In the News
In this section, we present summaries of events or issues that should be of interest for the future as well as at the time of writing.
Follow the links and please note that Adobe Acrobat is required to view the documents.
1. Conflict over the Hebron Development (2006), Leah Fusco
2. Appointment of the C-NLOPB (2006), Leah Fusco
3. Bad Luck Recently for Petro-Canada (2006), Leah Fusco
4. Peak Oil Theory (2006) Leah Fusco
5. Oil Sands (2006) Leah Fusco
Links to sources for current events
We regret that we cannot maintain this list beyond 9 September 2007.
Week of September 9
1. Energy plan announced
The provincial government’s recently released energy plan has the province taking a 10% stake in any future offshore oil and gas projects.
2. Province to get 5% of White Rose expansion
The government has reached a tentative agreement to receive a 5% stake in the newly approved White Rose expansion project. The agreement includes the province paying about $44 million for an equity stake, as well as a super royalty system that will kick in once the development costs of the field are recovered.
3. Hebron development may bring workers back to Newfoundland
There is hope that the work created by the development of the Hebron oil field will draw many workers, who have had to leave to find work in Alberta, back to Newfoundland.
Week of September 2
1. Government approves White Rose Expansion
Husky energy has been given approval to produce 24 million barrels of oil from the south White Rose oil field. The CNLOPB already approved the expansion. Further expansion is likely, such as North Amethyst and West White Rose.
Week of August 26th
1. MP says Liberal environmental plan could stall Hebron
Tory MP, Fabian Manning, said that the Liberal supported Bill C-22, which calls for a large reduction in CO2 emissions in four months, could slow if not stop the development of the Hebron oil field development.
2. Liberal leader says he would honour Atlantic Accord
Federal Liberal Leader Stéphane Dion has stated that the Liberals would honour the deals made with Nova Scotia and Newfoundland and Labrador over offshore oil revenues.
Week of August 19th
1. Agreement finally reached to develop Hebron
The Newfoundland and Labrador government and the consortium of oil companies led by Chevron have reached an agreement to develop the Hebron oil field. The project is expected to generate $16 billion over its life, with the province getting $7 billion. The province will pay $110 million upfront for a 4.9% equity stake in the project. The agreement also includes a tier three, or super royalty, in which the province will gain more royalties when oil prices are higher. Construction is expected to begin as early as 2010.
2. Business community relieved about Hebron
The business community in St. John’s has been highly critical of the government’s stance over the Hebron development since talks broke down last year and are pleased that the development is finally moving forward. Newfoundlanders in Alberta are also excited because it means that many of them will be able to return home to work on the project.
3. Opposition wants to see deal
Opposition leaders are concerned that Danny Williams will not bring the deal reached with the oil companies over the Hebron development to the legislature for ratification. However, Williams states that the memorandum of understanding reached with the companies is confidential and cannot be made public.
4. Reactions to the Hebron deal announcement
Various people from around the community react to the offshore oil deal.
5. Hebron deal may mean Newfoundlanders can return home
The jobs provided by the Hebron oil field development may mean that some Newfoundlanders who have left the province to work in Alberta will have the opportunity to come back home.
6. Teacher shortage may pose problem for Hebron
The Hebron oil field development will create a number of jobs in skilled trades. However, there is already a shortage of teachers to teach these trades at local schools. Salaries for these positions are higher out west and local schools cannot compete.
7. Williams still fighting for equalization
Despite the recent Hebron development deal, Newfoundland Premier Danny Williams is still going to fight the federal government to abide by the Atlantic Accord.
Week of August 12th
1. Williams says Hebron deal may be close
Premier Danny Williams says that the recently restarted negotiations with oil companies over the development of the Hebron oil field may lead to an agreement any day.
2. Businesses eager for Hebron Development
Businesses in St. John’s are eager to start benefitting from increased activity from the Hebron development. People in the business community see the development of Hebron as critical for keeping the momentum going for the offshore oil industry in this province.
3. Henry Goodrich will finally leave Newfoundland
The Henry Goodrich semi-submersible drill rig, which has been working in the Terra Nova oil field, will finally leave Newfoundland. The rig had been scheduled to leave in June, but stayed in the Terra Nova field working on well maintenance and upkeep. It has now arrived in Conception Bay where it will undergo repairs and equipment removal before it heads to its next destination in the Gulf of Mexico.
4. White Rose expansion plan goes to government
The White Rose Development Plan Amendment (DPA) has been given to the Department of Natural Resources by the CNLOPB to determine whether or not it will be approved. The department has until early September to make its decision. The plan would be a $600 million dollar expansion of the current project in order to produce 25 million barrels of oil in the southern part of the field.
5. Hebron agreement could change future energy deals
Some predict that the expected Hebron oil field development agreement could alter the province’s future oil development agreements. If the province gets the equity stake that it is asking for in current negotiations, future oil and energy negotiations will likely be altered.
Week of August 5th
1. Hebron talks formally resume
Negotiations between the province and the oil companies over the development of the Hebron oil field have formally resumed. Premier Danny Williams left the premiers conference early in order to return to Newfoundland to participate in these talks. Negotiations between oil companies and the province stopped in the spring of 2006 and there have been rumors for several months that formal talks would begin shortly.
Week of July 29th
1. CNLOPB Defends Itself
The CNLOPB has issued a statement defending itself against accusations that were printed in an article entitled "Criminal Inaction" by the Hon John C. Crosbie. The article accuses the CNLOPB of not having adequate safety measures, including proper evacuation plans for offshore structures.
2. Provincial Energy Plan to be Released Soon
The Newfoundland and Labrador Energy Plan, which has been in the works since 2005, will be released before the fall’s provincial elections, and possibly before the end of August.
Week of July 22
1. White Rose royalties increase
Royalty payments from the White Rose oil field have increased to 5% recently. About a month ago the company reached what is called simple payout, which is the point at which the company has recovered its costs of development. Prior to this point the company was only paying the province 1% in royalties.
2. Flaherty may be moved due to handling of Atlantic Accord
Prime Minister Stephen Harper is expected to shuffle his cabinet soon. There is talk that this could include finance minister Jim Flaherty, the minister responsible for the recent budget that caused so much controversy over equalization. It is thought that replacing Flaherty could make it easier to resolve the equalization issue. However, Flaherty is otherwise thought to be a good minister so Harper may choose to keep him in place.
3. White Rose rig being repaired
The semi-submersible drill rig being used to drill the White Rose oil field is currently in Conception Bay undergoing maintenance.
4. White Rose back online
The Sea Rose FPSO used in the White Rose oil field is back online after a 16 day maintenance shutdown.
5. Williams accuses Harper again
Danny Williams has again accused Prime Minister Stephen Harper of breaking a promise to the province of Newfoundland and Labrador over equalization.
6. White Rose to increase production
Husky received government approval to increase production at the White Rose oil field from 135,000 barrels per day to 140, 000 barrels per day. Factoring in the downtime associated with the recent scheduled maintenance, White Rose is expected to produce an average of between 120, 000 and 125,000 barrels of oil per day for the year.
Week of July 15th
1. Scotiabank reports on Atlantic Canada energy
A recent Scotiabank report stated that production and investments in Atlantic Canada are ongoing although there will be fewer construction projects in 2007-2008. Newfoundland and Labrador is expected to have the highest growth rate of any province in 2007, but this will slow for 2008. However, exploration in the province is still vibrant.
2. New president and CEO of NOIA appointed
The Newfoundland Ocean Industries Association has appointed Robert (Bob) Cadigan as the new president and CEO. Cadigan is taking over for Ted Howell and is an experienced executive.
3. Chevron vice president visits St. John’s
Chevron vice president Sam Bates recently visited St. John’s. Premier Danny Williams has stated that the company and the province are talking informally only at this point and that no formal negotiations have started. However, Williams is hopeful that formal talks will begin by the end of the summer if not sooner.
Week of July 8th
1. Newfoundland oil production peaks
Production at the current three offshore oil fields in Newfoundland is scheduled to peak this year, then gradually decrease until 2010-2011 when it will dramatically decline. However, these figures do not include the likely development of satellite fields at current developments or the development of the Hebron oil field.
2. White Rose shut down
The Sea Rose FPSO shut down on July 3rd for scheduled maintenance and routine checks.
Week of July 1
1. MUN to build fastest computer to process offshore seismic data
The Husky Energy chair and a group of computer and electrical engineering students are designing the fastest computer in the world to process offshore exploration seismic data. It is estimated that it will cost $6 million to create this computer, $3 million of which will come from the Atlantic Canada Opportunities Agency.
2. Henry Goodrich still in Newfoundland
The Henry Goodrich semi-submersible drill rig that has been working in the Terra Nova oil field for seven years is getting ready to leave Newfoundland to go to its next job. Although it had been planned that the rig would be in Conception Bay by this point undergoing a refit, it is still working on one of Terra Nova’s production wells.
Week of June 24th
1. Eastern Canada Premiers and New England governors meet
The Premiers of Eastern Canada and the New England governors recently met in Prince Edward Island. The Premiers of Newfoundland and Labrador and Nova Scotia discussed the Atlantic Accord, hoping to create a better understanding of their recent actions with the federal government.
2. CNLOPB annual report released
The CNLOPB has released its annual report. This report explains the Board’s activities over the past year as well as the state of the offshore oil industry and its contribution to the provincial economy.
3. Orphan Basin partners plan second survey
Partners Chevron Canada, ExxonMobil, Imperial Oil, and Shell Canada, are planning to conduct a second electromagnetic survey of the Orphan Basin, which is expected to be completed in August. This follows a survey that was done of the area last year.
4. Historic explanation of Newfoundland’s stance on Atlantic Accord
5. Poll shows Harper has little support on equalization policy
A recent poll conducted by Decima Research suggests that 69% of people in the Atlantic region do not support Prime Minister Stephen Harper’s actions on equalization. Only 6% of people stated that their views were closer to Harper’s. On a national level the poll also showed that there is little support for Harper’s position. Nationally, 27% of respondents sided with Harper while 32% sided with Newfoundland and Labrador and Nova Scotia Premiers.
Week of June 17th
1. St. John’s economy growing
A new report states that the economy of St. John’s is growing and will continue to grow for several years. The report stated that the St. John’s economy is expected to grow 9.4% in 2007. While much of this can be attributed to the offshore oil industry, the economy would still grow 3.4% even without it.
2. Hebron talks resume
Premier Danny Williams announced at the recent NOIA conference that talks have resumed with oil companies about the development of the Hebron oil field. Williams says the two sides are exchanging information, including concerns over costs. These are not formal negotiations, but formal negotiations could start within a month.
3. Petro Canada is waiting on new energy plan
Petro-Canada, one of the four partners in the Hebron project, is waiting to hear what will be included in the Newfoundland government’s upcoming energy plan. This plan is expected to include at least a 5% equity stake for the province in all upcoming offshore projects.
4. Law expert says lawsuit against government is a long shot
A law expert says that while suing the federal government over equalization may bring the provinces political points, it is likely that the case would just be thrown out by the courts.
5. Newfoundland may soon not need equalization
Federal Finance Minister Jim Flaherty has stated that Newfoundland and Labrador may not need equalization payments in as few as two years.
6. New developments may move forward
New developments in Newfoundland’s offshore oil industry, including the White Rose extension fields, Hibernia South, and the Hebron field, may move forward soon.
7. White Rose extension plan
Husky has said that its planned White Rose extension would extend the field life 4 years, to 2020, and will provide nine million person hours of work.
8. Second Newfoundland oil refinery
Brian Dalton, director of Newfoundland and Labrador Refining Corporation, stated that he is optimistic that his company’s plan to build a second refinery in Newfoundland will move forward. Dalton stated that they would like to start clearing land early next year and to have production start within four years.
9. Williams speaks at NOIA conference
Premier Danny Williams spoke at the recent NOIA conference. His comments this year were much more positive than last year’s, which were made shortly after the Hebron oil field negotiations failed. Williams’ speech this year was full of hope for the future of Newfoundland’s offshore oil industry.
10. Federal minister planned to attack Williams
Natural Resources Minister Gary Lunn had planned to deliver a harsh speech at the recent NOIA conference. However, he was not able to come to Newfoundland due to weather conditions. Lunn had planned to attack Danny Williams’ approach to offshore oil development, saying that it held up the development of the industry and hurt the economy.
11. Senate passes budget
The Senate passed the controversial budget that was recently passed by the House. This budget is controversial specifically for Newfoundland and Labrador, Nova Scotia, and Saskatchewan because it changes the equalization formula, something these provinces say violates the Atlantic Accord.
Week of June 10th
1. More oil at White Rose
Husky has begun the process that will draw oil from the three White Rose satellite fields. Oil from these fields is expected before 2010.
2. Liberals would have handled oil development differently
Liberal Party leader Gerry Reid has stated that his party would not have walked away from the negotiations with oil companies over the development of the Hebron oil field.
3. Harper suggests court to solve equalization problem
Prime Minister Stephen Harper has suggested that Nova Scotia take him to court to settle whether a contract about equalization was broken. Harper does not believe that any laws were broken and therefore thinks that court is the only way to truly settle the problem.
4. New budget passes
Stephen Harper’s contentious budget, which made changes to the equalization program, passed the House of Commons. Newfoundland and Labrador and Nova Scotia claim this budget undermines the Atlantic Accords and will cause each province to lose a great deal of money.
5. Senate expected to challenge Harper’s budget
Although the House of Commons passed Harper’s budget, which was controversial due to its content concerning equalization, the Senate, which usually would not interfere in such an issue passed by the House, is expected to challenge it.
6. Saskatchewan will sue over equalization
Saskatchewan will file a lawsuit against the federal government over equalization payments. The lawsuit will be based on parts of the constitution requiring that equalization payments be fair and equitable. Newfoundland Premier, Danny Williams, has said he may consider joining this lawsuit.
7. APEC study says all of Atlantic Canada to lose under new equalization program
A new Atlantic Provinces Economic Council report states that not only will Newfoundland and Labrador and Nova Scotia lose money with the new equalization formula, but all Atlantic provinces could lose as well.
8. Williams wants more than 5% equity stake
Danny Williams has announced that he wants an equity stake of more than 5% in any upcoming oil developments in the province. Williams had been seeking 4.9% of the Hebron field when talks were going on between the province and the oil companies. An exact amount has not been officially stated.
9. No compromise between Harper and NS Premier
Stephen Harper and Nova Scotia Premier Rodney MacDonald met shortly before the House of Commons was set to vote on Harper’s controversial budget. The two did not reach a compromise and the budget was expected to pass.
10. Henry Goodrich will leave Canada shortlyThe Henry Goodrich semi-submersible drill rig has nearly completed its job at the Terra Nova oil field where it has been drilling 27 wells over the past six years. After completing this job it will move to the Gulf of Mexico.
11. Wade Locke wants oil development to move forward
Memorial University economist, Wade Locke, thinks the provincial government needs to take further action so that development of the oil industry can move forward. Further development would include the White Rose extension and the Hibernia South field.
Week of June 3rd
1. Newfoundland government will demand 5% of future offshore projectsThe Newfoundland government has announced that it will demand at least a 5% equity stake in future offshore oil projects taking place in the province. They plan to invest the money raised from this into a new company, resulting from splitting Newfoundland and Labrador Hydro into two companies. The first company would be the traditional utility that provides energy, and the second would be an energy company that would invest in offshore oil and gas, wind, and hydro development.
2. Williams versus the oil companies
Outlines the issues between Danny Williams and the oil companies in terms of developing the Hebron oil field.
Week of May 13th
1. Terra Nova will shut down
Petro Canada is planning to shut down the Terra Nova FPSO for ten days on May 30th in order to conduct maintenance. This shutdown is not expected to alter the company’s production forecast.
2. Conference participants concerned about oil development
Some participants at a Harris Centre conference on May 16th voiced concerns about the recent slowdown in offshore oil development in the province. Last year, the talks to develop the Hebron oil field failed, and more recently the plans to develop the Hibernia South field were postponed. These incidents have concerned some people who would like the offshore industry to be developed more quickly and consistently.
3. St. John’s Mayor in trouble for comments about CNLOPB
Max Ruelokke, CNLOPB chair and chief executive officer, stated that board member and St. John’s Mayor, Andy Wells, made inappropriate comments about the CNLOP, which were published in a recent edition of Oilweek. Wells stated that he did not think the board handled the Hibernia South application well and that the board was ‘incompetent.’ It is unclear yet whether disciplinary action will be taken against Wells.
4. Offshore land sale
This year five offshore parcels are being offered by the CNLOPB in its land sale. The sale closes on November 30th and there is a minimum bid of $1 million dollars for each parcel. The winner of each parcel gains a 9 year exploration license for the area. In order to keep the land, companies must drill a well within the first six years.
Week of May 6th
1. Terra Nova shutdown
The Terra Nova FPSO is scheduled to shut down on May 30th for maintenance and safety checks. This maintenance is expected to take ten days to complete.
2. Husky investing in research and development
Husky Energy, the operator of the White Rose oil field, spent $12 million on research and development during the development phase of the White Rose project and expects that it will spend much more during the production phase. Husky is paying the research and development levy created by the CNLOPB. The operators of the Hibernia and Terra Nova oil fields have gone to court over the creation of this levy, claiming that it is unfair to change the rules after development plans were approved.
3. Newfoundland will demand greater equity stake in offshore oil projects
The Newfoundland government is planning to release an energy plan prior to the October 9th provincial elections. Danny Williams has stated that this plan will include the requirement that the province receive an equity stake in any future offshore development.
4. Western Newfoundland has oil potential
Vulcan minerals has stated that a resource assessment of four licenses in the Gulf of St. Lawrence, off the west coast of Newfoundland, have "world-class petroleum potential." This news caused Vulcan mineral stock to increase 64.3%.
5. Newfoundlanders gather to support Williams on equalization
More than 1500 people gathered outside the Newfoundland and Labrador legislature on Friday, May 11th to show support for Danny Williams regarding his fight with the federal government over equalization.
Week of April 31, 2007
1. Danny Williams continues his attack on Harper
Danny Williams is urging voters to vote ABC anything but conservative, in the next election. This is in response to the Harper government's new equalization plan, something Williams claims breaks a promise previously made by Harper stating that offshore oil resources would be excluded from equalization calculations.
2. Talks restarting over Hebron oil field?
Danny Williams claims that the province is holding informal talks with oil companies about the Hebron project. This project was stalled indefinitely over a year ago as the government and the oil companies could not come up with a satisfactory agreement. Williams stated that he will maintain his insistence on 4.9% equity stake and a super royalty during times of high oil prices. Chevron's spokesperson, however has denied that any negotiations are taking place.
Week of April 22, 2007
1. Williams delivers nationalist throne speech
Danny Williams delivered his throne speech, which included a nationalist tone. Although he stated that his goal is Newfoundland self-reliance, he was adamant that this did not mean separatism. Rather, Williams wants Newfoundland to be part of Canada and stated that the province will not “be slapped repeatedly in the face by federal governments”. He also expressed his support for Newfoundland 'moral autonomy' from the federal government.
2. Harper comments on Newfoundland budget
After Stephen Harper commented on the newly released Newfoundland budget, Danny Williams responded stating that the Harper government could be given no credit for any part of the budget. Instead, he claimed that the surpluses could be attributed to offshore oil wealth and the Atlantic Accord deal that was negotiated with the previous Liberal government.
Week of April 15, 2007
1. Revised equalization numbers will not be tolerated
Newfoundland finance minister Tom Marshall stated that the new estimates revealing that the province will lose money under the new equalization formula proposed by the Harper government will not be tolerated. The new estimates were calculated by Wade Locke and show that the province will get $1 billion less than if the Harper government had stuck to its original promise not to include offshore oil revenues in the equalization calculation.
2. Williams wants finance minister to resign
Danny Williams has demanded that the federal finance minister resign because of the recent equalization re-calculations done by Wade Locke. The revised numbers show that the province will get $1 billion less than if the Harper government had maintained its original promise not to include offshore oil revenues in the equalization formula.
3. Federal fisheries minister lashes out at Williams
Federal fisheries minister Loyola Hearn blames Danny Williams' harsh negotiating style for the slowdown in the development of the Newfoundland offshore oil industry. Hearn and Williams have been verbally bickering as of late, as have Williams and others in the federal government, particularly Stephen Harper.
Week of April 8, 2007
1. Equalization history
Explains the history of the current equalization issue, including the campaign promise that Stephen Harper made, what Danny Williams is accusing him of, and how it is currently playing out.
2. Wade Locke re-calculates equalization
Wade Locke, the economist who recently announced that Newfoundland would gain 5.6 billion dollars if it opted into the new equalization plan at a certain point, has recalculated his figures after learning that one of his assumptions was faulty. He now claims that the new formula will give Newfoundland 1 billion dollars less than the status quo.
Week of April 1st
1. Husky to increase production
The government has given approval of Husky energy's plan, submitted last September, to increase production at White Rose from 36.5 to 50 million barrels per year.
2. Harper will run counter-ad in Newfoundland and Labrador
Prime Minister Stephen Harper will run his own ad in newspapers across Newfoundland and Labrador in response to the ads printed across Canada by Danny Williams. Williams's ads accused Harper of going back on his campaign promise about equalization. Harper will attempt to convince the public that Williams is incorrect in his accusation that promises were broken. Harper is getting criticized for these ads because he is using tax payer money to pay for them.
3. Newfoundland economist claims new deal could be better for province
Wade Locke, an expert on offshore oil revenues, claims that the province would collect billions of dollars more if it chose to adopt the Prime Minister's new equalization plan. If the province remained with the Atlantic Accord until 2020 it would receive 18.5 billion dollars in combined revenues. However, if the province stuck with the Atlantic Accord until 2009 and then opted into the new equalization plan, it would receive 24.1 billion dollars over the same period of time.
Week of March 25th
Newfoundland and Labrador Premier Danny Williams has taken out ads in newspapers across Canada in order to publicize his dissatisfaction with Prime Minister Stephen Harper's recent equalization announcement. Williams claims that Harper broke his promise not to include natural resource revenues in any new equalization plan. The Prime Minister, however, denies this.
2. NL Hydro looking to get into oil and gas
Newfoundland and Labrador Hydro, a crown corporation, is looking to hire a manager with a background in oil and gas in order to help the company increase its activity in oil and gas projects. The plan to increase oil and gas projects originated with the province's energy plan, which was part of the 2005 budget.
3. Husky to drill glory hole this summer
Husky Energy is planning to drill a glory hole in what is called North Amethyst, which is in the southwestern part of the White Rose oil field. It is estimated that the North Amethyst holds 70 million barrels of oil, which will be developed in about three years using the Sea Rose.
Week of March 18th
1. New equalization announcement upsets Danny Williams
Premier Danny Williams is upset at the announcement of a new equalization plan that gives provinces a number of choices with regard to equalization. Williams claims that as a result, the province could lose a great deal of money from the offshore oil industry. He has stated that he will take action by urging people to vote against the Torries in the next election.
2. Eirik Raude back in Orphan Basin
The Eirik Raude has returned to the Orphan Basin where it will resume drilling after spending several weeks at the Marystown shipyard. The semi-submersible rig was sent to the shipyard on March first in order to repair a damaged leg brace that caused mud to spill into the ocean.
3. Further Orphan Basin drilling delayed
Plans to drill two more wells in the Orphan Basin have been delayed until 2008-2009. This decision was partly due to the problems encountered by the Eirik Raude. This delay could lead to a loss in offshore oil jobs.
Week of March 11th
1. Eirik Raude on its way back to Orphan Basin
The Eirik Raude is currently on its way back to the Orhpan Basin. It has been at the Marystown shipyard undergoing repairs since March 1st. Damage to the leg brace caused the rig to spill mud.
2.CNLOPB meets with government
The CNLOPB has met with the department of natural resources, but no information about the topics of discussion have been released. The CNLOPB requested the meeting after the government denied an application to develop the South Hibernia oil field. The CNLOPB has stated that it thinks development should have been allowed to move forward.
Week of March 4th
1. Marine Atlantic appoints new board members
James Doody and John Henley have been named as new board members to Marine Atlantic. Marine Atlantic is a Crown corporation that runs the ferry service in the province. The purpose of the board is to oversee the corporation's management and to make sure that the it's activities are in line with government goals.
3. Newfoundland's investment climate worries some
The government has warned that it may veto a possible deal in which FPI sells its assets. Some worry that this act would harm how the province is viewed by investors, making Newfoundland's investment climate non-inviting. Approximately a year ago, the government and oil company negotiations over the development of the Hebron oil field were stopped, with oil companies claiming that they could not agree to the high demands of the government.
4. Companies will fight research and development regulations
The owners and operators of Hibernia and Terra Nova have filed an appeal to a decision to uphold the CNLOPB's 2005 regulation that requires oil companies to invest a certain percent of their yearly revenue to research and development. The companies claim that it was not fair to establish this regulation after the development plans for the projects were approved.
Week of February 25th
1. Eirik Raude fixed in Marystown
The Eirik Raude drill rig has been moved from the Orphan Basin to Marystown shipyard, where it will undergo repairs. The repairs are needed as a result of damage to the rig leg brace, which caused 80,000 litres of mud to spill. The repairs are expected to take approximately 3 weeks.
2. Danny Williams nice to Harper
In what seems like a complete turnaround in attitude, Danny Williams sent Stephen Harper a letter commending him on his first year in office. This contrasts the harsh attitude he has had recently toward the Prime Minister over equalization.
Week of February 18th
1. Newfoundland oil and gas week
2. Newfoundland economy will beat Alberta
February 18th-24th was the 5th oil and gas week in Newfoundland. This event was organized by the offshore oil industry, educational institutions and the government. This year's event highlighted the offshore oil research and development capabilities of Newfoundland.
The Conference Board of Canada predicts that Newfoundland will lead the country in economic growth this year. This growth is the result of nickel and offshore oil production. However, growth is expected to drop significantly next year as oil production declines.
3. CNLOPB and government to meet over Hibernia disagreement
Members of the CNLOPB and the Department of Natural Resources are planning to meet to discus their recent disagreement over developing the southern Hibernia field. The CNLOPB approved an application to develop the field, but the government denied it, stating that it needed further information.
4. White Rose extension application under review
The application submitted by Husky to develop 25 million barrels of oil beyond what they had originally planned is being reviewed by the CNLOPB. The application was submitted in September, 2006, after the Board determined that the change constituted a change to Husky's original development plan. The application for the change required public comments to be accepted. Two public comments were submitted.
Week of February 11th
1. Ocean Ranger sinking remembered 25 years later
The Ocean Ranger, a semi-submersible oil drilling platform, was remembered 25 years after its tragic sinking. In 1982, the platform was hit by a severe storm and all 84 crew members were killed. Because of this accident, new regulations were created, and better safety equipment and training are now required. However, some people still worry that there has not been enough done to prevent further accidents.
Week of February 4th
1. Hibernia maintenance shutdown will take place sooner than planned
The Hibernia offshore oil platform will shut down in February for maintenance rather than waiting until September, as had been planned. The shutdown will consist of routine maintenance and could take up to a month to perform. Although the shutdown could cause provincial revenues to be down $20 million, it will help to secure the situation in the future by making sure that the problems faced by Terra Nova do not become problems for Hibernia as well.
2. White Rose performs better than expected
Husky has announced that the White Rose oil field is doing better than they had expected. Part of this is due to the 6th production well that came online in late 2006. A 7th well is expected to begin producing in mid 2007.
3. Mud spill takes place during Orphan Basin drilling
A spill of nearly 80,000 litres of mud took place during drilling in the Orphan Basin on January 28th. Chevron and the CNLOPB are looking into the incident.
Week of January 28th1.
ExxonMobil's earnings increase
ExxonMobil announced that its 2006 earnings were 15% higher than they were in 2005, making 2006 another record year for the company.
2. CNLOPB says Hibernia Development Plan Amendment (DPA) should have passed
The CNLOPB has stated that it does not agree with the provincial government's recent decision to deny the recent Hibernia Development Plan Amendment. It thinks that the DPA could have passed and that any problems the government had with it could have been dealt with.
3. Hibernia oil field may become income trust
The federal government has received several offers to make the Hibernia oil field into an income trust.
Week of January 21st
1. Hibernia development application
The Hibernia Management and Development Co. will reapply to develop the South Hibernia oil field. Its original application was rejected because the government wanted more information, specifically about benefits to the province.
2. Newfoundland and Saskatchewan unite over equalization
Premiers of Newfoundland and Labrador and Saskatchewan have come together in their fight about equalization. Both want the Prime Minister to keep his promise that natural resources would not be included in a new equalization formula.
3. Terra Nova
Production at the Terra Nova FPSO reached peak rates in December, 2006. This was about a month after it came back online after many months off for both scheduled and unscheduled maintenance.
Week of January 14th
1. Hibernia problems
The recent problems at the Hibernia platform are expected to take about two months to repair. Although Hibernia does not contribute a lot to the province in terms of royalties, it will still affect provincial revenues.
2. Government says no to further Hibernia development
The government has denied Hibernia developers’ request to develop the Hibernia South oil field. This section of the field is thought to hold 223 million recoverable barrels of oil. The government says that it will not allow development until it receives more details about the project, specifically local benefits and royalties.
3. Husky will invest more in White Rose project
Husky has announced that it is planning a $600 million expansion to the White Rose project.
Week of January 7th
1. Hibernia production slowed
Week of December 31st
1. White Rose public comment period
The CNLOPB is inviting public comments on a proposed amendment to the White Rose Development plan. This amendment would allow an increase in production from the oil field. The public has until January 19th to submit comments.
2. Terra Nova
Production at the Terra Nova FPSO is back up after a year of problems that caused production to be stalled for 6 months during 2006. It now hopes to confirm that production reached 100,000 barrels per day.
Week of December 24th
1. Williams tries to gain support on equalization issue
Newfoundland Premier Danny Williams continues to try to gain support on the equalization issue. He is currently writing letters to all federal MPs seeking their support.
2. Newfoundland government gives company $970,000
The NL government has given Orphan Industries, a locally based company, $970,000, as a partial grant toward a $5 million dollar project.
Week of December 17th
1. Newfoundland and Saskatchewan Premiers team up
Newfoundland and Labrador Premier Danny Williams and Saskatchewan Premier Lorne Calvert have teamed up to campaign the nation over the equalization issue. Both would like to make sure that the government will not include natural resource revenues in the equalization equation.
2. White Rose amendment
The CNLOPB is inviting public comments on a proposed amendment to the White Rose Development plan. This amendment would allow an increase in production from the oil field. The public has until January 19th to submit comments.
3. Hibernia Development update given to Government
The update to the Hibernia Development plan has been given to the provincial and federal governments. If approved, development in the South Hibernia field could begin in 2008.
Week of December 10th
1. Oil companies invest in Newfoundland and Labrador offshore
Petro-Canada and Husky have announced that their 2007 capital spending budgets both include projects in offshore Newfoundland and Labrador. Both budgets include drilling a seventh production well in their jointly owned White Rose project. Petro-Canada also plans to drill two development wells and a delineation well at the Terra Nova site. It also has plans to do further drilling in the Hibernia field, but is currently awaiting CNLOPB approval.
2. A second oil refinery would be successful
Phase three of a feasibility study conducted on behalf of Newfoundland and Labrador Refining has concluded that a second refinery in the province would be successful. The refinery would be built in Placentia Bay and cost $4.6 billion U.S. The next phase is an environmental assessment.
3. Petro-Canada faces several slowdowns
After an extended summer shutdown, the Terra Nova FPSO is again experiencing problems. This time, it is experiencing problems with the water injection system, which is expected to cause a production slowdown for the next month. Petro-Canada is also experiencing stalls in its plan to begin an expansion of the Hibernia field. It is currently waiting for CNLOPB approval.
4. Province announces largest annual surplus ever
The province has announced a $199.3 million surplus for the fiscal year 2005-2006. This has been attributed to the renegotiated Atlantic Accord.
5. More exploration of Orphan Basin
Exxon Mobil has announced plans for two new drills in the Orphan Basin in late fall or summer, 2007.
Week of December 3rd
1. Equalization still controversial
Danny Williams maintains his assertion that he will campaign across the country against the Prime Minister if the equalization formula is changed to include offshore resources.
2. More oil found near Terra Nova
Husky Energy and Norsk Hydro Canada have announced that they have found oil near the Terra Nova field. They are currently establishing how much has been found and if it holds commercial possibilities.
Week of November 26th
1. Williams will fight Harper over equalization
Premier Danny Williams maintains that he will fight against Prime Minister Stephen Harper in the next election if equalization regulations are changed to the detriment of the province. Williams has said that he will not only urge voters in the province to vote against the Tories, but he will take the campaign across the country as well.
2. Liquefied Natural Gas storage plan proposed
A St. John’s based company has registered a proposal to build a liquefied natural gas (LNG) storage and shipment plant near Arnold's Cove, NL. The Department of Environment and Conservation is now inviting public comments on this proposal.
3. Williams encourages BC offshore development
Newfoundland and Labrador Premier Danny Williams stated his support for the development of BC’s offshore when he spoke to the BC Chamber of Commerce.
4. Small fire on Terra Nova FPSO
Crew members put out a small fire on the Terra Nova FPSO. No one was hurt and no evacuation was needed.
5. No bids for Sydney Basin
There were no bids for the Sydney Basin during a recent CNLOPB land sale.
Week of November 19th
1. Shell Canada’s 2007 investment 50% higher than last year
Shell Canada has announced that its 2007 investment plan is twice as big as 2006. This plan includes $130 million for exploration and development in frontier areas, such as the Orphan Basin off the coast of Newfoundland and Labrador.
Week of November 12th
1. More protection for offshore
Legislation may soon be passed that will give regional agencies more authority over offshore security. Critics of the current legislation say that because it was created in the 1980s, it is now outdated. They argue that there is now a greater risk that offshore rigs will be targeted by terrorists who want to disrupt western oil supplies.
2. Newfoundland and Labrador expected to lead Atlantic provinces in economic growth
Due to increases in offshore oil production from the White Rose oil field, Newfoundland and Labrador is expected to lead the Atlantic provinces in economic growth in 2007.
3. New tax may hinder expansion at North Atlantic Refining
A recent new tax on income trusts has hurt the company that recently bought the Come By Chance refinery. The change caused the company’s market value to drop by $600 million and may hinder its ability to move forward with a planned expansion.
4. Production restarts at Terra Nova
Production at the Petro Canada operated Terra Nova FPSO resumed on November 12th.
It had been stopped since May due to mechanical problems and planned maintenance.
5. Terra Nova shutdown causes trouble for provincial budget
The provincial government has announced that it is currently running an operating deficit of between $50 and $60 million. This is largely due to the $100 million loss of royalties that resulted from the scheduled and unscheduled shutdowns of Terra Nova since May. This deficit has caused some critics to say that the province has become too dependent on offshore oil revenues.
6. White Rose oil field estimates increased
An increase in the amount of recoverable oil at the White Rose field may be as much as 80% as a result of a new discovery and a new estimate of an old one. Previous estimates were 200-250 million barrels of oil at the White Rose field.
7. Bids received for land offshore Newfoundland and Labrador
The CNLOPB announced that it has received $32.4 million in bids on 6 of the 8 parcels of land offered off the coast of the province. Among the bidders was Husky Energy, with a bid of $15.5 million on a parcel near the southern border of the Terra Nova field.
Week of November 6th
1. Terra Nova expected to re-start production soon
Petro-Canada expects production at the Terra Nova FPSO to re-start very soon. Production has been stopped since May because of mechanical problems and scheduled maintenance.
2. Andy Wells wants Hibernia development application to be public
St. John’s mayor Andy Wells has asked the CNLOPB to make the application to develop the south Hibernia field to be public.
Week of October 15th
1. New focus for Bull Arm
A new Board of Directors has been established for the Bull Arm Site Corporation. The site was originally built for the Hibernia offshore oil project and has since been used for other mega-projects. The new Board plans to market the site more widely to try to get it more steady work.
2. Equalization and fallow field legislation
There is still no final decision on whether or not the equalization formula will be revised. Danny Williams claims that if Harper does not adhere to his previous promise that the offshore oil revenues would not be included in a new formula, the federal Conservative Party could face problems in the next election. The Prime Minister’s office has also stated that it will not support fallow field legislation.
3. Hydrocarbons found in Jeanne D'Arc Basin
Husky Energy Inc. and partner Norsk Hydro ASA have found hydrocarbons in the Jeanne D'Arc Basin. However, they do not know yet whether the find has commercial potential.
Week of October 8th
1. Fallow Field Legislation
During Stephen Harper’s recent visit to the province Danny Williams brought up establishing legislation that would force oil companies to develop oil fields in a timely fashion. This legislation comes after the recent discussions on the Hebron oil field development fell through. Harper has stated in the past that he does not support fallow field legislation.
2. Worry over equalization
Stephen Harper told Danny Williams that he has not decided how to proceed with equalization. Williams was promised during the last campaign that changes to the equalization program would not take money away from the province. However, Williams is now worried that Harper will not follow through with this.
Week of October 1
1. Irving announces plan for new refinery in New Brunswick
Irving oil has announced that it hopes to build a second oil refinery in Saint John, New Brunswick. This comes only shortly after plans for entering phase three of a feasibility study for building a second refinery in Placentia Bay Newfoundland and Labrador was released. It is unclear how Irving’s announcement will influence the Placentia Bay refinery plans. Plans for a new refinery in Nova Scotia were discarded after the announcement.
2. Terra Nova production expected to restart soon
The Terra Nova FPSO, which stopped production back in May, is expected to resume production by the end of October.
Week of September 24th
1. CNLOPB extends exploration license for company
The CNLOPB has agreed to extend the Canadian Imperial Venture Corp. exploration license for 12 months. This requires that the company pay the CNLOPB a deposit of $250,000.
2. Williams says Hebron may still go ahead
Negotiations to develop the Hebron oil field stopped in April, but Danny Williams is still hopeful that development will proceed and states that further news on the subject could be released soon.
Week of September 17th
1. Decrease gas tax with royalties
The liberal opposition party argues that royalties collected from the offshore oil industry should be used to decrease taxes on gas, which are currently at 15.5%. Newfoundlanders currently pay the highest gas rate in Atlantic Canada.
2. Orphan Basin provides scientists with unique opportunity
Companies involved in drilling the exploration well in the Orphan Basin, which was spudded on August 18th, are allowing scientists to use equipment that is normally used to monitor the well to collect images of life on the ocean floor.
3. Oil refinery feasibility study proceeds to phase three
Newfoundland and Labrador Refining Corporation has just completed phase two of a feasibility study that is looking at putting an oil refinery in Placentia Bay. The company is now proceeding to phase three, which is expected to be finished by the end of 2006. The company has also begun an environmental assessment of the project.
Week of September 10th
1. Williams ready to move on in CNLOPB case
Danny Williams has stated that the government of Newfoundland and Labrador will not appeal the Supreme Court’s decision, which stated that Max Ruelokke is the legal head of the CNLOPB. Williams had wanted the position filled by both Ruelokke and St. John’s Mayor Andy Wells. Rather than arguing the matter further, Williams says Wells will fill one of the empty spots on the Board.
2. Williams warned about world oil discoveries
Danny Williams is being warned by the Newfoundland Offshore Industries Association that other oil discoveries around the world may influence decisions made by oil companies about developing in Newfoundland. Williams has stated that he does not care what other fields are discovered around the world.
3. Orphan Basin drilling has begun
Drilling in the Orphan Basin off the Coast of Newfoundland has started. One well has been started and will take 100 to 120 days to drill. This is only the first well and is not expected to reveal the entire potential for the area. Despite whether this well brings positive or negative news, it is expected that more wells will be drilled in the future.
Week of August 27th
1. Danny Williams in Norway
Premier Danny Williams visited Iceland and Norway to get pointers on resource development policies. He learned about the fishery in Iceland and the offshore oil industry in Norway. Norway’s oil policy has long focused on bringing the most benefits to the state, something that Williams has been attempting in Newfoundland.
2. NLRC sale may lead to new refinery
The Newfoundland and Labrador Refining Corp. sees its sale to Harvest Energy Trust of Calgary as a positive step toward the building of a second refinery in Newfoundland. The company is in the second stage of a three part feasibility study that began in February, the purpose of which was to assess the possibility of a second refinery in the province.
3. Petro Canada delays again
Petro Canada will delay re-opening the Terra Nova FPSO again because the work that was scheduled for the summer is taking longer than expected. It had been expecting to restart production in late September but this will now be delayed until the end of October.
Week of August 20th
1. Williams receives criticism for comments
The Bar association says that public comments made by Danny Williams about the Supreme Court ruling on the CNLOPB appointment were not appropriate. Williams spoke publicly against the ruling, which stated that Max Ruelokke is legally the head of the CNLOPB. Williams’ comments included personal remarks about the ruling judge, something the Law society claims is against its code for practicing lawyers.
2. Come By Chance Refinery Sold
North Atlantic Refinery, previously owned by Swiss Company Vitol SA, has been sold to Harvest Energy Trust of Calgary for 1.6 billion dollars. This sale includes the Come by Chance Refinery as well as North Atlantic gas stations. Business is expected to continue as usual. An expansion plan that had been started before the refinery was sold may continue, but no definite plans have been established. Vitol says that the plan would require 600-800 million to continue.
Week of August 14th
1. Businesses urge Air Canada to reconsider London flight
Businesses related to the oil industry are urging Air Canada to continue its daily flight to London. They argue that stopping this flight could negatively impact the oil industry and the economy in general.
2. CNLOPB position verified
The Federal Government has verified Max Ruelokke as the head of the CNLOPB. A ruling by the Supreme Court last week stated that Ruelokke has legally been head of the CNLOPB since he was appointed. It also stated that Andy Wells, who the government of Newfoundland wanted to share the position, is not qualified for the job. Danny Williams has criticized this ruling publicly.
3. Increased Revenues
The Government has reported that revenues were greater than expected for the fiscal year that ended on March 31st. This was largely due to an increase in offshore oil royalties of $20.4 million.
Week of August 6th
1. Judge says Andy Wells not qualified to head CNLOPB
The Court declared that Max Ruelokke has been the chair of the CNLOPB since he was appointed earlier this year. The government of Newfoundland and Labrador was trying to get the position split in two, with St. John’s Mayor Andy Wells in the second position. However, a judge has stated that Wells is not qualified.
2. Hebron development
Overview of the stalled Hebron development plans and what it could mean for the province.
Week of July 30th
1. Danny Williams brings issues to Ottawa
Danny Williams will try to use the support of fellow premiers to his advantage when he brings the issue of equalization and the Hebron development to Ottawa.
2. Orphan Basin exploration to begin next month
Exploration in the Orphan Basin is set to begin next month. This area has not been explored yet and could hold more oil than the Jeanne D'Arc Basin on the Grand Banks. Development of the Orphan Basin would be difficult because the environment is harsh and deep wells have to be drilled. It will take 4 months to determine whether there is commercial oil in the area.
Week of July 23rd
1. No agreement reached on equalization
There was no agreement reached at the annual meeting of Premiers about how to deal with the fiscal imbalance. This means that the final decision will be left up to the Prime Minister.
2. Husky rating increases
A global credit rating agency has upgraded Husky energy’s rating from BBB to BBB+ based on production from its White Rose facility.
3. Terra Nova lowers full year production outlook
Due to the unanticipated shut downs at the Terra Nova FPSO this year, Petro Canada has decreased its year-long production outlook by almost 7%.
4. Newfoundland leads economic growth
Newfoundland is expected to lead the country with 6% economic growth this year. However, it is expected to slow to only 2% next year.
5. Premiers support Hebron stance
The 13 Canadian Premiers voiced their support for the hard stance that Danny Williams has taken with regard to the Hebron development. Williams has stated that he will not allow development of the field if the companies do not agree to certain things that will bring more benefits to the province.
Week of July 16th
1. High oil prices help province
Economic growth in Newfoundland is expected to be 5% this year. This is a big leap from the 0.4% growth in 2005. This growth rate is second in the country only to Alberta and can be attributed to high resource prices.
2. Vulcan Minerals Inc. forms new offshore exploration company
Vulcan minerals has entered into an agreement that will facilitate further exploration in Western Newfoundland.
3. Oil industry claims price regulations will cause increased cost of gas
The oil industry has stated that price regulations, such as those that have been in place in Newfoundland since 2001, will cause the price of gas to be higher at the pump.
4. Newfoundland and Ontario premiers discuss fiscal imbalance
Danny Williams and Dalton McGuinty discussed the country’s fiscal imbalance, although no agreement was made about what should be done.
5. Husky reports increased net earnings
Husky reported that net earnings in the second quarter of 2006 are up 148% from the second quarter of 2005.
Week of July 8th
1. White Rose opens 5th production well
White Rose oil production is now at 110,000 barrels per day with the opening of its 5th production well. A 6th well is expected to start production at the end of 2006 which will increase production even more.
2. Max Ruelokke brings his issue to court
Max Ruelokke is trying to get the province to finally appoint him as the head of the CNLOPB by taking the government of Newfoundland to court. He was chosen months ago, but the province has stalled his appointment because it wants the position broken into two.
3. Williams not pleased with Exxon
Danny Williams says that ExxonMobil misrepresented its numbers for the Hibernia field in order to better its bargaining position for the Hebron field development. ExxonMobil complained of lower profits than expected from Hibernia at the time. Williams claims that Exxon agreed to allow an independent auditor to examine its books but then changed its mind.
4. Orphan Basin exploration comments
CNLOPB is accepting comments on the Draft Screening Report for the proposed Orphan Basin Exploration Drilling Program.
5. Government updating oil spill response guidelines
Week of June 25th
1. Husky Energy partners with Norsk Hydro
Husky Energy has partnered with Norsk Hydro to increase drilling near the Terra Nova oil field. The drilling will take place in West Bonne Bay SDL 1040, an area in which Norsk Hydro has a 90% working interest. The drilling is expected to take 60 days.
2. CNLOPB appointment brought before City Council
The issue of the CNLOPB head was brought before the City Council but then dropped because it is now before the Supreme Court of Newfoundland.
3. Terra Nova living quarters added
Part of the work being done on the Terra Nova platform is the addition of living quarters. Living quarters on the platform will increase from 80 to 120.
4. CNLOPB annual report released
The annual report of the CNLOPB discusses two decades of growth and future possibilities for the offshore industry in the province.
Week of June 18th
1. Terra Nova FPSO leaves for the Netherlands
The Terra Nova FPSO will detach from the oil field in Newfoundland in order to travel to the Netherlands where its scheduled maintenance work will take place. The trip will take two weeks and the FPSO will remain there for 40 days.
2. Exxon warns Newfoundland
ExxonMobil warns Newfoundland that its position on the Hebron oil field development risks causing the oil industry to lose momentum. ExxonMobil has the biggest stake in the field and is believed, by Danny Williams, to be the cause of the development talks falling through.
3. Husky finds more oil
Husky oil has found between 40 and 90 million barrels of oil in the western part of the White Rose oil field. This amount is in addition to the probable 240 million barrels that had already been discovered.
4. Danny Williams will not be pressured by oil companies
Despite pressure from local suppliers and big oil companies, Danny Williams says that he will not be pressured into a deal on the Hebron oil field development before he is ready.
Week of June 11th
1. Come By Chance refinery will not be bought by Valero
Texas-based Valero Energy Corp., the largest oil refining company in North America, will not buy the come by chance refinery.
2. Hibernia gets new President
Effective July first, Wayne Warwick will be the new president of Hibernia.
3. Danny Williams’ tough stand with oil companies
A review of the recent issues surrounding the Hebron oil field and the insistence by premier Danny Williams that the province receive more than from previous oil developments.
4. Newfoundland may see Hibernia money by 2011
The revised estimates for the Hibernia oil field mean that it may have its development costs paid off by 2011, after which point the government will receive 30% royalty rates.
Week of June 4th
1. Max Ruelokke takes government to court
Max Ruelokke, the man appointed by a three person panel earlier this year to head the CNLOPB, is taking the government of Newfoundland to court. This comes as no surprise; Ruelokke has said before that he may take legal action because of the delay in start time for his new job. The delay comes from the fact that the Newfoundland government wants the position split between Ruelokke and St. John’s mayor Andy Wells.
2. A controversial proposal for equalization
A report was released that suggests drastic changes in the equalization program. The changes would include some revenues from natural resources in the equalization calculations. If these changes were implemented they would cost Newfoundland 100 million each year.
Week of May 28th
1. Newfoundland government trying to force development of significant finds
The Newfoundland government is still considering legislation that would ensure that significant finds are developed rather than sitting undeveloped. This legislation, however, would need federal approval, something the conservatives don’t seem very interested in giving.
2. Offshore industry boosts city of St. John’s GDP
The GDP in St. John’s is expected to rise 6.5% this year. It is expected to rise even more next year when the White Rose field is producing at full capacity.
3. Charges over recent spill not likely
Charges will not likely be laid in response to the most recent oil bilge spill case. Although authorities have tracked the oil to a specific ship, adequate evidence to prove it was at fault could not be found.
4. Terra Nova cleanup
Audio story from CBC about the Terra Nova FPSO cleanup that began last week. Interview with Bill Montevecchi.
http://www.cbc.ca/thestjohnsmorningshow/#wednesday (audio from CBC)
5. More oil offshore that previously estimated
CNLOPB has revised the amount of oil that is estimated to be offshore Newfoundland. This could lead to talksregarding the development of the Hebron oil field restarting more quickly. The revised estimates also mean that Hibernia is now expected to stay online until 2030.
Week of May 21st
1. Terra Nova FPSO repairs begin
An estimated 8-9 million dollars will be spent on a 10 day cleanup that will remove oil buildup on the hull of the Terra Nova FPSO. At the same time, oil from the November 2004 oil spill that has been trapped in marine growth will also be removed. The FPSO will then be removed from site for further repairs throughout the summer.
Week of May 14th
1. Newfoundland and Labrador Hydro soon likely be allowed to play role in oil industry
If legislators pass Bill 1, Newfoundland and Labrador Hydro will be allowed to enter into offshore oil and gas activities, such as exploration and refining.
2. Will Hebron talks resume?
Fearing that the stalled Hebron project will be detrimental for developing further expertise in the fields of engineering and geosciences, The Association of Professional Engineers and Geoscientists has asked Premier Danny Williams and the owners of the Hebron oil filed to resume talks about developing the field.
Week of May 7
1. White Rose reaches 100,000 barrels of oil per day
The Husky operated White Rose oil field produced 100,000 barrels of oil on May 9th as a result of a fourth well. This amount is expected to be sustained when a 5th well is opened.
2. Terra Nova shut down until fall
The Terra Nova FPSO was shut down on May 9th after a mechanical failure. This is about a month earlier than the shut down that was scheduled for June. The company does not expect normal production to resume until the fall.
3. Newfoundland and Labrador export rates grow thanks to oil
4. Another refinery in Newfoundland?
A feasibility study is being conducted to assess the possibility of a second oil refinery in Placentia Bay, Newfoundland. The study will cost 7 million dollars.
5. Offshore job safety
Nova Scotia, Newfoundland and the federal government are trying to create similar legislation on offshore safety so that companies deal with the same rules regardless of where they are operating.
Week of April 30, 2006
1. Terra Nova Fined for November 2004 Oil Spill
Terra Nova received a 290,000 dollar fine for the spill that took place in November 2004. This represents the biggest fine for a pollution case in Atlantic Canada to date. Charges for the spill were laid in July after CNLOPB investigated.
2. Terra Nova Production Back to Normal
CNLOPB has stated that Petro-Canada can resume its normal operations at the Terra Nova platform. Production was stopped on April 24th after a small oil spill took place.
Week of April 23, 2006
1.Nova Scotia Government invests in offshore research
The government of Nova Scotia will spend 5.2 million dollars for research on oil and gas development in the province as well as the effects that exploration might have on the environment.
2. Another spill at Terra Nova
A small spill took place at the Petro-Canada operated Terra Nova offshore oil platform off the coast of Newfoundland. The spill was small in comparison to the spill that took place in November 2004.