24 April 2007

Raude heads south

Having finished at Great Barrisway F-66 in the Orphan basin, the drill rig Eirik Raude is off to the Gulf of Mexico to complete a drilling program there on behalf of ExxonMobil.

Before leaving Newfoundland waters, the rig will stop at Marystown where it will undergo inspections and recertification, a process required for drill rigs every five years.

The Eirik Raude is likely to return to the Orphan Basin in 2008 or 2009 to continue exploration. The Great Barrisway hole was drilled in 2,350 metres of water, deeper than any other well drilled so far offshore Newfoundland and Labrador.

Initial estimates were that the exploration well would cost $140 million based on an estimated four months drilling. As completed, the well took seven months.

On top of the harsh ocean environment offshore Newfoundland, the water depth in the Orphan Basin calls for cutting edge technology. Pressures at the depths involved can be as much as 200 times the atmospheric pressure at the ocean surface.

Great Barrisway F-66's water depth rivals those in the Gulf of Mexico. Chevron's Jack 2 field in the Gulf of Mexico was discovered at a water depth of 2100 metres and 6100 metres below the sea floor.
But drilling to such depths provides many daunting engineering challenges.

Such equipment, for example, must be built to handle tremendous weight.

"The way the drilling process works is that you put sections of pipe together one at a time as you run [the pipe] through the water and down into the earth," Hadden said. [Steve Hadden, senior vice president of exploration and production at Devon Energy in Oklahoma City, quoted in the National Geographic story linked above.]

"You keep adding to the drill string until you reach the total depth of the well. So [in this case] you've got a 30,000-foot-long [9,144-meter-long] string of pipe hanging off a floating rig," he added.

"You can imagine the weight requirements, and you have to have the ability to lift it to the surface to change the drill bit."

Twenty thousand feet (6,096 meters) of the large diameter pipe that encases the drill hole tops the scales at over a million pounds (453,000 kilograms).

The enormous pressures found in deep wells are another major hazard.

Too much pressure can make it difficult to control the drill bit. Or the pressure could collapse the hole altogether.

Drillers must therefore use seismic readings while drilling to predict how high pressures will be at future depths in order to keep the hole viable.

Danny and John get along well

From the Tuesday National Post, this article on the strong, positive relationship between Premier Danny Williams and Husky Energy's John Lau.
At Husky's annual meeting last week, for example, the Hong Kong-born accountant gushed that the premier has been "very helpful" to Husky and that his company, in return, is eager to "work with the government and share the upside."
The relationship between the Premier and the oil man stands out in light of other stories that there is tension between the Premier and the industry.
When asked about the secret of his relationship with Mr. Williams, Mr. Lau said Husky and the province are so transparent with each other it's resulted in a level of trust that is unusual "between a corporation and the government."

"We understand what the government wants, and the government understands what we want. We have no hidden agenda," Mr. Lau said, giving credit to his team in the province, led by East Coast vice-president Ruud Zoon.

Husky would not be averse to having the government as an equity partner as long as it doesn't affect its bottom line, Mr. Lau added.
The real clue to what makes this relationship work actually comes later in the piece. it has to do with the individual styles of the two men.
Some argue it's also a matter of style. Despite their vastly different backgrounds, the two leaders have kindred spirits: both see themselves as outsiders who don't get enough recognition, are highly successful, built organizations in their own image, are hands-own and hard to work for.
Fundamentally, though, Husky Energy is following a pretty standard approach to any relationship: the company is trying to find common ground, bearing in mind that whatever it might consider, including an equity position for the province, is governed by the corporate bottom line.

There are strong signals that Danny Williams is looking to change the perception of his policies if not the substance of the way he approaches relationships. In the confrontation with the federal government over Equalization, Williams has repeatedly stated he is not seeking confrontation for the sake of having a racket. He said much the same thing over the weekend following a meeting with federal Liberal leader Stephane Dion.

Ultimately, that's both factually accurate - he isn't really fighting for the sake of fighting - and a sign that Williams understands what is needed to foster mutually beneficial relationships. As Michael Harris said of Brian Peckford a quarter century ago, "dogma is no substitute for dialogue, and compromise no synonym for weakness."

23 April 2007

Danny loves Loyola, Update

A video featuring Danny Williams supporting Loyola Hearn in the 1989 provincial Progressive Conservative Party leadership contest is picking up more attention with each passing day.

The video is posted on youtube.com.

When Bond Papers posted the link on Friday, the total viewers was 91. That number hit 241 by mid-day Monday. The video was featured on CBC's Here and Now supperhour news show on Monday evening and as of 10: 45 Pm Monday night the hit counter had reached 369.

The politics of outrage runs aground

From today's Globe?

Nope.

Try February 23, 1983.

Following is a Michael Harris piece that originally appeared in the Globe and Mail in the aftermath of the first court case on offshore ownership (the one the nationalists like to forget).

The odd thing is that it doesn't take much adjustment to have this story apply equally well today. A feisty Premier, given to fighting anyone, anywhere, anytime in the best interests of Newfoundland and Labrador, and yet finding himself coming up short.

So to speak.

So for your reading enjoyment is this blast from the past, titled in the original as this post. Don't be confused by some of the references, by the way. Almost a quarter of a century ago, Jim Hodder was a Liberal member of the legislature. Hodder crossed the floor not long after this article appeared. He's like Tom Rideout, at least in that respect.

Leo Barry went on to lead the Liberal Party and was later appointed a justice of the Supreme Court. Brian Peckford is in British Columbia advising people out there about starting an oil and gas industry.

______________________________

"One cannot reasonably demand that discussions take place on the basis that it would constitute only additional obligations for one party and only benefits for the other."

- Rene Levesque to Brian Peckford on the
Upper Churchill Power question,
April 29, 1980.
There is a caveat to Rene Levesque's otherwise self-evident assessment of what constitutes meaningful negotiations - it is not applicable when dealing with Newfoundland.

For three years now, Premier Brian Peckford has practiced the politics of outrage on a range of arguably outrageous disputes in which Newfoundland has become embroiled.

In the two most celebrated quarrels - with Quebec over Labrador hydro-power and Ottawa over offshore resources - his strategy has been identical. Mr. Peckford has developed a quasi-moral position and then gone on to defend it with messianic zeal. ''Pre-conditions'' has become the buzz word when negotiating with Newfoundland. And if the notion of preconditions precluded meaningful negotiations, that was a problem for the other guy. Newfoundland would soldier on and eventually triumph because Newfoundland was in the right.

As political strategy, the approach has been a howling success - so far. Newfoundlanders unabashedly admire their battling Premier. So much so that the opposition Liberals were almost wiped out in last year's emotional provincial election. Securely wrapped in the provincial flag, Mr. Peckford rules his caucus with an iron hand and the House of Assembly with an iron tongue, much as Joey Smallwood did in his political prime.

But as a means of realizing Mr. Peckford's stated public policy goals, the feisty, inflexible approach has been an abject failure. The Upper Churchill Power Contract remains in full, ruinous force, depriving Newfoundland of $750-million a year to which the province feels entitled. And the vast oil resources off the province's southeast coast remain undeveloped.

Worse, politics as the art of being right has shifted both disputes to a forum where politicians are powerless to influence the outcome - the courts.

The stark reality of what that can mean was demonstrated last week when the Newfoundland Court of Appeal ruled that Ottawa owns resources on the continental shelf off Newfoundland. In a single stroke, the Newfoundland Petroleum Directorate became a legal fiction, the province's oil and gas regulations lost their force, and Mr. Peckford's bargaining position with Ottawa suffered a devastating blow. Ironically, Mr. Peckford must now appeal for his justice to the very court he has consistently described as the tribunal of central Canadians, the Supreme Court of Canada.

Predictably, the political opposition has argued that such epic blundering with the province's long-term future requires the supreme penalty - in the wake of last week's decision, Liberal MHA James Hodder has demanded Mr. Peckford's resignation. But the reaction of fellow Tories, particularly Newfoundland's former energy minister Leo Barry, is of far greater significance.

Mr. Barry has become the first Conservative to publicly criticize Brian Peckford since he became Premier in 1979. Two years ago, the Yale-trained lawyer and author of Newfoundland's oil and gas regulations resigned from the Peckford Cabinet over differences with the Premier on how offshore negotiations with Ottawa should be conducted. Now Mr. Barry is pointing out, ever so delicately, that the ownership question should never have been referred to the Newfoundland court in the first place and that the Newfoundland Government acted ''precipitously'' in so doing.

What makes Mr. Barry's comments all the more significant is the fact that he espouses the same goals as the Premier. Like Mr. Peckford, he too believes Newfoundland is entitled to ownership of offshore resources. But unlike the Premier, his formula for achieving ownership hinged on keeping negotiations with the federal side going and, if a deal couldn't be struck, waiting for a change of governments in Ottawa.

His reasoning was simple. Having already offered Newfoundland 100 per cent ownership of offshore resources in 1980, a Conservative government in Ottawa would have a hard time reneging on that offer if returned to power at some time in the future.

Against the backdrop of his defeat in the Newfoundland courts, and criticism from an prestigious member of his own caucus, Brian Peckford continues to talk tough. But his words are less important now than what happens in the Supreme Court of Canada in the coming weeks.

If the high court upholds the position taken by the provincial Supreme Court, as many legal observers believe it will, the Rowdyman of Newfoundland public life will have learned a harsh political lesson: dogma is no substitute for dialogue, and compromise no synonym for weakness.

Promise made, Promise MIA

From the much bally-hooed Blue Book from 2003:

* Approximately 40% of all government expenditures goes towards salaries and employee benefits. Over the next five years, approximately 25% of the public service will be eligible for retirement. A Progressive Conservative government will use this five-year period to reduce the size of the public sector through attrition.

...

* Strengthening the Public Tender Act. All government departments and agencies will be required to comply with a strengthened Public Tender Act with an aim to strengthening competition and eliminating costly lawsuits that occur as a result of violations to the Act.

...

* A Progressive Conservative government will restore the House of Assembly to it rightful place as the "People's House". Our aim is to create a system of government in which power is shared with the legislature and the people, instead of being concentrated in the office of the premier and cabinet. [Emphasis added.]

...

* The appointment of a special committee of the legislature that will ensure proper scrutiny and public discussion of federal proposals in areas of provincial concern.

And speaking of electoral reform...

There's the case of Rob Anders, as viewed by the National Post's Don Mills.

The eastern banana republic

When the cabinet seizes control of what is supposed to be a parliamentary democracy, you get an announcement that the government is appointing a "staunch Tory" to be chief electoral officer.

The root of the current problem goes back to the House of Assembly scandal when the Premier, not the Speaker, seized control of the issue and started to manage the whole thing from the Premier's Office. Contrary to his public protestations, the Premier has been running the show ever since.

In the current situation, if for some reason the House doesn't approve him, the staunch Tory will continue to serve in an acting capacity.

Why wasn't this supposedly non-partisan position recruited through a non-partisan process through the House of Assembly?

And by what authority will the "staunch Tory" get to keep his job even if the legislature finds him unsuitable?

Chuck Furey's appointment was bad enough.

This announcement completely destroys any pretense that the government is accountable to the House of Assembly in any manner whatsoever.

What's say we just skip the fall election and save a bundle of cash using the Yeltsin solution.

After all, when a "staunch Tory" is appointed by a Tory government to a supposedly non-partisan position overseeing an election, it really doesn't take much imagination to figure out that the whole democracy thing has become a sick joke.

The Northern Strategy for Labrador, dissected

With vigor, here and here.

22 April 2007

NS improves offshore competitiveness

The Canada-Nova Scotia Offshore Petroleum Board has introduced a new exploration license at a lower cost but with a shorter term.

An improbable feast

Geoff Meeker has an interesting post on the difference between the food pictured in commercial fast food advertising and what you actually get at the Arby's, Wendy's or PKF.

As Geoff points out, advertisers use food dressers to primp, spritz and do just about anything else to make the food look pretty much the opposite of what you get when you open the wrapper.

Of course, that just leads one to thinking of what another dresser has accomplished with her demonic arts, right.


Then, there's what you get when you open the greasy paper wrapper, left.

Dion: a man of integrity

From Canadian Press, via the Globe:
Liberal Leader Stéphane Dion is pledging to foster a relationship of co-operation with Newfoundland and Labrador Premier Danny Williams, who has a history of high-profile feuds with Ottawa.

Mr. Dion and Mr. Williams met Saturday in St. John's and discussed several issues, including equalization and the province's fisheries, after which Mr. Williams said Mr. Dion is a man he can trust.

The pair said they hadn't intended to reach any formal agreements, but rather open a dialogue that would continue if Mr. Dion is elected prime minister.

"We conclude with the most valuable gain that two human beings may have — mutual trust," Mr. Dion told a news conference following the meeting.

21 April 2007

A veritable GPS to the butts of the politically powerful

From the Telegram, Bill Rowe demonstrates once again that he is good at nothing else if not sucking up to autocrats.

Hence his successful service in both the Smallwood and Williams administrations, where he probably spoke truth to power daily using the vocabulary worthy of a Rhodes scholar:

"Yes, Mr. Premier, I do believe the obscurating clouds have now been successfully dissipated and the glorious solar orb is now once more emitting its miraculous benefit at full luminosity safe ensconced from between your nether cheeks".

Rowe endorses the idea of Sir Danny the Good leading a band of seven virtuous sons (and daughters) of The Cause on a Quest for the Holy Grail of More Hand-outs from Ottawa.

Rowe nominates Danny for the lead role. He genuflects so strenuously in doing so (even in writing) that one fears Rowe will poke out an eye or two if he does not calm down.

Andy Wells is cast as, one expects, Sir Lancelot. In true suck-arse fashion, Rowe credits Andy Wells - the other amigo in the little band - for calling this band the Bloc Newfoundland and Labrador. Since Rowe long since abandoned the party he once led - up to a sorry encounter with some brown envelopes - he likely forgets that credit for inventing the most ludicrous idea in Newfoundland political history since A.B. Morine as minister of justice goes to:

Roger Grimes. A Liberal leader who  - unlike Rowe - can say more of his political career than Brian Tobin used to hand out envelopes for him.

Rowe himself?

Likely Bedevere from the Monty Python incarnation of the fairy tale: "and that my Liege is how we know the Earth to be banana-shaped...".

That's about the only way one can explain not only the farcical Bloc but lines like this, which Rowe types with all earnestness:
It would be a double whammy. One, Danny could punish Harper for his treachery by helping to deny him a majority government. Two, like Quebec, we’d have a solid group of MPs pulling on the same oar, dedicated solely to this province’s best interests.
Deny Harper a majority government.

Right.

Even the much-vaunted Bloc, which for all the praise it gets from people like Rowe has produced exactly what for Quebec from the Government of Canada...

Zip?

Nada?

Bupkis?

And outside of a few chuckles, that - s.f.a. - is what Bill's latest column is worth.

If the Bloc's 57 or 60 or whatever number they've achieved cannot produce one ounce of influence on anyone outside Quebec, then there is simply no means by which seven could do more.

Power rests in the cabinet, and particularly in the first minister's office. The Blocheads will never see the inside of either, and that is why a Bloc, whether from Quebec, Prince Edward Island or Dannystan would be as useless as, well, writing a book commentary without having read the book.

How odd that Rowe, who has shown himself to be a reliable compass needle for local political butt-lickers, could not figure out the location of the same power source in Ottawa.

Bill's needle is off on this Bloc one.

But, as it did 40 years ago, it still faithfully indicates the motherlode of Newfoundland political magnetism.

Fed changes to Accord cause worry

From the Saturday Telegram, Rob Antle's story on federal changes to the Atlantic Accord (1985). Antle quotes Ron Penney, a member of the provincial negotiating team 20-odd years ago.

That's Penney, standing second from right in the photo.


“If they’re going to unilaterally change a provision of the Atlantic Accord with respect to the equalization phase-out, then what’s to prevent the federal government from changing other fundamental provisions of the Atlantic Accord?” Penney said.


And like you haven't heard this argument before.

20 April 2007

Danny loves Loyola

This 1989 clip from CBC coverage of the 1989 provincial Tory leadership convention shows Danny Williams speaking with Deanne Fleet about, of all things, the prospects of Loyola Hearn winning the convention. [The guy who posted it disabled embedding.]

Yes.

The Danny Williams.

Backing the Loyola Hearn.

With all his heart and soul.

If memory serves, one of the commentators - Greg Stamp - wound up working for the eventual winner Tom Rideout.

He asks Williams if he had any regrets at not running. In the pre-campaign days, Williams had criticized the nomination process saying the whole thing wasn't as open as it should have been, in his view. There was some apparent friction between Williams and Rideout.

How times have changed in so many ways.

Too damn sexy

This didn't take long for someone to pump out.

Personally, I was thinking more Marie Antoinette, but it still works.

The guy who threw this together should have really played up Sandra Buckler's comments about the stylist being nice, carrying bags and holding open doors. What a patronising load of rubbish.

Husky to expand Terra Nova presence

From Oil Week:
Husky Energy Ltd. (TSX:HSE) plans an active year of expansions and acquisitions, from bumping up its stake in the offshore Terra Nova project, to increasing upgrader and refinery capacity, the oil and gas producer said Thursday.

Husky, which held its annual shareholders meeting in Calgary on Thursday, said it would be growing its ownership stake in the offshore Newfoundland project by increasing its working interest in developing fields, rather than buying other partners‘ portions.

Excerpts of Charest's instructions to the new cabinet

From le soleil, something for the provincial government to ponder (once they've had it translated):

9 - M. le Ministre des Ressources naturelles et de la Faune :

Vous aiderez le secteur forestier à sortir renforcé de la crise actuelle. Après l'annonce de la construction du projet hydroélectrique Eastmain 1-A Rupert, vous mettrez en chantier le projet La Romaine, sur le Basse-Nord. Vous poursuivrez le développement des énergies vertes et alternatives dont l'éolien dans le respect des populations locales. Et vous agirez de manière à ce que l'essor du secteur minier génère le maximum de retombées et d'emplois dans nos régions. En plus de ces fonctions, vous serez ministre responsable des régions du Bas-Saint-Laurent, de la Côte-Nord et du Saguenay-Lac-Saint-Jean.

10 - M. le ministre du Développement économique, de l'Innovation et de l'Exportation, ministre responsable de l'Accord sur le commerce intérieur et ministre du Tourisme : Votre priorité est la prospérité du Québec. Vous augmenterez la création d'emplois dans les régions. Vous ferez en sorte que le secteur manufacturier puisse mieux s'adapter à la concurrence internationale. Vos maîtres mots seront "productivité" et "innovation". Le tourisme est un secteur économique de première importance et un levier de diversification pour les régions. Vous ferez la promotion de la destination Québec en toute saison. En plus de ces fonctions, vous serez ministre responsable de la métropole. Notre gouvernement travaillera en étroite collaboration avec les leaders politiques, économiques et sociaux de Montréal. (...)

Hearn hits back

Federal fish minister Loyola Hearn delivered a luncheon speech on Friday in which he took a few strips off the provincial government, in return for the strips Premier Danny Williams took off Hearn's hide a few days ago.

Hearn, seen at right at a function some months ago, seemed to be either pointing fingers at the Premier or, perhaps, inviting the feisty Mr. Williams to see what happens when he pulled Hearn's finger.

There is nothing uglier than a fight within a family.

Regular Bond readers will recall the cat fight last year, left [not exactly as illustrated], over Premier's scheme to install Andy Wells as head of the offshore regulatory board. That, too, had all the earmarks of a fight a la Crystal and Alexis.

Incidentally, Hearn's remarks as quoted by the CBC story kinked above as well as other reports on the speech, will seem familiar to Bond Papers' readers. Several federal departments are regular Bond readers but that is likely nothing more than a coincidence.

One thing is certain from today: John Crosbie had some good advice for both Williams and Hearn. Premier Williams should consider Mr. Hearn a potential asset in trying to deal with the current dispute on a diplomatic level. Crosbie knows exactly how much can be accomplished by a federal regional minister on behalf of the province.

He's done it before throughout disputes between St. John's and Ottawa during both the Brian Peckford and Clyde Wells administrations. The relationship between a premier and a regional minister doesn't always have to be amicable.

Heavens knows that Wells and Crosbie often had a few choice words for each other both publicly and - to tell tales out of school - in private. Let's just say that soundproof doors aren't quite so soundproof when two strong-willed politicians are involved in what can euphemistically be termed a difference of opinion. Through it all, though, they still met and they still took each others' telephone calls.

Can the same be said of the current situation?

Maybe Crosbie has another clue to a fundamental change that needs to happen.

If not, then Hearn's comment today on fighting it out in an election might be the only way to resolve matters. Perhaps Mr. Williams would consider running as an independent Progressive Conservative in the next federal election, potentially leading - as did Lucien Bouchard - a nationalist bloquiste party.

Williams could even take Hearn on directly, that is if Hearn will be running next time out. As much as your humble e-scribbler would not like to see that blood letting on his own front lawn, that contest might just get all the testosterone out of the air and let people start building productive relationships again.

No need for Canadian Tire to stock up on mounds of absorbent pads just yet, though. Current word from Ottawa is that there won't be an election until sometime in 2008.

In the meantime, Newfoundlanders and Labradorians are likely to hear the family next door in a knock-down, drag-out on the front lawn for months to come.

*sigh*

-30-

Your serial government at work

There's a northern "strategic plan" for Labrador.

Labrador is north, so that bit is redundant.

Well, unless the plan is for northern Labrador.

Anyway...

As the news release notes, this "plan" fulfils a commitment from the 2005 throne speech. That means it has taken two full years to generate this document.

That's a pretty long time, especially considering that things like a wind power project and Lower Churchill development have already started in the case of the latter, or been postponed (the former) while this plan was being developed.

So what's the thrust of the document? Well, there is the obligatory commitment to sweeping goals of making things "better". There is plenty of cash committed here and that likely is the real purpose of the document: spending in an election year.

Other than that, most of the initiatives in the plan are already in train or are the sorts of things that one might expect, like building schools where needed and improving access to health care.

There is a curious one under natural resource development:
Support Newfoundland and Labrador Hydro to conduct an ACOA funded assessment of technical options for natural gas developments off Labrador...
If Newfoundland and Labrador Hydro is going to get into oil and gas development, then that could be a good thing. It could be - conditional language - since we don't know what Hydro's role will look like or what the financial implications are.

In this specific case, the technical options for developing gas offshore Labrador could be explored and likely would be explored - if they have not been explored already - by the license holders.

It is curious that the Hydro corporation will be studying these options. But it is even more curious that studying the options requires federal funding through the Atlantic Canada Opportunities Agency (ACOA). Surely Hydro has enough retained earnings to fund the study.

Beyond that, though and aside from all the good things to happen in Labrador, this document bears all the marks of something completed over two years ago. Note the number of phrases which project ore shipments and employments levels...for 2006. In early 2007, those projections should be easy since the year is past. Hindsight is always more accurate than foresight.

This is your serial government at work.

Not only does it take two years to complete a "strategy", but the strategy contains no concrete measurable goals to judge success. Major strategic decisions on everything from a new hydroelectric project, delay of a wind power project and decisions on new mine developments in western Labrador are all taken before the "strategy" is in place. On top of that, document is actually held up through the bureaucratic process to the point where it is announced fully two years after it started.

Surely it would have been nice to develop an actual strategy, one that lays out the guiding principles for its various components like health care and resource development.

Surely it would have been nice to have those principles before decisions are made.

-30-

The Imperial Prime Minister

Apparently requires a psychic, luggage-carrying dresser.

Steve joins Tsarina Alexander, Nancy Reagan, Marie Antoinette and others not actually holding power yet spending public money on nonsense.

Let them eat cake, indeed.