Economic News Affecting St. John's

[crackiedog]

Originally Posted by goodgrowth

That number sounds really high for just one year of spending...that's like our entire GDP...

I think he is referring to project spending in the province by all parties, not just provincial government spending.

[PoscStudent]

Originally Posted by crackiedog

I think he is referring to project spending in the province by all parties, not just provincial government spending.

Is not just one year anyway, these are multi-year projects.

[jeddy1989]

NL Economic Growth Tops All

The latest RBC Economics Provincial Outlook released today propels Newfoundland and Labrador's economic growth to the top of expected provincial growth ratings in 2013 at 6 per cent. The outlook says a rebound in the oil and gas sector, coupled with improving conditions for large-scale mining projects, is responsible.


Senior Vice-President, Craig Wright, says despite lacklustre performance so far this year, crude oil projection levels through the end of 2013 are expected to yield a sizeable year-over-year boost in activity. He says by next year, oil production will have recovered from depressed levels and will ease real GDP growth to 1.3 per cent. RBC says the ramping up of work on Hebron, a recently approved third extension at White Rose, and two offshore oil discoveries this summer, will pave the way for sustained contributions from the oil and gas sector as key economic drivers through the medium-term.

RBC projects employment to grow by 1.5 per cent this year and 1.4 per cent next year. It also says prices for iron ore have drifted higher more recently and that's expected to boost production volumes. RBC cites the completion of the Long Harbour nickel processing facility and a subsequent ramp up of production to augment production at the Direct Shipping iron ore project and the Iron Ore Company of Canada's phase two expansion in 2014.

http://www.vocm.com/newsarticle.asp?mn=2&id=38579&latest=1

[statbass]

Some less than stellar news on the economic front

VOCM
September 20, 2013

Isolation, location, and refining overcapacity are all going against the sale of the Come by Chance oil refinery. That's according to an industry analyst who feels the refinery may have to be shut down now that its operators have put it up for sale. Michael Ervin of MJ Ervin and Associates says two east coast refineries which were up for sale recently had to close down.

e says Shell's Montreal refinery has been turned into a distribution centre, while Imperial's Dartmouth refinery failed to attract any takers. He says that refinery will be drawing down its final feedstocks in the next week or two and decommissioned for good.
...

http://www.vocm.com/newsarticle.asp?mn=2&id=38690&latest=1

What boggles my mind is that Dunderdale stated this is a largely a private sector issue, but wasn't the potential shut down of the Kruger mill in Corner Brook largely a private sector issue? This seems to be a little hypocritical to me....

[jeddy1989]

Offshore Wind Farm on West Coast Annouced

A major new industry with up to 600 jobs is in the works for Western Newfoundland. IN Corner Brook this morning Beothuk Energy announced plans for a large scale offshore wind farm and a manufacturing facility in the west coast city.

Beothuk is currently in the planning stages with the Corner Brook Port Corporation for what they say will be a green form of energy with very low environmental impact. As for the manufacturing facility, it will take the form of a GBS, a gravity based system, similar to that used on Hibernia, but a bit smaller.


Beothuk's Kirby Mercer says oil and gas reserves are being depleted, creating a greater demand for clean, green energy. He says their plan is to harness the energy from offshore wind to help generate power. He says the wind farms will be developed up to 50 miles offshore, with no noise or visual pollution.

http://www.vocm.com/newsarticle.asp?mn=2&ID=38724

[Trevor3]

Originally Posted by jeddy1989

Offshore Wind Farm on West Coast Annouced


http://www.vocm.com/newsarticle.asp?mn=2&ID=38724

This is really intriguing. I read about it just a little while ago but I'm not sure what to think of it. Definitely an outside the box idea, hopefully this one comes to fruition.

[Marty_Mcfly]

Originally Posted by statbass

Some less than stellar news on the economic front

VOCM
September 20, 2013

http://www.vocm.com/newsarticle.asp?mn=2&id=38690&latest=1

What boggles my mind is that Dunderdale stated this is a largely a private sector issue, but wasn't the potential shut down of the Kruger mill in Corner Brook largely a private sector issue? This seems to be a little hypocritical to me....

I had no idea the financials of the refinery were so poor. It does make sense though I guess. It's a shame because that place would be a potential place for me to find employment

[statbass]

Originally Posted by Marty_Mcfly

I had no idea the financials of the refinery were so poor. It does make sense though I guess. It's a shame because that place would be a potential place for me to find employment

This is not just a local problem but also global, lower demand and higher supply has forced refining companies to scale back operations. A bunch of refineries all over the world have shut down over the past few years. There was a refinery shut down in Montreal a couple of years ago and the one in Dartmouth is slated to shut down very soon I believe. Just a sign of the times, unfortunately this happens from time to time. I believe CBC refinery was shut down for a better part of the eighties until the price of oil rebounded and demand for the refinery increased. Hopefully they can find another buyer.

[statbass]

Originally Posted by jeddy1989

Offshore Wind Farm on West Coast Annouced


http://www.vocm.com/newsarticle.asp?mn=2&ID=38724

Excellent news about a potential wind farm on the west coast. A great way to negate my negative post about the CBC refinery. Good job, Jeddy!

[jeddy1989]

Originally Posted by statbass

Excellent news about a potential wind farm on the west coast. A great way to negate my negative post about the CBC refinery. Good job, Jeddy!

hahahah Sorry I didn't mean to do that.

yeah it wouldn't be good if the oil refinery closes down, hopefully it turns out to be one of the ones left in production on the east coast.

and it is ironic that the government takes such a different position on this than on paper mills ... we all know why though ... because it is the stance they SHOULD have taken on those other industries but the people out there would kick up a huge fuss saying "if this were SJ they would save it blah blah blah" so they had to to save a few seats out there ..

[Trevor3]

Originally Posted by jeddy1989

hahahah Sorry I didn't mean to do that.

yeah it wouldn't be good if the oil refinery closes down, hopefully it turns out to be one of the ones left in production on the east coast.

and it is ironic that the government takes such a different position on this than on paper mills ... we all know why though ... because it is the stance they SHOULD have taken on those other industries but the people out there would kick up a huge fuss saying "if this were SJ they would save it blah blah blah" so they had to to save a few seats out there ..

It's all the power of politics. Come by Chance is in just one electoral district, at least that's my understanding, and it's a large district so there isn't much trickle down/out from there.

Corner Brook Pulp and Paper has a direct impact on 4 districts: Humber East, Humber West, Bay of Islands, and Humber Valley. That, and the fact we are talking about a major city (as far as the province is concerned) makes it a pretty substantial issue for government. Come by Chance? Not so much.

[statbass]

Originally Posted by Trevor3

It's all the power of politics. Come by Chance is in just one electoral district, at least that's my understanding, and it's a large district so there isn't much trickle down/out from there.

Corner Brook Pulp and Paper has a direct impact on 4 districts: Humber East, Humber West, Bay of Islands, and Humber Valley. That, and the fact we are talking about a major city (as far as the province is concerned) makes it a pretty substantial issue for government. Come by Chance? Not so much.

Very true, loosing the mill would be a much larger impact on the population (and voter sentiment) than the CBC refinery. However, the district may be small in population but large in economic benefits; after all, there's the refinery, nickel processing plant, and Hebron - three large projects. At the end of the day let's still hope a buyer is out there though.

[Marty_Mcfly]

Come By Chance is actually in an electoral (provincial) district that doesn't see most of its economic spin-off. Bellevue is a small, low-population district encompassing the northern Burin Peninsula over to the end of the isthmus. The places that a large number of these workers live, like Placentia and Bay Roberts, are in separate districts. I guess its effects are a little more wide spread, but definitely not to the same degree as the forestry. I grew up in the Bellevue district and you'd definitely never know you were in the same electoral pool as that of a huge oil refinery.

[jeddy1989]

more good news!

Statoil Releases Oil Discovery Details in Bay du Nord

There is big news from the province's oilpatch today. Statoil says an estimated 300-600-million barrels of recoverable oil is located in the Bay du Nord discovery. The Bay du Nord discovery is located 500 kms northeast of St. John's.

Geir Richardson, Statoil's Vice President of Exploration for Canada, says this discovery, is Statoil's biggest discovery ever, outside of Norway. For offshore Newfoundland this is a new high impact discovery in the Flemish Pass. It is light oil, so it opens up a new area offshore Newfoundland for exploration and future work.

Bay du Nord is Statoil's third discovery in the Flemish Pass Basin. The previous Mizzen discovery is predicted to hold about 100-200 million barrels of oil. The other, Harpoon discovery, is still under evaluation.

http://www.vocm.com/newsarticle.asp?mn=2&id=38937&latest=1


Business Confidence in Province Tops Country: CFIB

The Canadian Federation of Independent Business says business confidence in this province tops the country. The group says Newfoundland and Labrador's Business Barometer index bounced up to 72.2 in September, its best result so far in 2013.

Fifty-six per cent of respondents cite that their business performance is good, close to its historical average. Twenty-four per cent plan on adding full-time staff in the coming months, which is the lowest so far in 2013, but still well above its historical average.

http://www.vocm.com/newsarticle.asp?mn=2&id=38941&latest=1

[jeddy1989]

Hopefully we will see the need for a Statoil regional headquarters in the near future

[statbass]

Originally Posted by jeddy1989

Hopefully we will see the need for a Statoil regional headquarters in the near future

That is great news for the region.. keep it coming. And yes, I too hope to see a regional Statoil headquarters here in the near future!

[Marty_Mcfly]

[statbass]

This is not really economic news (well, at least not directly) but it does however have potential economic impact on our region and province. Plus, I wasn't sure where else to post this:

VOCM
Sept 27, 2013
Unknown author

Joan Shea says it will take more than fertility or immigration alone to increase the population of the province. The Minister Responsible for the Population Growth Strategy announced a series of 11 consultations to be held in communities across the province during the month of October. Shea says there are a number of reasons why the province's population has remained stagnant, pointing to things like smaller families, an aging population, and retiring baby boomers. She says both urban and rural communities can benefit from immigration.

She says communities need to be open to accepting new people into their towns so people can live, work and contribute in a meaningful way.

Shea hopes the consultations will provide insight into what it will take to get people to stay in Newfoundland and Labrador.

http://www.vocm.com/newsarticle.asp?mn=2&id=38959&latest=1

[jeddy1989]

Amendments Accepted for Mining Assessment

The Department of Environment has accepted amendments made to the Environmental Impact Statement for the Kami Iron Ore Project in Labrador West. The proposed project involves an open pit mine, tailings pond, processing plant, and railway transportation. The project is scheduled to start construction by early next year pending final approval. Operations are projected to be completed by 2030.

Meanwhile, an Environmental Impact Statement is being sought for the proposed Wabush 3 Open Pit Mine project in Labrador. Public and Aboriginal organizations are invited to review the EIA guidelines and provide written comment by November 12th.

http://www.vocm.com/newsarticle.asp?mn=2&id=39218&latest=1

[statbass]

VOCM
Oct 7, 2013
Unknown Author

The C-NLOPB has issued what it calls two significant discovery licenses in the Jeanne d'Arc Basin. While no estimates for total oil have been released, the licenses indicate that the board is satisfied that there could be enough oil at the Ballicatters site for sustained production. Ballicatters is located in the middle of the province's current producing projects about 22 kms northeast of Hibernia. Suncor and Statoil are 50/50 partners.

The news follows the estimated 300-600-million barrels of oil Statoil believes is available at Bay du Nord in the Flemish Pass Basin.

http://www.vocm.com/newsarticle.asp?mn=2&id=39336&latest=1