As I also believe strongly in equity positions on major resource developments - this 4.9% is something I support fully. That is exactly what Norway has done to make Norsk Hydro what it is today.
The equity position is great. 4.9%
The super royalty is great. 6.5%
The stated intent on local engineering - design - and construction work is great.
The Research and Development commitment is average.
$120 million over the life of the project.
The Education commitment is poor.
$1 million pre-sanction to College of North Atlantic and Memorial University of Newfoundland to enhance skills training.
On the choice of platform - Floating Production, Storage and Offloading (FPSO) - or Gravity Based Structure (GBS) - myself and the Premier may disagree but both would have exceptional benefits for the province - if the legal agreement delivers the objectives of the MOU.
Here's the difference for me:
The FPSO can be costed over more that one project and is significantly cheaper. The GBS is one project - one unit and currently is a permanent structure in the water.
This means cost recovery or time to royalties may be increased with the GBS. On the Premier's side of this however is the GBS is more labour intensive especially for building and construction trades. So one might say what we lose on the cost recovery/royalties we make up for through increased employment and perhaps materials supply.
I would and have argued that the FPSO technology is an area where facilities such as those found in Marystown benefit greatly from gaining expertise in building and maintaining them - in a fashion that additional work from FPSO's not involved in our oil patch would be achieved. In other words an industry developed on but not dependent on our resources.
Having said that it is believed that GBS is better for heavy oil projects.
Further the GBS is now being looked at for LNG applications. Perhaps we can develop an industry based on these structures.
Considering the engineering expertise employed by government and the oil consortium - I yield - to that decision.
All in all this is an advanced MOU which satisfies the Province's benefits list for the Hebron development.
Danny Williams was right to hold off until equity - super royalty - and employment/construction/engineering targets were achieved.
This MOU is a superior and an advanced position for a province in deals with oil companies/consortiums.
I do not believe the oil consortium gained anything tremendous in this MOU. I do believe the Province gained substantially in this particular project.
I do believe the additional benefits to some or all of the consortium partners will be found outside this deal in future ventures. We will get into that next week.
Now it's back to the Lower Churchill.
22 comments:
I truely think that the only person that is Un-happy with this out-come Sue,is "EDDY" Hollett.Seems to me that "EDDY" has a real "POTTY MOUTH" over at another blog.But ,thats another story.
Anyhow,I must say Sue,given my stance towards canada,I still do wonder what this is going to mean for the province and more especially for Labrador.Now that it seems we may have the money to develop all this clean electric energy,what about the people in the Big-Land and what will they get from this deal.Hebron is only going to last us for a specific amount of time.I would love to see all this money put into development for Labrador.I still believe that Labrador is our future,and our brothers in the Big Land have gone with-out for far to long.
What about all those off-shore wind farms that the Governement was talking about.Renewable assets are what we need for the Future.
You obviously missed two rather important pieces of information:
1. The 6.5% is not what you think it is. Go look at the generic regime and realize the 6.5% comes AFTER simple payout and after other allowances and terms are met. The odds of collecting are low and the money won't cut in until sometime in the 2020s.
2. Chevron studied at least four configurations for production platforms. In every example using an FPSO, the FPSO sank when loaded.
GBS is the only cost-effective means of developing the heavy sour field.
Again, I know you won't let this through your censorship department because it would demonstrate your lack of information.
Ed - you were wrong - Williams did get terms of negotiation you thought impossible.
It was worth the 16 - 17 - 18 months wait.
I do know what the 6.5% means and am familiar with the royalty regime.
Nothing I stated would show otherwise.
The fact(if so) the money would not be seen until the 2020's does not trouble me - in fact it pleases me to know that the next generation will benefit.
That's the difference between you and I - that's where we parted ways - the privatization of Newfoundland and Labrador Hydro for a quick fix on deficit and debt - versus looking into the future for our children.
As for the engineering and the choice of platform - please read my comments again - as I was clear that I side with the expertise in engineering.
The energy and resource policies you articulate are nothing more than a continuation of past giveaways.
Let's see who follows you into that failed abyss.
The reason for limiting your comments are plenty - but primarily - it is because you provide nothing more than an attempt to criticize me for any reason you can dream up. The 300 or so comments and emails from you would be in some circles thought to be net-stalking.
Clyde is no longer the Premier - the failed energy and resource policies of past Liberal and Tory governments are obvious - that's not to mention the successful law suits against the province during Clyde's term - the failed privatization attempt - and his failure to move the province forward.
Your pontification on energy policy and your advice on same - should not be followed if we are to move upward.
By the way why did you wait until Linda took over from Randy to call open-line?
You and your hatred will not prevent me from speaking - do you understand that?
Your petty insults and your incessant attacks on anything and everything I say will not prevent me from speaking - do you understand that?
You and your ilk tried but failed to shut me up during the hydro privatization and all the sordid details of when Ed Roberts went into Cabinet prior to being elected and then went on to run in the district of Naskopi - do you understand that?
Yes Ed's - I will not forget - and the strength gained during that period of time - will allow me to carry on - do you understand that?
Chuck Furey - Doug House - Clyde Wells et al - no I do not forget.
Understand this - the bully you claim Danny is - pales in comparison to the back-door - shadowed bullying you engage in - do you understand that.
I love Newfoundland and Labrador and love our people. My purpose is only to see our people and country (Newfoundland and Labrador) prosper.
Now the censor button is back on - I'm sure you will understand that?
This amount of time wasted on you is already too much - and so I continue on with issues that are much more important to everybody outside the world of ED.
Sue - Nobody doubts that you have your province Newfoundland and Labrador and its people, first and foremost on your mind. You have demonstrated that love quite profoundly over the past 15 years ever since you took on the fight against the privatization of hydro.
It is not hard to differentiate who amongst the blogging community or the callers to the Open Line Shows are looking after the welfare of the province and its people. You can tell the ones who are afflicted with the "me syndrome" , they are the ones who always side with Big Oil's point of view or they prefer to see the Lower Churchill Hydroelectricty enrgy exported out of the province, in other words they never want what is best for Newfoundland and Labrador, they want what is best for themselves. They rather act as lobbyists for whoever is vying for our resources. I can only assume these people have interests of their own which are adverse to the province's interests.
I still believe that Labrador is our future,and our brothers in the Big Land have gone with-out for far to long.
If Labrador is "our" future, then who or what is Labrador's future?
Small minds Sue my Dear!!!!!
Here ,Here!!!
Well said Sue. Bravo!
It's people like Mr. Hobbitt, whose distaste of anything remotely positive from the Williams government, distorts his views. He writes with such bitterness that you almost feel sorry for the guy.
What else would one expect from a person who thinks that the sun shines out of Clyde Wells arse.
Well said Sue. Bravo!
It people like Mr. Hobbitt who think anything positive the present adminstration does is wrong. They go out of their way to make the government look bad but, by doing so, make themselves look desperate and pathetic.
What would you expect from someone who thinks the sun shines out of Clyde Wells arse?
His ramblings and attempts to justify his remarks almost make one feel sorry for the boy.
Very well said Sue. I've recently had to setup a reveiw process for comments on my blog as well for both sides of the arguements.
There are those who, Like Ed, seem to think that anything that isn't stamped with a big red L is useless and that their way is the only way. I don't mind that so much as the fact that some of them try to bully other contributors and belittle them into silence.
I'm sure you won't let that happen any more than I will. Keep up the great job on getting your points of view out.
As the old saying goes, "I may not agree with what you say but I'll defend to the death your right to say it."
(Good article as well by the way)
Indeed Ed Hollett is a very sad and hateful little man, and one with delusions of grandeur (he was really just a valet for Wells). But his criticisms of the Hebron deal have to be heard. Perhaps he is mistaken, but an arrangment of this magnitude should be subject to as much scruntiny as possible. There's more danger in not asking tough questions.
Oh the questions must be asked - and I will be front row doing the asking...
Now we must deal with our media - or most of them.
Very good article Sue, well said and to the point.
I've done my share of name calling when it comes to "Crazy Eddy". I understand he's being paid with liberal $'s and is probably a large L liberal to the bone. But reading his comments lately make me feel more sorry for him than anything else. We finally get a great deal and he can't help but dump all over it. I realise that not everyone is Danny fan, which is fine, but you have to give the man his due. Ed H. is just showing how extremely hateful and bitter he can be.
Well said sue. I've heard it before that the biggest battle anyone in this province would have with talks of NL empowerment or for that matter any movement that would see a sidlining of the mainstream parties, is the local press.
Starrigan,.........I couldnt agree with you anymore then that Brother.How horrible this must be for "EDDY" and the Liberial Party of Newfoundland.
With the Histroty that the Province has with give aways and the feds stealing what they could.Having Premeir Williams get this deal and look to the future to such other deals as the lower ChurchHill,has spelt the death of Liberlisaim in Newfoundland and Labrador.
Like Alberta,I truely think that its going to be a long cold road for Liberials in thease Provinces .
Poor "EDDY"
Naw ,ya wanna know something ,I really dont pity the guy Sue.The taste of what Martin did too Williams is still in my mouth,let alone what Harper has done.Screw the bastards,I still say the time has come to get the hell out of this shit-hole of a country ,lol.Poor "US"
Sad that this deal is timed to overshadow the loss of FPI. But politic is politics! In the long run, the fishery could have been our best resource, but we never could see the woods for the trees.
That's a good point Selena. The fisheries seems to have been pushed totally out of the picture. I can't help but wonder what Danny has in mind for it's future. Maybe he's going for the cash that he knows he can get and then put $'s into fisheries. Or maybe he's letting it slide to the point where he can convince Ottawa to let us take back ownership and then restructure the way we want. I have no idea what's bouncing around in his noggin but one thing is for sure, he's not doing anything of any use right now.
We might not be able to see the woods for the trees Selena and we may have made a lot of mistakes with the fisheries but since Ottawa has set the ground rules for that resource since 49, even it we saw the flies on the limbs of the trees in the forest it wouldn't make a whole lot of difference.
Sue, pardon me as a newcomer to your site but I've noticed that there are a handful of outspoken NLers like yourself, Myles at Web Talk and someone named BNB at the "Confederation Experiment" who seem to have only the best interest of the province at heart. Maybe you folks should get together with other strong voices and see how far you can move our home forward.
I see everyone getting more and more tired of the Liberals, PCs and NDP (Williams being the exception) maybe it's time real supporters and promoters of NL got together and made us truly, "Masters of our own house".
Touton I have a sneaky felling that Danny is a separatist at heart. In his speech, the night he was elected, he said that Newfoundland and Labradors biggest problem was Canada. Of course he's right. I have a feeling that once we are "masters of our own house" and our debt is paid down, we'll see a stronger movement towards separation. But that will all happen in good time. Right now we need to start fostering the idea in peoples heads. If people start thinking that it is inevitable that NL will some day separate, then at some point in the future it will be come a self fulfilling prophecy.
Danny is not interested in separation - it's too much effort. I will agree with the man when he fights for the province - justly - but - the fellow only became interested in it - when Tobin left the scene. Prior to that he seemed fairly content at what Liberal government's were doing.
He is not going to be around for the long haul - and when he leaves office - you figure he will still speak publicly?
That would be a switch - because as I said - he's a Johnny come lately - at this point.
I would agree Sue, I don't think Danny would be that man to take us out of confederation. I think he could point us in the right direction, maybe help create an environment conducive to separation. But the battle for an independent Newfoundland and Labrador would belong to someone else.
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