Final Agreement on 2 New NL Oil Projects Near
At the annual meeting of the Newfoundland and Labrador Oil Industries Association (NOIA) on Tuesday Premier Danny Williams told those in attendance that he's hopeful a deal for development of the Hibernia South oil field will be reached by the end of the year and he that expects to see a final contract on the larger Hebron oil development within a matter of weeks.
"We are moving closer, day by day, to signing that deal," Williams said.
"Both sides are working vigorously to conclude what has been an intense yet productive — and I mean very productive — negotiating process".
"I am fully confident that we will have positive news on that front in the very near future."
The Hebron oil development was a point of major disputes between industry partners and the Newfoundland and Labrador government just over a year ago when Williams informed the partners that his government wanted an equity stake and a richer royalty regime. After months of silence the oil companies returned to the table and, after agreeing to many of William's terms, last August a memorandum of understanding was signed. According to Williams, the final step in the process, before the project begins is now in the offing.
There had been rumors circulating for several days that the Premier would announce a final deal on the Hebron project during his address today but the Premier down played those rumors late last week by saying that he had indeed been shooting for this date but had no intention of rushing the details of the contract in order to accomodate it.
Both Hibernia South, estimated to contain 223 million barrels of oil and the Hebron field, estimated at around 750 million barrels, are long awaited developments that, when combined with the existing operations at the main Hibernia platform, White Rose and Terra Nova are expected to provide a major boost to Newfoundland and Labrador's already growing economy.
After Premier Williams' speech Glenn Scott, president of ExxonMobil Canada, a partner in both the Hebron and Hibernia projects, said, "I think we're all aligned and, you know, with everyone aligned and working as hard as they can, I think it's going to move quite quickly".
14 comments:
I hope this promise of prosperity for the people of Newfoundland and Labrador will prove to come to past.
I somewhow think, though, with the demand for Oil from so many directions, China, India, North America and many other countries which are trying to develop their economies economies,that this announcement is for real.
I can't wait!
Well anon, June 18, 2008 1:44 PM , I don't kow if your around the St Johns area ,but look at the price of homes.Even around CBS.But,hey it beats commuting in and out of Toronto everyday.
I truely believe that this is it.Watch out for what you ask for in life, because sometimes you just might get it.
Before the end of 2008:
Hebron deal will be finalized;
Hibernia South deal will be finalized extending the life of the project by 10 years.
2009:
60 years of survival under Canadian rule;
NL Moves off of equalization for the first time;
Hibernia reaches full cost recover and payout (meaning higher royalties for NL)
Decision on development of Lower Churchill.
There's gonna be one hell of a party!!!
Don't be too sure about that.
The national parties have already started to redesign the system so as to cater favor with the majority provinces in their never ending bid to win votes there.
Per capita Social and health transfers which don't take into account geographic social or economic factors like age of your population, rural versus urban cost of supplying social and health services, and lack of an economy or no or poor infrastructure.
No national party has a vision of nation building their only concern is electioneering and that means buying votes in ON/QU with minority provinces wealth and resources.
Any carbon tax whether it be Cap and Trade, Carbon tax or carbon tax and tax shifting must take into account that rural minority provinces economies are much more dependant upon fossil fuels in supplying resources commodities and the like to the majority provinces which are not as dependant upon fossil fuels because their economies aren't primarily per capita resource based but rather are supply service and manufacturing based which isn't as fossil fuel usage intensive ars resource based economies are. That and the majority provinces have alot more urban areas as well as predominantly are further south. They have well established public transit paid for in large part by the national parties in there never ending quest to win the next election.
Just one more way the national parties will redesign the system so as to benefit the majority provinces to win the next election.
Absolutely right NL-Expatriat.
Look at the Liberal or green carbon tax:
supposedly it's revenue neutral because people will get a break on income tax and in other areas but the price of using fuel will go up.
The logic is that by "deciding" to use less fuel you can keep more of your money and spend it on the things that matter to you.
Great in theory but not in practice.
People in places like cold Labrador or anywhere in eastern Canada who suffer through long cold winters can't "decide" to not heat their homes. It may have some benefit in BC or places like that where winter temperatures are much higher but not here and not up north.
What about those living in rural areas who must drive 20 or 30 kilometers to get to work. No mass trasit for us. Great for Toronto or Montreal though.
What about the Newfoundland and Labrador where, thanks to the fact that there is very little manufacturing here, nearly everything consumed by the residents has to be trucked, shipped or flown in? Don't tell me the added cost of fuel won't cause skyrocketing prices that will take back all potential savings on income taxes we might get from "deciding" to use less fuel.
This is a crock.
Now, what about the Cons plan? Well, I don't know because they really don't have much of one.
What a crock!
Annoynomous don't read to much into my comment.
I tend to agree with Dion's plan as so far as any stationary use of carbon like home heating fuel electric generation should come with a cost because there are alternative methods of generating that heat or electricity.
My point is just that unless incentives to replace fossil fuel stationary uses is included it doesn't actually do anything to change the real problem which is green house gases.
The thing is we have the technologies and supply systems to replace these uses for fossil fuels and as such there is no reason to continue using them for these uses.
Things like heat pumps are far more efficient than fuel oil furnaces but the capital cost outlay to replace a fuel ol furnace is more than most people can afford.
I want a national vision for the future not electioneering at the expense of remote rural and minority provinces.
Things like a nationla energy corridor, Twinning of the railway system so it is unidirrectionsl and not bi directional like most of it is now.
Nuclear power to replace coal and bunker c electric generation.
Wind energy, Lower churchill loan guarantee/co-signer.
National hydrogen energy distribution grid.
I also mean truly national and not notional like we have now with our railway CNR Continental Notional Railway.
We have all kinds of energy to be developed here in NL but because of our systemically flawed political system and Quebecs dog in the manger attitude towards our resources they will lobby the national parties to block any development which doesn't benefit QU.
No national political party will ever stand up in the house of commons and call Quebec out on their dog in the manger attitude because it would mean a loss of a possible 75 seats in the next election versus NL's 7 seats.
NL-First, It's time...
God grant me the Serenity to accept the things I Cannot change…
Courage to change the things I can
And Wisdom to know the difference
Well Ex-pat, there are a few things that I would agree with you on, and then there are a few things that I don’t. First I would like to say that there are more then a few things that we seem to see in the same light.
“We have all kinds of energy to be developed here in NL but because of our systemically flawed political system and Quebec’s dog in the manger attitude towards our resources they will lobby the national parties to block any development which doesn't benefit QU.”
This statement is one of them. As far as Quebec goes it will use its influence in Canada’s capital to do nothing but flex its political muscle to steal or use whatever it can to reinforce its “revenge of geography”, I believe that a writer from a local St Johns paper has done a great story on that. A Must read for every Labradorean and Newfoundlander.
The mood coming from the province now seems to say that everything is good. Everything is great now and Danny Williams has done a great job. Now we can rest and relax for a moment.
This is our greatest weakness. And, to think that the road is going to be easier now that we have this money, it is not. What we do have is a chance to build a province that will reflect the will of the people that live in it. Now we have the chance to keep our sons and daughters home. No more broken families. No more hopeless wondering like gypsy’s thru the wilderness. Now we have a chance to show the world what kind of place we wish our home to be.
With all sincerity, Ex-pat, I myself really don’t care about national corridors for energy. I really don’t care what Canada wants to build, that’s them and in their house.
They have shown us for the last 59 years that when they want something, they will build it and they will come. All we have to worry about is how we are going to sell it to them. That’s all.
Use what we have to show the world how we have been used and beaten down by the far soupier and ruthless country called Canada .Show the world how the Government of Canada does not live up to their agreements .Starting with Term 29. Show the world how the people of Labrador have to heat their homes with generators while Quebec gets millions from Churchill Falls. Show the truth and they will see.
Danny Williams does not have the right idea. When this next election comes he has said that he personally will be involved in telling everyone that “Steve” is not an honorable man. What Mr. Williams should be doing is endorsing every single member of a provincial party, be them from the NLFirst Party, or from the Newfoundland and Labrador Party. This is what we need more then any power corridor. What we need now more then ever is a “REAL VOICE IN CANADA.”
Hey the people have spoken and they want to be Canadian. Its time to start acting like it.
“Long Live Republic Of”
Anon of June 19, 2008 7:23 PM - I agree with you on almost every point. But since I have no desire to run for any political party, since that isn't my cup of tea, how do we get the candidates to come forward?
“Anon of June 19, 2008 7:23 PM - I agree with you on almost every point. But since I have no desire to run for any political party, since that isn't my cup of tea, how do we get the candidates to come forward? ”
How do we get people to come forward? Anon, that’s the million dollar question is it not? I can say this.
How do the main federal party’s do it? How do they do it in America? How do they do it in Britain?
Learn from the example of others, and choose the path that best suites our need. Incorporate a system used by others to suite the needs and plans of what we need or wish to accomplish.
You know, this really smart man (yes it’s my father) once told me something. You cannot possibly know everything, no matter how smart you may think you are there is always someone who knows more. Find that person. And incorporate that knowledge into what you need to accomplish.
1) They have done it in Alberta.
http://www.separationalberta.com/newsoped.asp
2) They have done it in Quebec.
http://www.pq.org/
3) They have done it in Saskawean
http://www.saskparty.com
Why can we not find it within ourselves to come forward? Because, we are not going to the right people. I myself would rather vote for a retired fisherman that has lost everything then for some smart ass, who is going to tell me what I need in my riding. Look out side the box folks.
Hey let those that have the ability to do such work know that Canada pays great at the federal level. Like I said, if the people have spoken and want to be apart of Canada, start acting like it.
Greed is a powerful tool .Just look at Ottawa. Sweet God, look at Quebec. ;)
Sorry for cluttering up your Blog Myles.
“Long Live Republic Of “
Calvin, never apologize for saying what's on your mind.
From the Regina Leader Post:
http://www.canada.com/reginaleaderpost/columnists/story.html?id=9c2d78cb-70f2-4753-ab14-9055af264d3e
Forget, for a moment, the inherent unfairness in Dion's "Green Shift" to a province like Saskatchewan, with a relatively small population base (that won't capitalize as much on income tax reductions in this policy), but a huge fossil fuel base (that will bear the brunt of its taxation plans).
What's most maddening is how much of a slap it is to the principle that provinces like Saskatchewan own our natural resources. Dion is now telling us, "So what if the western provinces do own the oil and gas? The federal government can simply tax the end product and transfer the bulk of any benefit to those living in our electoral base in the east."
What's sadly ironic is that all Dion had to do was throw us in the West a bone -- something to acknowledge the resources are ours. That's something we haven't had since long before Prime Minister Stephen Harper broke his $800-million-plus-a-year promise to Saskatchewan to remove nonrenewable resources from the equalization formula.
Stay Vigilant!
Glenn
Somebody help me out please. I may be an idiot but how does a carbon tax, that puts a tax on businesses / individuals burning fossil fuels, hurt oil producers like NL or Alberta or Sask?
They produce the oil, it's exported and burned somewhere else, wouldn't they be OK?
(Except perhaps for the oil sands that uses gas to extract the oil)
Am I missing something here?
"how does a carbon tax, that puts a tax on businesses / individuals burning fossil fuels, hurt oil producers like NL or Alberta or Sask?"
To produce energy requires energy. Hibernia burns natural gas to produce the energy it requires to operate. Terra Nova, White Rose and so will Hebron require huge amounts of energy to produce oil, maybe not on the scale of the oilsands but it is still very significant. Don't forget all the shipping and helicopter trips to offload supplies, goods and personnel. More costs will mean less royalty revenue.
Newfoundland
North Atlantic Refinery, Come by Chance
1,445,729 tonnes CO2e (X $35 per tonne = $50,600,515.00)
Holyrood Thermal Generating station 1, 300,000 tonnes CO2e (X $35 per tonne = $45,500,000.00 divided by 450,000 people = $101.11per person per year equivalent. This power is used mostly for the people and industry on the Avalon.
Average output per person in NL is 16.4 tonnes per person X $35 per tonne= $575 per person (total includes cost per industry related activity and personal activity as related per capita)
Inco, IOC, and any other mining operations and future smelting will use huge amounts of energy. Marine Atlantic and the trucking industry also uses power to operate. All costs passed onto the consumer of those goods. Than you have to account for the huge amount of heating oil that we use here in the province. Not exempt.
Take a look at hospitals, universities and public buildings. Not exempt. Who will pay for the added burdens on those intitutions? The taxpayer.
AB already has a carbon tax of 15$ per tonne and a cap and trade system that is applied to business and industry only. It also is an intensity based program meaning an industry can't just scale back producing less and thus emitting less. It is still dinged for the emissions. The difference between Dion's plan and AB's plan is that in AB that money is kept within the province to be spent on renewables sources or traded to those industry/businesses who have taken steps to reduce emissions and have "cap" room. This money is being spent on wind energy, solar energy, biomass and research and development within AB as well there's the push to use nuclear energy which has very little CO2 emissions.
Dion's plan is about redistributing the wealth of NL, AB, & SK to ON and QUE in income tax reductions (higher population)and this "new" money is not earmarked for use in R&D or to be spent on renewables but will be used, according to Dion's own words, for an increased child tax benefit (National Daycare). There's no plan to enable people to make their homes energy efficient. No plan to enable industry to purchase and use new technology. There are no targets set out, no benchmarks under Dion's plan. There is absolutely nothing in his plan to reduce CO2 emissions or anything to help the environment. Isn't that what the plan is supposed to be about?
All this plan will do is either give Arpurr his majority and end Dion's tenure as head of the LPC or tear the country apart.
Glenn
The carbon tax isn't paid by the producer it's paid by the wholesaler. More Harper scaremongering. If you can't fight something with fact fight it with lies.
Post a Comment