The company that supplied Nalcor and the government of Newfoundland and Labrador with projected oil costs has a new focus:
PIRA Energy Group held a seminar that I hope our province attended - before sanctioning the debt elephant and the Muskrat Falls inferior development plan.
It's time for our politicians to stop ignoring or downplaying the shale play in North America. The price of oil - which our reports on Muskrat rely so heavily on - may be taking an absolute turn downward. If this were to happen then our estimates are dead wrong - our export ability is dead, our price for domestic power would be too high, and the debt carried by taxpayers and monies paid by ratepayers would be unacceptable.
This type of error would compare to our failure to recognize the value of hydro - as oil prices soared. Now the opposite may happen - and we need to fully examine this possibility. Just as our mistake in the late 60's has netted Quebec a windfall - this project has the same potential to make multimillionaires of a few while hanging an albatross around the neck of Newfoundland and Labrador for an equivalent number of generations.
Please Read HERE
How about the government show us the latest PIRA report to them on projected oil prices. Where is the new report?
Also please advise if the formula used for projections to determine price of oil for our Hebron equity is the same as that being used for Muskrat.
We need to do more than be force fed fuzzy commercials, dazzled with hotel announcements, and reassured by MHA's who clearly do not have all the information. We need to stop this deal now - have the works go to the Public Utilities Board - which in turn would have complete authority to call any and all witnesses, check the primary data and estimates of Nalcor, and review the energy marketplace for the next 30 years.
We need to be cognizant of the fact that the project estimates have increased by over a billion dollars - which the government says is because of improved engineering and infrastructure plans.
Let's take them at their word. Why were the plans deficient to begin with if we have the BEST experts doing them? If the people, opposition, and media did not complain loudly about the first MHI, Navigant, and Joint Panel Review findings - would the government have proceeded with less than acceptable infrastructure?
If the increased costs are largely due to improper costing - then how do we expect to achieve a 10% maximum on over-runs?
There may very well be a project that works for the Lower Churchill - a domestic project/s that could see partnership between energy intense secondary processing industries and Newfoundland and Labrador Hydro - where transmission costs and energy loss could be minimized by using the power in Labrador. This of course does not include "johnny come lately" panic for Muskrat power when the Emera deal for Nova Scotia power may be in jeopardy and the potential export sales non-existent. We need to start from scratch and determine what is the best project/s for the Lower Churchill resource and proceed from there.
The television commercials and media buy to sell us something we have no say in - is throwing money for roads, hospitals, schools, and health down the drain.
If the government really wants the people to support the project - then send it to the experts we pay to determine the real costs, risks, and options for domestic supply IF and when we may need it.
This project has all the potential of being a second Upper Churchill nightmare - wherein WE make a mistake again.
We keep hearing that could not happen because of all the experts we have. Well how did it happen with the Upper Churchill?
How did the Newfoundland and Labrador Hydro experts get it wrong on privatization?
How did experts with Newfoundland and Labrador Hydro make so many errors in predicting power shortages over the past 30 years?
If and when the Lower Churchill is developed business will make money on the construction, engineering, and management of the project. We cannot just do a project to make business happy now by filling their coffers with contracts - that we have no ability to pay without extreme hardship to our people.
While we are at it - have a look at the mess in Nova Scotia regarding this deal and potential partnership and ask yourself is Emera in this? Are we guaranteed that Emera is in this?
Please read Here and look at the comments from Nova Scotians.
We are not yet in a position to sanction this deal and the people must step up and force the government to retreat from this fiasco.
Showing posts with label gas. Show all posts
Showing posts with label gas. Show all posts
Wednesday, October 31, 2012
Friday, October 26, 2012
Province's MHAs pale in Comparison to Business Leaders
As we review the performance of the people involved, impacted by and/or responsible for the proposed Muskrat Falls development - big business shines.
If we as people had MHA's who performed close to the level of big business in representing their shareholders interests - we would not be considering this Muskrat Falls fiasco.
If a business has any opportunity to get it on an 8 billion dollar spend - the decsion gate is clear.
Let's look at what it considers:
1. Can the business make any money on this venture?
2. How much money can the business make on this venture?
3. How many years can the business profit from working on or for this project?
4. What will the business cost be to deliver product, service, manufacture or consulting to the project?
5. What will be the increase in the value of a share and therefore the value of the business?
Let's look at what it does not consider:
1. Who is paying the bill? (other than if the party was not creditworthy)
2. How will it impact this community or that community?
3. Are the owners of the natural resource getting value from the proposed deal?
4. How will this proposed project affect the province's debt?
5. How many long-term jobs will be created for Newfoundlanders and Labradorians?
This is why I am not concerned or surprised that businesses around the province and the country are supporting the proposed development.
I am concerned about the mindset of our MHA's who are there to represent us - the people.
Let's look at what they should consider:
1. Who is paying the bill?
2. How will it impact the ratepayer, taxpayer, and shareholder of the resource?
3. How many long-term jobs will be created for billions of dollars?
4. How much value can we add to shareholder?
5. Is this development needed for domestic supply?
6. Is this the only alternative?
7. Can we sell this power competitively in the export market?
8. Will the shareholder subsidize cheap power for business, another province, or American Export?
9. How will the increased price of power to domestic consumers affect our seniors, low/middle income families, and local small business (recessionary impact)?
10. Have I achieved support from the people I represent as an MHA?
As for Nova Scotia - they are playing it coy:
1. The proposed project will go to the PUB there - while Newfoundland and Labrador MHA's are preventing the same process here.
2. They do not have to buy in before the project starts.
3. They can play one energy competitor off against another for the best price - thereby eliminating Muskrat supply or reducing the price wherein the people of Newfoundland and Labrador have to pay more for their power so Nova Scotians get cheaper power.
4. Currently the NDP government in Nova Scotia is in political trouble as it relates to Emera - where people are suffering the impacts of energy privatization that occurred at the same time as we prevented it.
5. Nova Scotia is presenting itself as the energy hub as it continues to attract industry away from Newfoundland and Labrador and to themselves.
As for the Mining exporters in Labrador - they are waiting like the wolf - we are the prey:
1. They are quickly becoming the raison du jour for the proposed development.
2. They have already threatened that without this type of infrastructure they may cancel or downsize development.
3. As other reasons for Muskrat development are destroyed - domestic island supply and export - their hands are wringing for cheaper subsidized power.
4. If they become the only reason for Muskrat - their demand for cheap prices will increase as other competitors (Hydro-Quebec) offer a cheaper price. All the while of course - Quebec gets secondary infrastructure to ship out our raw resources.
5. They have government's ear.
As for performance of CEO's - dead last in my opinion - Ed Martin
If we as people had MHA's who performed close to the level of big business in representing their shareholders interests - we would not be considering this Muskrat Falls fiasco.
If a business has any opportunity to get it on an 8 billion dollar spend - the decsion gate is clear.
Let's look at what it considers:
1. Can the business make any money on this venture?
2. How much money can the business make on this venture?
3. How many years can the business profit from working on or for this project?
4. What will the business cost be to deliver product, service, manufacture or consulting to the project?
5. What will be the increase in the value of a share and therefore the value of the business?
Let's look at what it does not consider:
1. Who is paying the bill? (other than if the party was not creditworthy)
2. How will it impact this community or that community?
3. Are the owners of the natural resource getting value from the proposed deal?
4. How will this proposed project affect the province's debt?
5. How many long-term jobs will be created for Newfoundlanders and Labradorians?
This is why I am not concerned or surprised that businesses around the province and the country are supporting the proposed development.
I am concerned about the mindset of our MHA's who are there to represent us - the people.
Let's look at what they should consider:
1. Who is paying the bill?
2. How will it impact the ratepayer, taxpayer, and shareholder of the resource?
3. How many long-term jobs will be created for billions of dollars?
4. How much value can we add to shareholder?
5. Is this development needed for domestic supply?
6. Is this the only alternative?
7. Can we sell this power competitively in the export market?
8. Will the shareholder subsidize cheap power for business, another province, or American Export?
9. How will the increased price of power to domestic consumers affect our seniors, low/middle income families, and local small business (recessionary impact)?
10. Have I achieved support from the people I represent as an MHA?
As for Nova Scotia - they are playing it coy:
1. The proposed project will go to the PUB there - while Newfoundland and Labrador MHA's are preventing the same process here.
2. They do not have to buy in before the project starts.
3. They can play one energy competitor off against another for the best price - thereby eliminating Muskrat supply or reducing the price wherein the people of Newfoundland and Labrador have to pay more for their power so Nova Scotians get cheaper power.
4. Currently the NDP government in Nova Scotia is in political trouble as it relates to Emera - where people are suffering the impacts of energy privatization that occurred at the same time as we prevented it.
5. Nova Scotia is presenting itself as the energy hub as it continues to attract industry away from Newfoundland and Labrador and to themselves.
As for the Mining exporters in Labrador - they are waiting like the wolf - we are the prey:
1. They are quickly becoming the raison du jour for the proposed development.
2. They have already threatened that without this type of infrastructure they may cancel or downsize development.
3. As other reasons for Muskrat development are destroyed - domestic island supply and export - their hands are wringing for cheaper subsidized power.
4. If they become the only reason for Muskrat - their demand for cheap prices will increase as other competitors (Hydro-Quebec) offer a cheaper price. All the while of course - Quebec gets secondary infrastructure to ship out our raw resources.
5. They have government's ear.
As for performance of CEO's - dead last in my opinion - Ed Martin
Tuesday, June 21, 2011
Dunderdale says of critics on Muskrat Falls Deal "working hard to find the few flaws"
Premier Dunderdale is a political fraud. Very simple - as she opens her mouth and inserts two feet in.
The Premier says we - the critics of the Muskrat Falls deal - are "working to find the few flaws". This while addressing the Oil Conference happening in St. John's today.
Dunderdale is ignorant and that is extremely dangerous for Newfoundland and Labrador.
Inheriting the title Premier - gives her a right to diminish the FREE public service many of us have been involved in for over two decades.
While trying to insult and degrade the people she serves and who pay her salary - she ironically provides a compliment.
The Premier must be in pretty bad shape when she resorts to "insulting" rather that "debating" to silence her critics.
Dunderdale should learn this lesson. As Premier she should encourage, welcome, and thank those citizens that are "working" to find flaws in the Muskrat Falls deal. That means we give a damn about our place and give a damn about future generations.
Kathy Dunderdale as Premier - the most powerful position in the Province stands and speaks to corporate executives - some of which are the most powerful people in business and takes potshots at people who are not present for the address and receives applause from those wanting to rid the people of their resources for maximum gain.
A corporation can be forgiven for the cheap and cowardice behavior - they represent their shareholders and have a fiduciary duty to make them money. They in no way are responsible for the betterment of our people and our communities. That's your job Premier - and you'll have a hard time of it if you continue to attack your own people in favour of large offshore corporations, other provinces, and Stephen Harper.
Dunderdale is setting a very poor example for your children and mine. By using an imbalance of power to assert her position - the Premier is actually a bully.
Sadly the Premier is actually targeting the people she has sworn to represent.
Without her power - she might actually have to appear in front of ordinary Newfoundlanders and Labradorians like you and me. Then she might actually have to debate with the owners of the resources - she is so flippantly giving away. On equal terms our Premier would be lost - and I assure you the applause she is receiving from the corporate elite might be replaced with disdain and disgust from the people who elected her party to govern.
If stripped of her position tomorrow - would she so freely attack others behind their backs? If stripped of her power tomorrow - would she so freely try to rid others of their gainful employment? If stripped of her power tomorrow - who would she be? Dunderdale might just find out in October. As for those Cabinet Ministers and backbenchers who are silenced either by ignorance or hopes of personal gain (cabinet post) - you should really sit back and reflect. Is this really worth it? What will your grandchildren think?
As for finding flaws - let's hope we do - those few flaws in the Upper Churchill have certainly been costly.
Ask Nova Scotia Premier Darrell Dexter if you have permission to talk to your people.
The Premier says we - the critics of the Muskrat Falls deal - are "working to find the few flaws". This while addressing the Oil Conference happening in St. John's today.
Dunderdale is ignorant and that is extremely dangerous for Newfoundland and Labrador.
Inheriting the title Premier - gives her a right to diminish the FREE public service many of us have been involved in for over two decades.
While trying to insult and degrade the people she serves and who pay her salary - she ironically provides a compliment.
The Premier must be in pretty bad shape when she resorts to "insulting" rather that "debating" to silence her critics.
Dunderdale should learn this lesson. As Premier she should encourage, welcome, and thank those citizens that are "working" to find flaws in the Muskrat Falls deal. That means we give a damn about our place and give a damn about future generations.
Kathy Dunderdale as Premier - the most powerful position in the Province stands and speaks to corporate executives - some of which are the most powerful people in business and takes potshots at people who are not present for the address and receives applause from those wanting to rid the people of their resources for maximum gain.
A corporation can be forgiven for the cheap and cowardice behavior - they represent their shareholders and have a fiduciary duty to make them money. They in no way are responsible for the betterment of our people and our communities. That's your job Premier - and you'll have a hard time of it if you continue to attack your own people in favour of large offshore corporations, other provinces, and Stephen Harper.
Dunderdale is setting a very poor example for your children and mine. By using an imbalance of power to assert her position - the Premier is actually a bully.
Sadly the Premier is actually targeting the people she has sworn to represent.
Without her power - she might actually have to appear in front of ordinary Newfoundlanders and Labradorians like you and me. Then she might actually have to debate with the owners of the resources - she is so flippantly giving away. On equal terms our Premier would be lost - and I assure you the applause she is receiving from the corporate elite might be replaced with disdain and disgust from the people who elected her party to govern.
If stripped of her position tomorrow - would she so freely attack others behind their backs? If stripped of her power tomorrow - would she so freely try to rid others of their gainful employment? If stripped of her power tomorrow - who would she be? Dunderdale might just find out in October. As for those Cabinet Ministers and backbenchers who are silenced either by ignorance or hopes of personal gain (cabinet post) - you should really sit back and reflect. Is this really worth it? What will your grandchildren think?
As for finding flaws - let's hope we do - those few flaws in the Upper Churchill have certainly been costly.
Ask Nova Scotia Premier Darrell Dexter if you have permission to talk to your people.
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