Extended Life Expectancy for Grand Banks Oil Fields
The TSX moved into positive territory on Thursday thanks in part to Husky Energy’s announcement that it was increasing its estimate of the recoverable resources in the White Rose oilfield off Newfoundland and Labrador.
According to Husky, the southwestern section of the field is believed to contain 40 to 100 million barrels of recoverable oil. Earlier in the year Husky’s analysis of the western section of the field led to an increased estimate in that area to between 50 and 200 million barrels.
A spokesman for Husky said, "The results of this delineation program, along with the strong performance of the current development, should allow White Rose to significantly extend its production plateau."
In other oil news, in June of this year, the Canada-Newfoundland Offshore Petroleum Board revised its official estimates for the combined fields on the Grand Banks of the province. The offshore regulator said the fields now appear to hold 2.751 billion barrels of oil — up 696 million barrels from previous estimates. These estimates are generally considered to be on the conservative side and do not include the latest updated information from Husky.
Many business focused columnists for news services like the Globe and Mail, have been up in arms about stalled negotiations on the Hebron oil project in the province. Negotiations broke down when the companies involved in the consortium, led by Exxon, requested half a billion dollars in tax breaks from the cash strapped province in order to develop the field and were averse to allowing he province to take an equity position in the development.
Over the ensuing weeks these narrow minded and business blinded columnists have compared Premier Williams to the dictator Hugo Chavez and gone so far as to bemoan the hardship the little province of Newfoundland and Labrador is forcing on the big oil companies involved. Many have noted that the oil wells already in production have a limited life expectancy and that the new Hebron field needs to be developed right away in order to ensure the stability of the oil industry in province.
Locally this latest news from the offshore petroleum board and Husky Energy is seen as a vindication of the provinces stand and shows that these companies often come into projects with low ball estimates of their value only to increase them incrementally over time. The result is a much bigger profit for these companies than is identified when the initial royalty contracts with the province are signed.
While some have said Newfoundland and Labrador must develop new projects quickly, no matter if the direct benefits to the province are acceptable or not, many in the province now feel that the extended life expectancy of existing fields removes any pressure government may have been feeling about having to move forward with new developments at this time. These announcements provide the province with the time it needs to continue pushing for regulatory and legislative changes that will see the province gain added value from its valuable resources.
11 comments:
I often wonder about these Big Oil companies and if whether or not we can believe anything they say or do.
Who's to say that all these new finding aren't actually oil that's draining from other fields, or if they're actually drilling where they shouldn't.
A friend of mine works on a drill rig and he tells me sometimes the wells may go down straight so far, then go horizontal many kilometers, then down again, over, across, etc..
Is there anybody supervising their actions, really. I mean, anybody who doesn't stand to get rich based on their new oil findings, that is.
It's obvious they low-ball their #'s, even though they most likely know the truth before they drill one single hole.
The whole world over a barrell.
ABC
Good points. It wouldn't be the first time an oil company did a little "slant" drilling to essentially steal oil from a nearby field not under their control.
Oh brother..........here goes the speculation and paranoia that NL is famous for.
Don't kid yourselves--Hebron is just as vital as ever. The news about Husky only means status quo, not new jobs and opportunities for the province.
Anon who said Oh brother..........here goes the speculation and paranoia that NL is famous for.
ANON there is plenty of corruption going on in the Oil industry. I do not have time to paste articles on that topic here this morning, but during the week I will.
But all one has to do is go to the Internet and type in Corruption Oil Companies and you will find thousands of instances.
When our people speak out on blogs as to what the Oil industry is NOT doing here, why do people like you try to disrupt what is being said? NewfoundlandLabrador must get something out of that non-renewable resource called Oil, so that we, too, like Alberta can create economies here . Our oil has been used to create economies elsewhere in places like NovaScotia, New Brunswick and Alberta. It has to stop. We need jobs.
With that said just sit back and wait for the posts from those who are benefiting from our Oil in other provinces. It is corrupt in itself to have to listen to the whining from people who do not live here but enjoy the fruits of the resources that come out of this province and are used for economies in other parts of Canada and the World.
Totally wrong anon. The Husky announcement means:
1) extended work on the offshore for a longer time;
2) additional royalties for the provincial government;
3) a new well site that will provide some additional work.
Anon who said """Totally wrong anon""". I am not talking about any of what you are referring to above. I am referring to ourtight corruption like the Anon in a earlier post who made this statement """"drill rig and he tells me sometimes the wells may go down straight so far, then go horizontal many kilometers, then down again, over, across, etc...
I, too, will ask the question does NewfoundlandLabrador have anybody to inspect what those weasel Oil Companies are doing? If not NewfoundlandLabrador needs to have inspectors checking into this type of activity. It goes on in the world of Oil.
All one has to do is read articles written by some of the watchdog organizations and your eyes will be opened wide. There are thousand and thousand of stories archived on the Internet of the corruption that has gone on with big Oil, is going on with big Oil, and will go with big Oil.
Even in places like the Sudan, poor peasants have had their arms lobbed off because they got in the way of the Oil companies doing business. Big Oil Corporations are compassionless, heartless and ruthless.
I kept an article that appeared in Macleans Magazine on April 10, 2000
titled Freeing The Slaves Of Sudan.
It was written during the time Talisman, A Canadian Oil Co was operating in Sudan, later the pressure from concerned Canadians played on Talisman conscience and they exited the country. (I hope pressure from Canadians will pressure the oil Corporations involved in NewfoundlandLabrador oil will force them to do what is right for the benefit of NewfoundlandLabrador.
The story that appeared in Maclean's magazine was a sordid one on how Canadian interests had an influnce on the WAR in Sudan.
By the way according to the article that war saw close to two million dead and five million homeless.
A Mr. John Harker who was quoted in the article said that foeign oil company activities in Sudan, including TALISMAN had 'intensified the conflict' in Sudan.Despite company denials. Harker said that authorities cleared civilian populations to ensure the safety of oil workers and the security of the oilfields themselves near the town of Bentiu. The article goes on to say that even more damning, Harker found evidence that Sudanese government helicopter gunships and Russian Antonov makeshift bombers were regularly flying from, as well as being rearmed and refuelled at, an airstrip constructed by TALISMAN. "It is a prominent perception of southern Sudanese," Harker wrote. "that TALISMAN is in active collaboration with the government of Sudan, economically, politically, and militarily. It is also the perception of those southerners that the government of Canada is either supportive or indifferent to that collaboration. In short, they identify oil extraction not as a positive development, but as a major grievance with a Canadian label."
The above paragraphs came from a Maclean's magazine issued April 10, 2000.
Now that is a description of how big Oil treats people who are in their way for making billions.
The people involved were nomads who lived in the area in Sudan forever, but big Oil came to town and as a result many people were displaced and in some cases killed outright and some, when they disagreed or put up resistance, had both arms cut off. In this article two slaves, in this case they were men. are pictured with their arms cut off at the elbow. A statement beside the picture states 'They chopped off our arms and left us to die. I cannot do anything by myself. I might be better dead.'
Thankfully with pressure from Canadians Talisman exited the Sudan.
We also have to have a watchful eye on these Oil companies exploiting our oil.
Well, well, well. The tables have certainly turned haven't they?? When 'Big Oil" came to town to develope Hibernia, Terra Nova , and White Rose I didn't see all these negative posts.
But now that Hebron didn't go they way Williams demanded all of a sudden big Oil is to lame for all that is wrong in the world.
Typical, typical, TYPICAL Newfoundland response.
Gag me.
"But now that Hebron didn't go they way Williams demanded all of a sudden big Oil is to blame for all that is wrong in the world.
Typical, typical, TYPICAL Newfoundland response".
Once again Anon you are so right. If a Newfie can find a scapegoat they will use it for all it's worth!
An oil company that is out to make money?? Shocking news!! How could they even think of such a thing??
Get on board with the rest of civilization NL....and by the way the term "our oil, our resources" doesn't fly. They are all Canada's resources and you are part of Canada. Remember??
Yes NewfoundlandLabrador's resources are Canada's, but Canada does not want to do anything for NewfoundlandLabrador, just steal its resources and its people, and by doing so you are telling us to get the hell out of our homeland. You are a fine bunch of friends, no doubt.
At the moment there is an interview posted on CBC Radio St. John's that was conducted by Jeff Gilhooly with Economist Jim Sandford of the Canadian Auto Workers Union.
Mr. Standford was asked the question by Jeff Gilhooly "what might be the quantifying factor of such an out-migration of people from this province, as we saw in the past year, in terms of the life time earnings potential of everyone who leave NewfoundlandLabrador for Alberta and other parts of Canada?
Mr. Sandford put it into context for us on Jeff Gilhooly's show, when he estimated that the 4400 people who out-migrated from NewfoundlandLabrador last year had a dollar figure worth $5 billion dollars to Alberta's economy over a working life span of 30 years at an average income of $40,000 ** per year . He said that NewfoundlandLabrador's economy bore the costs of raising these people from childhood, it sent them to day care, school, college or university . Mr. Sandford said these people left the province of NL with a capital human value of over a million dollars each; and when NewfoundlandLabrador lost those people to Alberta IT HAD SUBSIDIZED a part of the country that needed it the least.
Mr. Sandford said that there was also another set of hard economic numbers involved WHERE NewfoundlandLabrador SUBSIDIZES the rest of Canada . NewfoundlandLabrador's GDP has grown substantially over the last few years. He said that these dollars don't trickle down into the pockets of NewfoundlandersLabradorians but instead go out of this province into the coffers of Corporations to subsidize other parts of Canada. Mr. Sandford put a figure of $3 to 4 billion dollars a year of corporate profits going out of NewfoundlandLabrador, up by 400% since 1999.
ANON - Please go to the CBC site and hear this intereview for yourself. It is coming out of the mouth of a Canadian Economist. I wonder will you take heed to what this Economist is saying. I warn you CBC only archives interviews for 7 days, it will be off their site by Tuesday of next week. It is titled Brain Drain.
THIS IS PAGE THAT '''BRAIN DRAIN''' IS ARCHIVED ON.
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Interview Archive November 2006
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NDP holds seat
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They lined up by the thousands - but only the skilled labour got a look-in. We talk to an Alberta job recruiter about what it means for the province's unskilled people thinking about heading west for work.
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Parking rules
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New heritage sites
Rocks, graveyards and graffiti. We take you to the Southern Shore for a look at some unusual newly designated heritage sites.
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Clarenville used cars
The mayor of Clarenville explains why his town has shut-out townie used car dealers.
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Lorraine Michael and the New Democratic Party held onto the district of Signal Hill-Quidi Vidi in Wednesday night's byelection. We speak with the newest member of the House of Asssembly.
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Trash talk
Mayors and councillors from the Avalon Peninsula prepare to voice their frustrations over plans for a regional dump.
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Brain drain
What to do about the unskilled? We talk with an economist about the quality of workforce that'll be left behind if the province keeps losing its skilled workers to Alberta.
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Pill shortage
Birth control is getting a little out of control for women who take either of two types of popular pills.
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Income Trusts
A local investment advisor drops by to tell us what to do with all those income trust shares you bought last week.
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Mainland conection
The province is getting a new fibre optic link to the mainland. We get details from one of the companies who put forward the plan.
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Proving Marconi milestone
Some say Guglielmo Marconi didn't actually receive that famed message on Signal Hill back in 1901. Now a group of radio enthusiasts hope an experiment will shed new light on the debate.
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Life in Fort McMurray
We've been hearing a lot about the exodus of workers from this province to Fort McMurray. With her view of the town as a place to live and work we speak with our network producer Heather Barrett, who just returned from an assignment there.
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