at least the primary processing in the province. Either way raw materials have ot be shipped to another port for secondary processing and then reloaded as processed product to be shipped to final rocessing sites. Which could be another source of economic development if it is kept in the province.
Really? Prove it. I'd love to know your source, or are you just regurgitating the BS you hear on VOCM and from "government".z
Prove what exactly? Anyone with a brain is aware of the atrocities that play out within big corporations like Exxon everyday. For the record, I live in the Detroit area and the last time I checked my antenna couldn’t pick up AM Radio from Newfoundland. Even so, are you trying to say that VOCM and the Government would be reporting various facts about Exxon? What colour is the sky in your world?
A couple other random facts that you can put in your pipe and smoke:
ExxonMobil had record breaking profits of over $36 billion in 2005! However, they still refuse to invest in developing cleaner, safer energy solutions.
Between 1998 and 2005, ExxonMobil spent $19 million to fund organizations working to undermine efforts to cut global warming pollution.
ExxonMobil has consistently fought progressive methods for weaning America off of oil for years. People with ties to Exxon have been hired by the US government and have been caught altering scientific reports about global warming. Specifically, Philip Cooney who monitors global warming policy and science for the Bush White House. Documents obtained by Greenpeace through the Freedom of Information Act reveal a trail of communication between Cooney and Exxon-funded think tanks including the George C. Marshall Institute and Competitive Enterprise Institute Cooney was hired by ExxonMobil June 2005, position as yet unknown. Was Chief of Staff at the White House Council of Environmental Quality from 2001- 2005. Before joining the Bush Administration, Cooney was a lawyer and "Climate Team Leader" at the American Petroleum Institute.
If Labrador does well the island benefits and vice versa.
Vice versa? Since when has Labrador benefitted from Newfoundland?
But if Quebec via Sept Iles profits from our resources then we as a whole lose.
How? But for Sept-Iles, Labrador City and Wabush would not exist: it is the only port, other than other ports in Quebec like Port-Cartier, which are feasible to ship iron ore out, and dolomite and fuel oil in.
It's unfortunate that the Labrador portion of our province
Why "Labrador portion of our province"?
Why not just stop at "Labrador"? Why do Newfoundlanders insist on these stupid "portion of the province" expressions, anyway?
But as it stands the raw material has to be shipped out because of a lack of land based infrastructure
Huh? What lack of land based infrastructure? What does that have to do with anything?
so why not keep at least the primary processing in the province.
You mean like at IOC in Labrador City? Primary processing, with the product shipped through the only port that makes economic sense: Sept-Iles. A boon for the economy of Labrador and the province as a whole.
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