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View Full Version : Forget handouts: East on way to 'have' status


skyscraper_1
Nov 18, 2007, 4:28 PM
Atlantic Canada recognizing 'untapped potential': oil exec

BY SHAUN POLCZER
CanWest News Service

The wind is howling over the lookout in Newfoundland's Come By Chance as gigantic supertankers ply the frigid waters of Placentia Bay, carrying cargoes of crude oil to offloading terminals at the base of the craggy rocks.

After decades of relying on handouts to sustain itself, the tides are shifting all across Atlantic Canada as the region struggles to regain control of its economic destiny.

None more so than Newfoundland, which has emerged as Canada's leading producer of light conventional oil.

A decade ago, Alan Brown was Hibernia's operations manager, inaugurating Canada's first big offshore project. This July he returned to the Rock as Petro-Canada's newly minted offshore boss.

Coming back to St. John's, he's struck by the changes that have taken place in the restaurants and coffee shops - and on the high seas, which will boast four world-class fields when Hebron comes on-stream.

"There's a deeper-rooted prosperity now," he insists. "What struck me coming back is that the prosperity isn't surface thin. There's actually the beginnings of a strong inertia, a strong critical mass.

"There's potential and opportunity to be tapped here," he says. "The expertise and prospects are as good as any in the world and I've been to most oil basins in the world. It's so important to Canada and the province, as well as the company."

Though Alberta accounts for 80 per cent of the nation's oil-and-gas production, Atlantic Canada is rapidly becoming a polar axis of big offshore projects, refineries, liquefied natural gas (LNG) terminals and nuclear power plants.

In Newfoundland, a consortium of multinational oil companies led by Chevron set aside their differences with the province's political leadership to pave the way for the $6-billion Hebron offshore oil development. This year, the province's oil royalties could top $1 billion for the first time, up from about $386 million in 2006.

With the Hebron deal, Newfoundland Premier Danny Williams says the province is on a roll - it's more than just a mantra; it's his mission.

"I stay focused and just keep moving forward. And we're gettin' there. I'm delighted with the way things are going right now."

The energy is being felt in Nova Scotia, which is leveraging some of the highest tides in the world on the Bay of Fundy to lead the development of the next generation of tidal power. More than 100 billion tonnes of seawater flow in and out of the bay twice a day and the U.S.-based Electric Power Research Institute identifies the inlet as perhaps the most potent site for tidal generation in North America, and indeed the world.

When fully developed, in-stream tidal technology has the potential to generate 300 megawatts of clean, green electricity - enough to power 100,000 homes.

What differentiates the East Coast from Alberta is the diversity of its prospects, says former Nova Scotia energy minister Bill Dooks.

This summer, Halifax marked a milestone with the arrival of Sable Island gas for use by the city's downtown core. In addition to offshore natural gas developments such as Sable and the forthcoming Deep Panuke project and the some of the highest tides in the planet, Nova Scotia boasts world-class wind resources as well.

Dooks says tidal energy could prove to be the magic bullet that helps the province produce massive amounts of power without increasing greenhouse gas emissions. In addition, Nova Scotia has the potential to become a technological leader in much the same way Denmark became a world leader in wind turbines.

"We want the best technology for the Bay of Fundy," he says. "We need to know which machines can survive the enormous force of our tides, what kind of power they can deliver and what impact, if any, they have on our environment."

In addition, the province is pouring money into research and development to encourage more offshore drilling on its deepwater shelf. Over the past 18 months the government has allocated $6-million worth of R&D grants to encourage exploration drilling.

But the biggest success story could be in New Brunswick - home to 1.5 moose for each one of its 750,000 citizens - which is fast becoming the onshore energy hub of the Maritimes, thanks to a diverse array of new infrastructure projects including Canada's first LNG offloading terminal, the country's first new oil refinery in three decades and a pair of new Candu reactors at Point Lepreau that will make it the largest nuclear province after Ontario.

"Everybody sees Atlantic Canada differently out West," says New Brunswick Energy Minister Jack Keir.

"I know that because every time I'm out in Calgary and we're at a tavern having a beer and talking to the local folks, they just don't get the opportunities that are out here.

"I believe that perception is wrong," he continues. "They just don't get it."

Whereas Alberta has been blessed with an embarrassment of riches - including the largest known oil reserves outside the Middle East - the Maritimes have had to scratch and claw for everything they have, whether it's fish from the sea or harnessing power from the wind.

According to Kevin Scott, Irving Oil's refining director in Saint John, the region's key competitive advantage is its geography.

New Brunswick's pre-eminent refiner is planning to double the capacity of its Saint John facility to 600,000 barrels a day of which 525,000 barrels would be exported.

If it goes ahead, it would be Canada's first refinery since Shell Canada built the Scotford refinery outside Edmonton in 1984 and one of the largest facilities in North America.

"What's driven our success and potential to expand is our location," he says. "We're as close here as any refinery on the Gulf Coast to major supply centres and markets."

http://www.hfxnews.ca/index.cfm?sid=81355&sc=89

skyscraper_1
Nov 18, 2007, 4:29 PM
ALBERTA LOOKS EAST: Bringing back those who left for work

This series of articles from the Calgary Herald analyzes energy development in Atlantic Canada from an outside perspective The flow of workers heading west may be reversed as development across Atlantic Canada lures people home

ST. JOHN'S, N.L.
SHAUN POLCZER
CanWest News Service

Head east, young man. It's the bane of Atlantic Canadians who left over the years seeking greater opportunities in the oilpatch, chasing the almighty dollar in Alberta at the expense of pulling up generations of roots on the other side of the country.

But with major energy projects taking shape all through Atlantic Canada, the tide may be turning as people return to take advantage of growing economic opportunities.

Derek Barbour, a real estate agent in St. John's, N.L., says he's noticed a sea change in the housing market ever since Newfoundland and Labrador sealed a deal to develop the massive Hebron offshore oil project earlier this fall. Houses that languished on the market for months are suddenly selling - and fast.

"There's a growing pent-up demand with the recent developments in the offshore and other projects budding here. There's a general consensus that, in 18 to 24 months, we could be looking at a housing shortage," he says excitedly. "Some of it's speculation. Some of it's from out West; people are returning. I think there's a lot of people out here that don't realize what's going on. So many take it for granted, especially if they've never been away."

And it's not just in Newfoundland. With the energy boom taking shape in provinces like New Brunswick and Nova Scotia, it's time for all those people to think about coming home, says Jack Keir, New Brunswick's energy minister.

"There's all kind of folks that went out by the busload to Alberta, you know, to Fort Mac (Fort McMurray) and those places. Well I have a message for you, we're going to bring them all back."

It's a homegrown exodus that has drained the Atlantic provinces of people and talent now needed to sustain the first real economic growth the region has seen in decades.

Keir rattles off a list of projects that would make any Albertan blush: Canada's first new refinery in nearly three decades; a pair of new nuclear reactors at Point Lepreau; the East Coast's first liquefied natural gas (LNG) terminal; abundant sources of wind and tidal power on the Bay of Fundy, all a stone's throw from the largest energy-consuming market in the world - the United States.

Like Alberta, New Brunswick is grappling with the challenge of where to find all the people to fill those jobs. It's a problem the province has never had to face before, and Keir thinks he knows where to start - downtown Calgary.

"They all want to come home," he continues. "Maritimers want to be in the Maritimes. They went out there because there wasn't any work. Well, we're going to produce that work for them so they want to come home."

New Brunswick's unemployment rate fell below 10 per cent for the first time in more than a generation in 2004, and currently stands at 6.8 per cent. By contrast, it was around 15 per cent through much of the 1980s.

Those numbers don't mean much in Alberta, which is facing a shortfall of 100,000 new workers to fuel the economy over the next decade. The East Coast continues to be a huge draw.

All other things being equal, such as salaries and educational opportunities, intangibles like quality of life rise to the fore when making the decision to stay or go. As inflation continues to rise in Alberta, driving up the price of everything from hamburgers to housing, the lure of returning to places like Nova Scotia and Newfoundland grows.

"Many people from Atlantic Canada would like to move back even if they (are) paid less," says Andrew Sharpe, a researcher Centre for the Study of Living Standards (CSLS).

A July study by the centre found that oil-and-gas extraction was identified as a sector of the economy that benefits from an inordinate number of migrant workers.

Alberta has traditionally benefitted from skilled labour leaving other parts of the country, but Sharpe said it cuts both ways.

"From the point of view of Alberta, the province might have a harder time finding workers, but that's the way it goes."

According to Ross Finnie, a research expert at Queen's University, migrants respond quickly to changing economic incentives, moving in and out of areas with the greatest job opportunities. Although migration to Alberta has been high since the 1970s, Finnie noted that the province had the largest negative outflow of migrants when oil prices fell in the late 1980s, mostly to Ontario.

Although economic numbers are easily quantifiable, more difficult to gauge is the tug on the heartstrings of homesick Maritimers, whom Finnie notes are "homebodies" by nature.

Tracy Smith, a process engineer at the North Atlantic refinery in Come By Chance, N.L., says she'd never give a second thought to heading west. She has family in Calgary, but Wild Rose Country just isn't for her.

"It was busy, compared to Newfoundland. It was nice, but I like being home. We're a homebody people, and when you talk to Newfoundlanders, at the end of the day, they want to get back," she says.

"I'm born and raised a Newfoundlander and I'm glad to have the opportunity to come back and work in my profession."
http://www.hfxnews.ca/index.cfm?sid=81356&sc=89

MolsonExport
Nov 19, 2007, 5:23 PM
It is very pleasing to read all the positive economic news out of one of my favourite regions of the country.

skyscraper_1
Nov 20, 2007, 3:59 AM
It is nice to finally the economic scene looking really good. It is not just the offshore energy sector either. From construction, aerospace and defense, IT, life sciences and financial service sectors are all growing. In the future it will be interesting to watch how the Keltic Petrochemical development and "Atlantic Gateway" turn out. Another potential source of growth is Onshore shale and coal gas developments in both New Brunswick and Nova Scotia.

Alberta Bound
Nov 20, 2007, 1:35 PM
Another potential source of growth is Onshore shale and coal gas developments in both New Brunswick and Nova Scotia.

I saw a report a couple years ago that said the price of oil would need to reach nearly $100 per barrel before oil shale would be profitable. This price could be much lower if newer technologies were used. Southeastern NB has something like 60 million barrels of shale oil in the ground so it could be something to consider in the future.

Alberta Bound
Nov 20, 2007, 1:53 PM
Like Alberta, New Brunswick is grappling with the challenge of where to find all the people to fill those jobs. It's a problem the province has never had to face before, and Keir thinks he knows where to start - downtown Calgary.

"They all want to come home," he continues. "Maritimers want to be in the Maritimes. They went out there because there wasn't any work. Well, we're going to produce that work for them so they want to come home."
This isn't true in my case and probably not in many other cases. I came to Calgary from Saint John, not because I didn't have work in NB but because I felt like I was stagnating in my career. The amount of work, the demand for employees and employee turn over is high enough here that if you know a little about something and are willing to work hard, you can advance your career at a much quicker pace.

skyscraper_1
Nov 20, 2007, 6:47 PM
This isn't true in my case and probably not in many other cases. I came to Calgary from Saint John, not because I didn't have work in NB but because I felt like I was stagnating in my career. The amount of work, the demand for employees and employee turn over is high enough here that if you know a little about something and are willing to work hard, you can advance your career at a much quicker pace.

There usually two kinds of workers moving west now. Professionals that have reached a 'glass ceiling' here and want more opportunity. The other group are the unemployed and working class people that want an opportunity to make a lot of money fast.

The second group is more likely to come back if economic conditions improve greatly here.

I saw a report a couple years ago that said the price of oil would need to reach nearly $100 per barrel before oil shale would be profitable. This price could be much lower if newer technologies were used. Southeastern NB has something like 60 million barrels of shale oil in the ground so it could be something to consider in the future.

NB has Shale Oil? Awesome...although the economics might not be here yet.

HomeInMyShoes
Nov 20, 2007, 7:53 PM
There is a lot of new research (http://forum.skyscraperpage.com/showthread.php?t=140404) going on for oil shale though.