Hibernia South deal finalized

Moira Baird
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The Hibernia South deal was officially signed Tuesday - giving the province a 10 per cent equity stake in the southern part of the oilfield for $30 million.

It's the province's largest equity stake in an offshore oilfield.

Acting premier Kathy Dunderdale said the Hibernia South extension will pump about $13 billion in royalties, equity profits and taxes into the province over the life of the project.

The Hibernia South deal was officially signed Tuesday - giving the province a 10 per cent equity stake in the southern part of the oilfield for $30 million.

It's the province's largest equity stake in an offshore oilfield.

Acting premier Kathy Dunderdale said the Hibernia South extension will pump about $13 billion in royalties, equity profits and taxes into the province over the life of the project.

That's up from previous provincial projections of $10 billion in revenue.

"Based on the most recent forecast information we've seen, the value of the project to the province has increased from when we signed the memorandum of understanding last June," Dunderdale said.

Hibernia South is the third offshore equity deal the province has signed in as many years.

The provincial government is forecasting combined revenues of $39 billion from all three deals.

Of this, $6 billion will come from the White Rose expansion fields, $13 billion from Hibernia South, and $20 billion from the Hebron project.

Calling Hibernia a pioneer offshore oil development, Dunderdale said, "It has been the cornerstone of this industry."

Hibernia has pumped about 660 million barrels of oil since 1997.

Dunderdale said the offshore oil industry now accounts for nearly 40 per cent of the province's gross domestic product - the total value of all goods and services produced in Newfoundland and Labrador.

Glenn Scott, president of ExxonMobil Canada, said the Hibernia South agreement allows the oilfield to reach its full potential.

"It's truly a Newfoundland and Labrador success story."

"It's the foundation for the oil and gas industry here, and it's powering the provincial economy."

He said the companies and the province set February as the target month to close the Hibernia South deal.

That meant long hours for negotiating teams on both sides.

"They've been working for months, and for several weeks running they've been working night and day, weekends and holidays ... to allow us to develop this very valuable resource," Scott said.

On Feb. 1, the Hibernia partners filed a southern extension development plan with the offshore petroleum board.

Vetting and approval of that plan could take as little as six months - drilling wells from the Hibernia platform could begin as early as 2012.

"We already started drilling some of the Hibernia extension wells - those that we can reach from the platform," Scott told reporters.

Those wells that can't be drilled from the platform will be done by a separate, mobile rig.

A portion of Hibernia South started producing oil in November. Dubbed the AA Block, that portion of the field contains an estimated 48 million barrels of crude oil.

The capital cost of Hibernia South has been pegged in the $2-billion range in 2008. Since then, there's been downward pressure on both labour and construction costs.

Scott wasn't getting into those details Tuesday.

"We're currently working to define the plans for development and it's really too soon to pinpoint a specific number," he said. "We're always looking to try to increase the efficiency and effectiveness of our development."

Ed Martin, president and CEO of Nalcor Energy, declined to discuss the capital costs as well.

"What's been driving costs in many cases has been the heat of the economy over the past five or six years, which has slowed down," he said. "We all are taking a look at what implications that has."

Martin said developing Hibernia South will require plenty of drilling. Supplying drill rigs with staff, pipe, drilling fluids and equipment is bread-and-butter work for many local offshore companies.

"We cannot turn our back on the amount of employment and benefits that drilling brings to this province," he said.

Dunderdale said all the Hibernia South engineering and construction work that can be done in the province will be done here.

"It is expected that the majority of expenditures required for the Hibernia South extension will be spent locally, inclusive of drilling which is the largest component of project capital costs," she said.

"Fabrication work and subsea installations will be similar to the work performed as part of the recent North Amethyst project."

For North Amethyst, the first expansion of the White Rose oilfield, steel modules and other production equipment were built at Bull Arm.

Dunderdale said the newest equity stake gives the province a wealth of geological data about the Hibernia oilfield.

"This geological information will be useful in identifying possible future expansions of this impressive field - adding to our knowledge," she said.

Martin echoed some of those comments.

"To be at the table I believe is just absolutely invaluable.

"Now, we're in there participating in the decisions, hearing the dialogue, knowing what's happening."

The finalized Hibernia South deal also puts to rest a decade-long dispute between the province and oil companies over eligible crude oil transportation costs.

Those costs are charged on every barrel of Hibernia crude shipped to market, and they are deducted from the formula that determines the royalties paid to the province.

Under the deal, the province's interpretation of the formula will be in effect between 1997 and July 1, 2009 - meaning a $160-million, retroactive payment to the provincial government to settle the dispute.

Afterward, the same transportation cost rules in the Hebron agreement will be applied to Hibernia.

The Hibernia partners have also committed to spending at least $130 million to $150 million on research and development in the province under rules set by the offshore petroleum board.

That spending will also include $10 million in "legacy" projects during the first three years of production.

Gender equity will also apply to all phases of the Hibernia South development.

mbaird@thetelegram.com

Organizations: Hibernia, ExxonMobil Canada, Nalcor Energy

Geographic location: Hibernia South, White Rose, Hebron Newfoundland and Labrador

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Recent comments

  • Jonathan
    July 02, 2010 - 13:35

    Every time something good is announced all people seem to do is criticize before knowing what they are talking about.

    The government knows Oil Revenue will not be around forever and ARE working on projects and spending money investing in sustainable economic alternatives for the long run.

    Wind Generated electricity, Hydro, marine technology research. Ever wonder why the government spends money on research including at our own Memorial University.

    Believe it or not the government are just as forward thinking as many of the criticizers claim to be.

  • MickeyP
    July 02, 2010 - 13:32

    James from NL. makes a good point. but pay off some debt first. green energy, especially wind energy is starting to make it's way towards nuclear energy and hopefully surpasses it. God knows NL. gets enough wind to keep those turbines spin'n.

  • don
    July 02, 2010 - 13:32

    What utter nonsense! All of this so called good news and self congratulation is predicated on the volatile price of oil. Simply put, if oil goes up in price Newfoundland will benefit greatly, if oil goes down in price, Newfoundland will not benefit as much. That is a big gamble to take on our future. Do the people who run our government realize that in a few years technological changes will reduce oil as the primary fuel for propulsion in the vehicles we drive, there will be less dependence on oil to heat our homes and there will be a major reduction in petroleum based manufactured goods? In a few years oil will be worth less than $40 a barrel! Demand for oil will diminish significantly. Newfoundland's economy will be dependent on a resource that will eventually be completely exhausted. Just like the fishery before it, the price of oil will eventually diminish to low levels and the resource will run out! Then what? In the short term, it would wise for the Government to pay off its $10 billion debt and create conditions conducive to attracting diversified business and development before the oil well goes dry! Otherwise, it will be back to square one, budget deficits and more borrowing as Newfoundland tries to stay afloat. This is just another in a series of agreements to strip our natural resources in return for a few jobs, votes and easy money for the Government to squander. Why worry about the future? I guess the Government mantra of today is: Eat, drink and be merry for tomorrow our oil wells and treasury will go dry!

  • Sounding
    July 02, 2010 - 13:31

    Noticed Ed Martin was there. Why? Just asking

  • James
    July 02, 2010 - 13:31

    A forward thinking government would start using this money to invest in green energy so that when the oil does run out we will have something to fall back on.

    Or we can continue to stick our heads in the oil sand.

  • Taxpayer
    July 02, 2010 - 13:30

    I just hope they don't blow it all giving tax breaks to companies that are making millions from the offshore.

  • don
    July 02, 2010 - 13:29

    To Saucy Face: I was concerned that the billions of dollars that the Canadian taxpayers have injected into the education system in Newfoundland since 1949 may have been totally wasted. I was surprised by the level of intellectual commentary which is demonstrated daily on these postings. In particular, your well reasoned and logical rebuttal of my remarks was very blunt, thoughtful, enlightening and demonstrative of the level of your intelligence. Keep your well informed commentary on the issues coming! While your remarks were succinct, you are a Major Original Renaissance Orator Nevertheless!

  • Stop the Racket
    July 02, 2010 - 13:27

    Bert old buddie you forgot to mention also that Danny Williams discovered all this oil himself and ever agreement made with the oil companies was all his idea no other government before him did anything to make this happen. The world is wonderfull and its all because of Danny Williams. No previous PC or Liberal Government ever did anything to make sure royalties were in place and would kick in at various times over the years it was ALL Dannys ide. Isnt that right Bert? Its not about Danny being in the right place at the right time Bert. NO NO surely not that. Heres a news flash Bert just for you. You yourself Bert could be Premier of this great province of hours and all this oil money would still be flowing in because of the hard work of previous governments especially the PC Government of Brian Peckford and the hard work of John Crosbie when he was in Ottawa. Then again I am quite sure you think that even way back then somehow Danny Williams had a hand in all this. I bet you think it was all because of him. Blind cult followers tend to think exactly the way you do Bert. Then again thats about all we have come to expect from you anyhow Bert. This government lead by Danny Williams has done some great things Bert. Bet you never expected me to say that did you? Your biggest problem Bert is thats all you see and thats all you focus on is the good things and you refuse to see the corruption and coverups that are coming from the office of the Premier. Oh well even Castro has done some great things in Cuba and we all know how that story goes.

  • Saucy Face
    July 02, 2010 - 13:27

    Blow it out your ear Don from Newfoundland and Labrador you crooked old windbag

  • Paul
    July 02, 2010 - 13:26

    Just a fact that oil is such a high percent of our GDP. Just happens to be worth a lot. But it will run out so we should first and foremost use this cash cow to pay off all or as much of our debt as possible. Stop wasting money on interest charges. This before any more extorted gov't salary hikes, reduce the number of ridings and thus support staff, don't play with expanding services, just improve what we have. Then we have to fight to get the fishery under our control and for our benefit, not the EU's, as feeding people will always be in vogue. Then if we want to create a better forest industry start forcing anyone who cuts down a tree to plant several, at their expense. This is done in Sweden and they have a good forest industry in a country the size of our province. Wind energy is underused. Develop that along with L.Churchill and cut energy rates to attract industry. How about shipping some cheap electricity to Lab West and build a modern smelter and produce steel rather than send it out as pellets. Better yet, lets make whatever steel parts people require. Lots of things we can do.

  • Abated
    July 02, 2010 - 13:26

    10W40 from nl, you have 'baited breath' ? Do you mean, like worms ? Gross. I remember Phoebe Tilley having the same condition once before.

  • Funky
    July 02, 2010 - 13:25

    Good stuff

  • Bert
    July 02, 2010 - 13:25

    Stop the racket thanks for the vote of confidence you gave me that I could become the premier of this province of HOURS . Ours I believe is the correct spelling in this context. This is more than the province is prepared to give Yvonne!!!

  • Notta chance
    July 02, 2010 - 13:25

    Dunderdale said the offshore oil industry now accounts for nearly 40 per cent of the province's gross domestic product - the total value of all goods and services produced in Newfoundland and Labrador.
    We are not diversified.....Nearly half of our revenue come from oil....and nothing else.....nice just the same but, as the saying goes 'Don't put all your eggs in one basket'....which is what we are doing.....

  • Keepin' It Real
    July 02, 2010 - 13:24

    The fishery is gutted, the forestry is gutted, but we have some possibility for income from oil. So, Notta chance and Another Act of Grief , are you proposing that we simply ignore these opportunities?

    How about you go out and show us the way? Go tap into these great moneymaking industries you obviously have in mind instead of waiting for the government to do it for you?

  • My3Cents
    July 02, 2010 - 13:24

    Since it is a non-renewable resource a major portion must be used to pay down the debt. At least when the added income dries up we won't have this around our necks. It shouldn't be used to pave roads/ build ferries to nowhere. For votes. That would be all fine and dandy if we DID NOT have that debt.

  • Saucy Face
    July 02, 2010 - 13:23

    I swear to God if Danny Williams went to door and personally handed a million dollars to every single person in the province, the same people who slam him every day would still complain that he isn't doing enough.

  • member of the 20%
    July 02, 2010 - 13:21

    hey Bert...can I get an invite to the party for this forecast? I didn't get one to the last party Dan promised. Did it ever go ahead? Or, did they....re-calculate??
    And, inquiring minds like mine need to know...to further distance themselves from the Federal Conservative Party, will Dan's gang run under the Have Not Party banner in the next Provincial Election?
    I know where you can get a deal on a logo!

  • I. P. Freely
    July 02, 2010 - 13:21

    Notta, that means that 60% of our GDP comes from products other than oil, and nothing else. I think everyone realizes that oil is non-renewable, that is why the premier is doing what he can to ensure that we receive the maximum return on resource. People keep saying don't put your eggs in one basket...I don't see how that has anything to do with this present situation. The province is extreamly rich in minerals, and the fishery is projected to turn over close to a billion dollars in 2010. Then there is the hydro issue, which the premier is working hard at bringing to fruition. This is a good news story, and while imbeciels like Danny Dumberesque may jump up and down, like a spitety child, it doesn't change the fact that even at todays oil prices(which are bound to increase) we will see a further 3 billion from this project.

  • I. P. Freely
    July 02, 2010 - 13:20

    Don are you for real? or is this some kind of trolling like willie hunt does so successfully?

  • Bert
    July 02, 2010 - 13:19

    Danny ol Danny what are you doing bye!!! Since you got in you've ruined everything the Liberals have done. You have taken our province from a Have not to a Have province in your first term. Now you are making us a richer province. If you keep this up it will take the Liberals 2 terms to give it all away again!!! Maybe not they should still be able to do it in 2 years. The spin doctors are already at work here fruitlessly trying to make this look bad. C'mon Graham, Phoebe, and Polly get your venom in. Notta chance from Nl, I like your spin!!! You are saying that we should ignore this deal because we are putting all our eggs in one basket. Give your head a shake man and don't ever use your real name. You would not want anyone to know that it was you who made such an idiotic statement!

  • 10W40
    July 02, 2010 - 13:19

    Yes Notta, we depend significantly on oil revenues, and we can be thankfull for that.

    The fishery is going to require drastic changes if it is going to be a viable industry and year round employer. The paper industry is whittling away all over North America, not just in this province.

    On the other hand, mining is one of the bright spots. Tourism seems to be growing, albeit slowly.

    We cannot expect Government to create jobs, but merely create an environment for those best suited to do so. High taxes are the biggest dis-incentive to future prosperity.

    I now wait with baited breath for WMJ, E.H. and their like minded minnions to spew their partisan Liberal venom.

  • Bob
    July 02, 2010 - 13:18

    Yes!!... Great points from Notta chance & Another act of grief!! Wake up Danny boy, lets get out of the oil business and give up billions and billions of dollars. Shut her down because it's a non-renewable resource, we should invest in something else. It blows my mind the amount of common sense some people have!!

  • Manny
    July 02, 2010 - 13:18

    Just be careful of Harper. He may want to steal somemore from NL. Way to go NL.To the haters and the pessimists...get a life.

  • Jim
    July 02, 2010 - 13:14

    It is a great idea to used oil wealth to build and diversify the province. With pressure from the people, I am sure that this is something future govenrments will do. Finally, it is nice to see that we are no longer giving away the house.
    Now, on to the lower Churhill...

  • Michael
    July 02, 2010 - 13:12

    Great news! Hibernia South will produce more oil, but it might also lead to new discoveries in the process.

    I say let's get the oil out of the ground and hopefully, the gas as well. This resource will provide revenues for the government to pay for health care, education, infrastructure improvements, and hopefully lower taxes. Some people complain about fossil fuels and say, Go Green, but that is unrealistic!! The problem with green energy is that it doesn't supply any profits for the government with the exception of Hydro. Green Energy is useless when it comes to creating revenues for the government. Useless!! Green energy(solar, wind) creates no wealth for the government which is a fundamental setback for Green Energy.
    Anyway, if Hibernia South is successful, then you will see other extensions come on line at Hibernia. I am a little optimistic, but Hibernia and Hibernia South and all of its reservoirs will eventually produce around 3 billion barrels of oil or more from this world class field. That is not even including the untold riches of natural gas and natural gas liquids that will start-up around 2020!



    As for oil money estimates, I say don't put specific figures on it!! Predict low and enjoy the windfalls. That's all you can do! Don't start estimating oil will be high all the time like the William's government did the last couple of years. Estimating high oil prices will only put you in the red, so if I have any advice for the William's government, is that to think reasonably about oil prices and don't over shoot the price.

    Hibernia and Hibernia South will be a boon for Newfoundland for the next couple of decades. Oil isn't going anywhere for awhile. New technology is not good enough yet to replace fossil fuels. Remember, petroleum products are much more than the oil you put in your car or oil tank.

    Hibernia and Hibernia South will be cash cows for Newfoundland for the next 20 years. And that is a good thing!

  • Jerome
    July 02, 2010 - 13:12

    Every time something good is announced all people seem to do is criticize before knowing what they are talking about.
    Like the fibre optic deal maybe?

  • 10W40
    July 02, 2010 - 13:11

    Y'all should check out 'Sir Robert Bond (toilet) Papers', the gang who hang around there are your typical liberal shills who see nothing good happening in this province....unless of course a liberal has their fingerprints on it, am I right Sounding Off from NL and WJM?

    Interesting it is that 'Sounding Off from NL ' has the same diction as the head honcho at Bond Papers, interesting indeed.

  • W
    July 02, 2010 - 13:11

    10W40, I can only dream of having minions.

  • W
    July 02, 2010 - 13:09

    Jim from NL writes: It is a great idea to used oil wealth to build and diversify the province.

    Perhaps it is, Jim.

    Perhaps it is.

    There's no way of knowing though, until that actually happens. And it certainly isn't happening right now.

  • Another Act of
    July 02, 2010 - 13:09

    Wonder how we will all feel when the oil industry goes the same way as the fishery?

    None renewable resources end people. Wake up.

  • Jonathan
    July 01, 2010 - 20:25

    Every time something good is announced all people seem to do is criticize before knowing what they are talking about.

    The government knows Oil Revenue will not be around forever and ARE working on projects and spending money investing in sustainable economic alternatives for the long run.

    Wind Generated electricity, Hydro, marine technology research. Ever wonder why the government spends money on research including at our own Memorial University.

    Believe it or not the government are just as forward thinking as many of the criticizers claim to be.

  • MickeyP
    July 01, 2010 - 20:21

    James from NL. makes a good point. but pay off some debt first. green energy, especially wind energy is starting to make it's way towards nuclear energy and hopefully surpasses it. God knows NL. gets enough wind to keep those turbines spin'n.

  • don
    July 01, 2010 - 20:20

    What utter nonsense! All of this so called good news and self congratulation is predicated on the volatile price of oil. Simply put, if oil goes up in price Newfoundland will benefit greatly, if oil goes down in price, Newfoundland will not benefit as much. That is a big gamble to take on our future. Do the people who run our government realize that in a few years technological changes will reduce oil as the primary fuel for propulsion in the vehicles we drive, there will be less dependence on oil to heat our homes and there will be a major reduction in petroleum based manufactured goods? In a few years oil will be worth less than $40 a barrel! Demand for oil will diminish significantly. Newfoundland's economy will be dependent on a resource that will eventually be completely exhausted. Just like the fishery before it, the price of oil will eventually diminish to low levels and the resource will run out! Then what? In the short term, it would wise for the Government to pay off its $10 billion debt and create conditions conducive to attracting diversified business and development before the oil well goes dry! Otherwise, it will be back to square one, budget deficits and more borrowing as Newfoundland tries to stay afloat. This is just another in a series of agreements to strip our natural resources in return for a few jobs, votes and easy money for the Government to squander. Why worry about the future? I guess the Government mantra of today is: Eat, drink and be merry for tomorrow our oil wells and treasury will go dry!

  • Sounding
    July 01, 2010 - 20:20

    Noticed Ed Martin was there. Why? Just asking

  • James
    July 01, 2010 - 20:19

    A forward thinking government would start using this money to invest in green energy so that when the oil does run out we will have something to fall back on.

    Or we can continue to stick our heads in the oil sand.

  • Taxpayer
    July 01, 2010 - 20:18

    I just hope they don't blow it all giving tax breaks to companies that are making millions from the offshore.

  • don
    July 01, 2010 - 20:17

    To Saucy Face: I was concerned that the billions of dollars that the Canadian taxpayers have injected into the education system in Newfoundland since 1949 may have been totally wasted. I was surprised by the level of intellectual commentary which is demonstrated daily on these postings. In particular, your well reasoned and logical rebuttal of my remarks was very blunt, thoughtful, enlightening and demonstrative of the level of your intelligence. Keep your well informed commentary on the issues coming! While your remarks were succinct, you are a Major Original Renaissance Orator Nevertheless!

  • Stop the Racket
    July 01, 2010 - 20:15

    Bert old buddie you forgot to mention also that Danny Williams discovered all this oil himself and ever agreement made with the oil companies was all his idea no other government before him did anything to make this happen. The world is wonderfull and its all because of Danny Williams. No previous PC or Liberal Government ever did anything to make sure royalties were in place and would kick in at various times over the years it was ALL Dannys ide. Isnt that right Bert? Its not about Danny being in the right place at the right time Bert. NO NO surely not that. Heres a news flash Bert just for you. You yourself Bert could be Premier of this great province of hours and all this oil money would still be flowing in because of the hard work of previous governments especially the PC Government of Brian Peckford and the hard work of John Crosbie when he was in Ottawa. Then again I am quite sure you think that even way back then somehow Danny Williams had a hand in all this. I bet you think it was all because of him. Blind cult followers tend to think exactly the way you do Bert. Then again thats about all we have come to expect from you anyhow Bert. This government lead by Danny Williams has done some great things Bert. Bet you never expected me to say that did you? Your biggest problem Bert is thats all you see and thats all you focus on is the good things and you refuse to see the corruption and coverups that are coming from the office of the Premier. Oh well even Castro has done some great things in Cuba and we all know how that story goes.

  • Saucy Face
    July 01, 2010 - 20:14

    Blow it out your ear Don from Newfoundland and Labrador you crooked old windbag

  • Paul
    July 01, 2010 - 20:13

    Just a fact that oil is such a high percent of our GDP. Just happens to be worth a lot. But it will run out so we should first and foremost use this cash cow to pay off all or as much of our debt as possible. Stop wasting money on interest charges. This before any more extorted gov't salary hikes, reduce the number of ridings and thus support staff, don't play with expanding services, just improve what we have. Then we have to fight to get the fishery under our control and for our benefit, not the EU's, as feeding people will always be in vogue. Then if we want to create a better forest industry start forcing anyone who cuts down a tree to plant several, at their expense. This is done in Sweden and they have a good forest industry in a country the size of our province. Wind energy is underused. Develop that along with L.Churchill and cut energy rates to attract industry. How about shipping some cheap electricity to Lab West and build a modern smelter and produce steel rather than send it out as pellets. Better yet, lets make whatever steel parts people require. Lots of things we can do.

  • Abated
    July 01, 2010 - 20:12

    10W40 from nl, you have 'baited breath' ? Do you mean, like worms ? Gross. I remember Phoebe Tilley having the same condition once before.

  • Funky
    July 01, 2010 - 20:12

    Good stuff

  • Bert
    July 01, 2010 - 20:11

    Stop the racket thanks for the vote of confidence you gave me that I could become the premier of this province of HOURS . Ours I believe is the correct spelling in this context. This is more than the province is prepared to give Yvonne!!!

  • Notta chance
    July 01, 2010 - 20:11

    Dunderdale said the offshore oil industry now accounts for nearly 40 per cent of the province's gross domestic product - the total value of all goods and services produced in Newfoundland and Labrador.
    We are not diversified.....Nearly half of our revenue come from oil....and nothing else.....nice just the same but, as the saying goes 'Don't put all your eggs in one basket'....which is what we are doing.....

  • Keepin' It Real
    July 01, 2010 - 20:09

    The fishery is gutted, the forestry is gutted, but we have some possibility for income from oil. So, Notta chance and Another Act of Grief , are you proposing that we simply ignore these opportunities?

    How about you go out and show us the way? Go tap into these great moneymaking industries you obviously have in mind instead of waiting for the government to do it for you?

  • My3Cents
    July 01, 2010 - 20:09

    Since it is a non-renewable resource a major portion must be used to pay down the debt. At least when the added income dries up we won't have this around our necks. It shouldn't be used to pave roads/ build ferries to nowhere. For votes. That would be all fine and dandy if we DID NOT have that debt.

  • Saucy Face
    July 01, 2010 - 20:09

    I swear to God if Danny Williams went to door and personally handed a million dollars to every single person in the province, the same people who slam him every day would still complain that he isn't doing enough.

  • member of the 20%
    July 01, 2010 - 20:05

    hey Bert...can I get an invite to the party for this forecast? I didn't get one to the last party Dan promised. Did it ever go ahead? Or, did they....re-calculate??
    And, inquiring minds like mine need to know...to further distance themselves from the Federal Conservative Party, will Dan's gang run under the Have Not Party banner in the next Provincial Election?
    I know where you can get a deal on a logo!

  • I. P. Freely
    July 01, 2010 - 20:05

    Notta, that means that 60% of our GDP comes from products other than oil, and nothing else. I think everyone realizes that oil is non-renewable, that is why the premier is doing what he can to ensure that we receive the maximum return on resource. People keep saying don't put your eggs in one basket...I don't see how that has anything to do with this present situation. The province is extreamly rich in minerals, and the fishery is projected to turn over close to a billion dollars in 2010. Then there is the hydro issue, which the premier is working hard at bringing to fruition. This is a good news story, and while imbeciels like Danny Dumberesque may jump up and down, like a spitety child, it doesn't change the fact that even at todays oil prices(which are bound to increase) we will see a further 3 billion from this project.

  • I. P. Freely
    July 01, 2010 - 20:03

    Don are you for real? or is this some kind of trolling like willie hunt does so successfully?

  • Bert
    July 01, 2010 - 20:02

    Danny ol Danny what are you doing bye!!! Since you got in you've ruined everything the Liberals have done. You have taken our province from a Have not to a Have province in your first term. Now you are making us a richer province. If you keep this up it will take the Liberals 2 terms to give it all away again!!! Maybe not they should still be able to do it in 2 years. The spin doctors are already at work here fruitlessly trying to make this look bad. C'mon Graham, Phoebe, and Polly get your venom in. Notta chance from Nl, I like your spin!!! You are saying that we should ignore this deal because we are putting all our eggs in one basket. Give your head a shake man and don't ever use your real name. You would not want anyone to know that it was you who made such an idiotic statement!

  • 10W40
    July 01, 2010 - 20:02

    Yes Notta, we depend significantly on oil revenues, and we can be thankfull for that.

    The fishery is going to require drastic changes if it is going to be a viable industry and year round employer. The paper industry is whittling away all over North America, not just in this province.

    On the other hand, mining is one of the bright spots. Tourism seems to be growing, albeit slowly.

    We cannot expect Government to create jobs, but merely create an environment for those best suited to do so. High taxes are the biggest dis-incentive to future prosperity.

    I now wait with baited breath for WMJ, E.H. and their like minded minnions to spew their partisan Liberal venom.

  • Bob
    July 01, 2010 - 19:59

    Yes!!... Great points from Notta chance & Another act of grief!! Wake up Danny boy, lets get out of the oil business and give up billions and billions of dollars. Shut her down because it's a non-renewable resource, we should invest in something else. It blows my mind the amount of common sense some people have!!

  • Manny
    July 01, 2010 - 19:59

    Just be careful of Harper. He may want to steal somemore from NL. Way to go NL.To the haters and the pessimists...get a life.

  • Jim
    July 01, 2010 - 19:53

    It is a great idea to used oil wealth to build and diversify the province. With pressure from the people, I am sure that this is something future govenrments will do. Finally, it is nice to see that we are no longer giving away the house.
    Now, on to the lower Churhill...

  • Michael
    July 01, 2010 - 19:49

    Great news! Hibernia South will produce more oil, but it might also lead to new discoveries in the process.

    I say let's get the oil out of the ground and hopefully, the gas as well. This resource will provide revenues for the government to pay for health care, education, infrastructure improvements, and hopefully lower taxes. Some people complain about fossil fuels and say, Go Green, but that is unrealistic!! The problem with green energy is that it doesn't supply any profits for the government with the exception of Hydro. Green Energy is useless when it comes to creating revenues for the government. Useless!! Green energy(solar, wind) creates no wealth for the government which is a fundamental setback for Green Energy.
    Anyway, if Hibernia South is successful, then you will see other extensions come on line at Hibernia. I am a little optimistic, but Hibernia and Hibernia South and all of its reservoirs will eventually produce around 3 billion barrels of oil or more from this world class field. That is not even including the untold riches of natural gas and natural gas liquids that will start-up around 2020!



    As for oil money estimates, I say don't put specific figures on it!! Predict low and enjoy the windfalls. That's all you can do! Don't start estimating oil will be high all the time like the William's government did the last couple of years. Estimating high oil prices will only put you in the red, so if I have any advice for the William's government, is that to think reasonably about oil prices and don't over shoot the price.

    Hibernia and Hibernia South will be a boon for Newfoundland for the next couple of decades. Oil isn't going anywhere for awhile. New technology is not good enough yet to replace fossil fuels. Remember, petroleum products are much more than the oil you put in your car or oil tank.

    Hibernia and Hibernia South will be cash cows for Newfoundland for the next 20 years. And that is a good thing!

  • Jerome
    July 01, 2010 - 19:49

    Every time something good is announced all people seem to do is criticize before knowing what they are talking about.
    Like the fibre optic deal maybe?

  • 10W40
    July 01, 2010 - 19:47

    Y'all should check out 'Sir Robert Bond (toilet) Papers', the gang who hang around there are your typical liberal shills who see nothing good happening in this province....unless of course a liberal has their fingerprints on it, am I right Sounding Off from NL and WJM?

    Interesting it is that 'Sounding Off from NL ' has the same diction as the head honcho at Bond Papers, interesting indeed.

  • W
    July 01, 2010 - 19:47

    10W40, I can only dream of having minions.

  • W
    July 01, 2010 - 19:45

    Jim from NL writes: It is a great idea to used oil wealth to build and diversify the province.

    Perhaps it is, Jim.

    Perhaps it is.

    There's no way of knowing though, until that actually happens. And it certainly isn't happening right now.

  • Another Act of
    July 01, 2010 - 19:44

    Wonder how we will all feel when the oil industry goes the same way as the fishery?

    None renewable resources end people. Wake up.