Monday, December 3, 2012

CABOT MARTIN ON PERSPECTIVE AND RING FENCING



__________________________________
“The Dunderdale administration seems
 seriously out of touch with modern
 regulatory oversight requirements
and procedures. In today’s Western
democracies, governments do not
 get to stack terms of reference, pick
 the consultant and then call it an
independent analysis.”

Cabot Martin
The Telegram
Dec 03, 2012
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Policy guru and energy entrepreneur Cabot Martin’s opinion piece in today’s Telegram makes some interesting points about the lack of transparency surrounding the Muskrat Fall’s freight train.

Martin  challenges the parameters and assumptions made by government and their consultants related to the feasibility of developing the natural gas option. I agree with Cabot. The premise that an industry would be developed just to eliminate the existing oil burning generators at Holyrood facility is ludicrous. There are many export options available for our natural gas.

The technology, as P&P as pointed out before,  is evolving. LNG time is coming. Are we are putting all of our eggs in one basket based on old ideas, yet  global gas consumption is set to increase by more than a third between 2011 and 2030 (source: IEA)

What about Shell? Is this company crazy and out of touch, or a pioneer which is building technology that could be adapted in our offshore. 

They are expending billions constructing the world’s first floating liquefied natural gas facility (FLNG) in Korea. The intend to unleash the potential of natural gas from the depths of the Pacific and Indian Oceans. The Prelude FLNG facility will produce gas at sea, turn it into liquefied natural gas and then transfer it directly to the ships that will transport it to customers. 

Why are we not doing more to ignite the potential of LNG ? NALCOR was created with  a vision is to build a strong economic future for successive generations of Newfoundlanders and Labradorians

If the governments of Canada and Newfoundland had not created the incentives, partnered with oil companies to jump start the Newfoundland Offshore we might still be talking about reserves that can not be developed because the technology, markets and returns did not exist.

NLG is the key to global energy future?

1 comment:

Anonymous said...

Peter,

Can't agree more that natural gas is the the future. Twenty years ago Whiterose and Terra nova were but a pipe dream. Today, along with Hibernia the oil industry makes up the lions share of the provincial GDP!

Just like oil a few years ago, the potential of natural gas will be realized and it will benefit the province tremendously. I don't dispute the green value of muskrat falls but no matter how you slice it 7 billion divided by 500 thousand is a big number. Without a reliable export market the project is hell of an elephant for this province to eat!

Fact is a lot has changed in the gas market over the last couple of years. Seems that when you think about this is surely this is a case where you measure twice and cut once!!!

J