NL-Outsidethebox [confederation]

From VOCM

ExxonMobil Backs Out on Promise
July 12, 2006

Premier Danny Williams says ExxonMobil has reneged on its commitment to allow the province to audit the company's books on Hibernia. Williams says in August of last year ExxonMobil officials stated that the Hibernia project was not meeting expectations and agreed to an independent auditor, which would be chosen by government. The premier says now the company has reversed their decision and refused access to their financial documents. The auditors, Navigant Consulting Inc, have put together some information and Williams says it's clear that ExxonMobil has made substantial profits from Hibernia...906 million dollars last year alone. Williams says so far this year the Hibernia partners have made over 2 billion dollars. He says since ExxonMobil is doing so well, it makes sense that the province would want a bigger chunk of revenues from Hebron-Ben Nevis. The province has received 587 million dollars from Hibernia since 1997. Williams says he has written the Prime Minister on the matter since the federal government is also a partner on the Hibernia project.

Some links I have on the Hebron Ben-Never project whether good bad or indifferent.
http://www.theglobeandmail.com/servlet/story/LAC.20060417.REXXON17/TPStory/Business
http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1145310632487&call_pageid=968332188492&col=968793972154&t=TS_Home
http://www.thetelegram.com/news.aspx?storyID=48661
http://www.truthonthemarket.com/2006/04/13/so-much-for-disclosure-of-executive-pay
http://en.chinabroadcast.cn/2600/2005-8-5/116@263847.htm
http://www-crewes.geo.ucalgary.ca/Conference-abstracts/2004/SEG/Royle_SEG_2004.pdf
http://www.iht.com/articles/2006/04/16/business/exxon.php
http://www.aims.ca/inthemedia.asp?typeID=4&id=1339&fd=0&p=1
http://www.contracostatimes.com/mld/cctimes/14415315.htm
http://www.vivelecanada.ca/article.php/20060422185127259
http://www.vivelecanada.ca/article.php/20060422185127259
http://www.ganderbeacon.ca/index.cfm?iid=1283&sid=9144
http://www.kristv.com/Global/story.asp?S=4812116
http://www.tradingmarkets.com/tm.site/news/TOP%20STORY/239423/
http://www.nashuatelegraph.com/apps/pbcs.dll/article?AID=/20060430/COLUMNISTS24/104300179/-1/OPINION01
http://www.truthorfiction.com/rumors/e/exxon-mobil-boycott.htm
http://moneycentral.msn.com/content/P149921.asp
http://www.intsok.no/PHP/index.php?id=2993
http://www-crewes.geo.ucalgary.ca/Conference-abstracts/2004/CSEG/Royle_CSEG_2004.pdf
http://www.evworld.com/view.cfm?section=article&storyid=1030
http://www.vocm.com/news-info.asp?id=12139
http://www.nytimes.com/2006/06/14/business/worldbusiness/14oil.html?pagewanted=1&_r=1
http://www.noianet.com/
http://www.cbc.ca/nl/story/nf-williams-hebron-20060621.html
http://freenewfoundlandlabrador.blogspot.com/2006/06/newfoundland-and-labradors-hugo-chavez.html
http://thechronicleherald.ca/Business/511741.html
http://www.cbc.ca/canada/newfoundland-labrador/story/2006/04/03/nf-hebron-shelved-20060403.html
http://www.vocm.com/news-info.asp?id=13089

What really gets me is our total and unmitigated lack of control we have over our own resources and as a result destiny. The Federallies have their fingers in all of our Pies. Either through the clawing back of Non-Renewable resouce revenues through the D-equalization formula, out right control as with the Marine Atlantic which directly impacts on our economy, Fishery Quota allocation, Refusing to sign onto a Un call to ban Destructive Fishing practices, partneship control with the Hebron Ben-Nevis not siding with our Premier that we should institute a Fallow field law not unlike Alberta unilaterally did with their use it or lose it in 3 years. Mean while Hebron Ben-Nevis has been discovered for 25 years and is still in a state of denial to the people of NL. Ottawa refusing to force Quebec to allow the wheeling of power from the Upper Churchill through Quebec with a National Power corridor like they did in the three of the prairie provinces for a gas pipeline. Just as well in hind sight we need the power here in our province if we are ever to advance anyway.

Update:
Excerpt from Provincial Governments press Release.
http://www.releases.gov.nl.ca/releases/2006/exec/0712n01.htm

Some of the preliminary work done by Navigant on Hibernia to date indicates that:
# Operating revenues have increased approximately six times over official projections from $1.692 billion to $10.070 billion;
# Reserves have gone from 525 million barrels to 1.244 billion barrels;
# Gross revenues have increased to $19.9 billion, up from $14.6 billion;
# Production has nearly doubled;
# Capital cost is eight per cent less than projected;
# Operating cost is 57 per cent or $2.4 billion less than projected;
# Field life has gone from 18 years to approximately 30 years;
# Price of oil is up;
# Exchange rate is up;
# Inflation is less than expected;
# Royalty return has averaged less than five per cent to government after deduction of all project capital and operating costs and indexation (including federal grants of approximately $1 billion);
# In 2005 alone, partners netted $2.744 billion, with ExxonMobil receiving $906 million and the Government of Canada receiving $1.097 billion;
# Newfoundland and Labrador total cumulative royalties to date on the project have been $587 million since first oil in 1997.

"The time has come for these oil and gas companies to start sharing more of the tremendous financial benefits from our province’s resources," added Premier Williams. "Indeed, the province has benefited from our oil and gas industry, but it is clear from the preliminary work we have done that our share is a mere pittance compared to that of the companies. In these times of extremely high oil prices where consumers are bearing the burden and companies are taking in exorbitant profits, the time has come for new arrangements for projects on a go-forward basis. This clearly includes the Hebron development."