Shell to spend $1B on N.S.'s offshore oil and gas

[halifaxboyns]

No bash against NL intended, but I have to say I'm a little surprised that the office development in SJ's has been going up because of offshore oil? I would've thought that offices would've focused on being in the city of regional significance (close to the airport with the best flights and accessibility to the offshore), which really is Halifax. Granted, YYT has improved some flight links over the years and is growing again.

My hope is that this is a catalyst to get some new office development (beyond what's occurring now) happening. Would be nice to see a few new 20 storey office towers go up, granted Nova Centre will provide some. But even if International Place got built (along with NC), I'd like to see a few more. Bulk up the skyline a little.

[scooby074]

NL government is NOT stupid with their natural resources and maximizing any potential spin-offs.

I would not be surprised if buried in the contracts for access to the oil, there was a clause requiring a local office.

Nova Scotia on the other hand, can't seem to give our resources away fast enough with little in the way of "mandatory" spending within the province.

[SignalHillHiker]

Hey, happened into this thread because I saw the title and wanted to tell you to post it in the Provincial Economies section in the Canada forum - it's great news.

RE: Where the oil and gas companies will set up. Just to give you our perspective: I think the reason we were able to get any at all is that (some of? all of? I don't know) the ships that service this industry are based here. A developer pointed that out to me on a tour of one of the new office towers being built here. His exact words are, "They'll like this building because they can see their ships right out the window. That's what they want."

We're hoping it builds from there, that because some have offices here, they all feel they should because that's just how it is, to stay in the game. Not that I wish any misfortune on Halifax, but we're desperately hoping that we can make St. John's the primary beneficiary of our resource windfall - and use this boom like other oil and gas cities to really grow quickly and reach the critical mass we need to become more difficult to neglect in the future - especially since we start at a significant disadvantage. Halifax is much larger, more conveniently located, probably easier to attract mainlanders in the industry to move to, etc.

So that's, in my opinion, an accurate assessment of how we see what's happening, why, and how we want it to play out.

[jeddy1989]

Originally Posted by halifaxboyns

No bash against NL intended, but I have to say I'm a little surprised that the office development in SJ's has been going up because of offshore oil? I would've thought that offices would've focused on being in the city of regional significance (close to the airport with the best flights and accessibility to the offshore), which really is Halifax. Granted, YYT has improved some flight links over the years and is growing again.

My hope is that this is a catalyst to get some new office development (beyond what's occurring now) happening. Would be nice to see a few new 20 storey office towers go up, granted Nova Centre will provide some. But even if International Place got built (along with NC), I'd like to see a few more. Bulk up the skyline a little.

The reason why it is here is because we are closer to our oil feilds, all the fabrication and building of the oil rigs etc. many spin off companies just to service the oil industry. Also:

CALGARY, Alberta – Exxon Mobil Corp said on Friday it is moving forward with the next major offshore oil project in the North Atlantic, the $14-billion Hebron development off the Newfoundland coast, boosting its investments in Canada’s most oil-rich regions.

Exxon Mobil, the U.S. oil major, said it will produce 150,000 barrels of oil a day at Hebron using a massive concrete gravity-base structure like the one employed at the Hibernia project, which has been operating in the iceberg-prone region since the late 1990s.

First production is scheduled for 2017.

The green light for Hebron, the fourth major offshore Newfoundland oil project, is a positive development for energy operations in harsh operating conditions in a week in which the industry came under intense fire for an accident in the Far North

http://business.financialpost.com/2013/0...llion-hebron-oil-field-off-newfoundland/

we are also strategic for the artic and the company I work for also does much in the Greenland oil exploration.

Also there is a lot of IT for deep sea exploration and such here, the Marine institute as well trains the specialists and Memorial University's engeneering school etc.

Also our government is not stupid, there are many clauses that a lot of the work has to come from NL and that's where the offices want to be.

The industry it'self is very developed established here due to the start in oil years ago with Hibernia etc.

[q12]

Shell pleased with early seismic data

chronicleherald.ca

September 2, 2013 - 7:10am BY SELENA ROSS STAFF REPORTER

The season for seismic exploration of the Shelburne Basin has ended, and it was a good one, says Shell Canada Ltd.

“The initial indications is that the data we’re seeing looks really good,” said company spokesman Larry Lalonde.

“We're quite excited about what we are seeing.”

Read more here: http://thechronicleherald.ca/business/1151573-shell-pleased-with-early-seismic-data

[DigitalNinja]

8 Billion barrels of oil, and 120 trillion cubic feet of natural gas?!

That's quite a bit. Hopefully this data can help fuel Nova Scotia's economy for a while!

[ILoveHalifax]

Originally Posted by DigitalNinja

8 Billion barrels of oil, and 120 trillion cubic feet of natural gas?!

That's quite a bit. Hopefully this data can help fuel Nova Scotia's economy for a while!

I am sure our government will spend every dollar on all kinds of wasteful programs. It would be great to reduce our debt, to eliminate interest payments.

[scooby074]

Originally Posted by ILoveHalifax

I am sure our government will spend every dollar on all kinds of wasteful programs. It would be great to reduce our debt, to eliminate interest payments.

Yep. We should keep vote buying politicians grubby hands off it!

[xanaxanax]

A call for exploration bids on four more parcels in Nova Scotian waters were put out. I think its fair to think the bids going to be in the billion $ range for these parcels http://www.cbc.ca/news/canada/nova-scoti...ing-accepted-for-scotian-slope-1.2632286

[halifaxboyns]

It's a bit premature to be assuming that - considering a few times they put out the bids they got none. Let's hope for the best though!

[someone123]

The value depends hugely on the geology of the parcels. Some are worth $1B and others are not even worth exploring.

Not directly related, but I wonder if the problems in the Ukraine will increase the level of interest in NS energy projects like the LNG terminal. The EU's reliance on Russian energy imports puts them in an undesirable position.

[xanaxanax]

I was just thinking a standard might have been set by BP and two of the parcels are right beside a large oil exploration in Newfoundland waters

[Colin May]

Originally Posted by xanaxanax

A call for exploration bids on four more parcels in Nova Scotian waters were put out. I think its fair to think the bids going to be in the billion $ range for these parcels http://www.cbc.ca/news/canada/nova-scoti...ing-accepted-for-scotian-slope-1.2632286

They are looking for structures similar to those found in deep water plays in the Gulf of Mexico.
Ni PIP money these days and therefore you won't see rigs in moose pasture.
All the Keystone and oilsands haters will be in opposition if we get to the point where are rig is chartered.
What does Megan Leslie think ?
On a seperate subject : could Irving build some of the new railcars required for transporting oil ? Easy to build and a nice project to keep people busy.

[Ziobrop]

Originally Posted by Colin May

They are looking for structures similar to those found in deep water plays in the Gulf of Mexico.
Ni PIP money these days and therefore you won't see rigs in moose pasture.
All the Keystone and oilsands haters will be in opposition if we get to the point where are rig is chartered.
What does Megan Leslie think ?
On a seperate subject : could Irving build some of the new railcars required for transporting oil ? Easy to build and a nice project to keep people busy.

My understanding is that the full bid price is paid to the government, and then the exploration contracts are paid from there. Unspent bid money goes to the government, as does an annual admin fee. Drilling is covered as an exploration expense - this isn't all seismic money, so i would expect at least a few rigs in the next few years (All the seismic activity this year and last are in the 2012 parcels, there were no bids on the 2013 parcels)

Could Irving build railcars? probably, though I'm not sure they have a facility that could do it in quantity. There is a Rail services company in moncton that does rebuilds, and after factory mods that could expand..

Im pretty sure the big players arnt dropping a Billion + per parcel unless they are pretty confident upfront that there is potentially something good there.

[q12]

N.S. Government Welcomes New Offshore Interest
Energy
November 10, 2014 3:00 PM

Government is pleased to welcome Hess Corporation, BP
Canada's new partner in its deepwater project in Nova Scotia's
offshore.

BP Canada remains the operator of this project, with Hess
acquiring a 40 per cent interest in the billion-dollar work
commitment.

Energy Minister Andrew Younger says he welcomes this
investment and continued interest in Nova Scotia's offshore.

In 2012, BP was the successful bidder for four parcels
covering an area of almost 14,000 square kilometres off Nova
Scotia. BP plans to drill its first exploratory well in the
second half of 2017.

http://novascotia.ca/news/release/?id=20141110003