News Release
Office of the Official Opposition

   

 

Parsons questions Premier's strategy on advancing Hebron development and stabilizing oil industry
August 4, 2006

Opposition Critic for Natural Resources and MHA for the District of Burgeo & La Poile, Kelvin Parsons, says he is concerned with the premier’s strategy to rely solely on the federal government’s support for fallow field legislation. Parsons feels this will hamper other efforts to advance development of the Hebron-Ben Nevis oil field.

The Liberal MHA was reacting to the premier’s recently expressed optimism that, with the support garnered at the Premiers’ Council on the Federation, he is now in a better position to make his case to Ottawa on his fallow field proposal which would impose a use-it-or-lose- it condition on the development of the province’s offshore oil fields. Prime Minister Harper has previously rejected getting involved with the fight over the Hebron oil field.

"The premier is being overly optimistic if he thinks he can change the mind of the prime minister on the Hebron file. The prime minister has all but told the premier he will not touch this issue with a ten foot pole," says Parsons. "What is worrisome is that while the premier spends time chasing this option other efforts to revive the talks between ExxonMobile and the provincial government will not be pursued.

"The premier has to appreciate that time is of the essence here and we are at a crunch time for the oil industry, the spin-off industries and the province as a whole. We have seen a drop in the real estate market, attributable to the fall-out from failed Hebron talks and just last week, the Scotiabank predicted that next year’s economic growth for our province will be negatively affected by the lack of any new oil projects on the horizon to boost the positive impact levered by the White Rose and Voisey’s Bay projects. Further, if labour negotiations are not resolved in a reasonable time on the Voisey’s Bay project, our economy will be even more acutely affected. Another outmigration spike will bleed us even further.

"There’s a sense that the premier has misplayed his hand, as echoed in a recent Globe and Mail article. I am once again encouraging the premier not to allow his need to appear tough for the sake of heightening the bravado get in the way of reaching a workable deal that benefits this province. In the next few years, production from the existing three fields will have peaked and then fall of sharply. It’s time the premier’s self-professed negotiations skills come to play on this critical deal, not relying on what appears to be a dead prospect."

Media Contact:
Kim Ploughman
Caucus Communications
Office of the Official Opposition
709-729-6427