Bernard the roughneck revisited

[Hamloc]

I happened to catch a few minutes of the Roy Green show on the Corus radio network today. He was interviewing Bernard Hancock. I now see why the left is doing everything in their power to discredit him. I thought he was well spoken, seemed to be quite knowledgable on the topic and very realistic about the plight of energy workers. Those on the left that want oil left in the ground have yet to show me where future economic growth will come from and where the revenue to fund government will come from. We can certainly shut down the oil industry in Canada, I am sure there are many middle eastern and African companies that would love to ship the oil in on tankers to fill the void. 25% of GHG emissions in Canada(stats can 2014 data) come from on road transportation, for the near term diesel and gas power this transportation. No doubt Chuck2 will paste an article telling me how fast electric cars and highway tractors will take over but I prefer to live in the real world. Anyway I for one appreciate Bernard the roughneck's efforts. Have a good day and I hope it is dryer where you are than it is in Central Alberta.

[bucket]

Railways were probaby the cleanest form to move bulk commodities...which government ...not that it matters ....allowed rail consolidation and then allowed a trucking industry to be created that actually made the problem worse. ...


We should have been looking for ways to increase rail traffic...and should still be instead Canada wants to clean up the world's pollution. ....it's a pipe dream and a wealth destroyer....

[Guest]

they won't understand until the lack of transfer payments hits them right square in the side of the head . hears a thought , maybe quebec will have to send some back to the west ?

[sumdumguy]

They will just borrow more cheap money.

[blackpowder]

There are simply not enough hungry, cold people in Canada. Yet.
Like there was in China, and is in India, Africa, even parts of Soviet bloc.
Hell, 2/3 of the world wants what we have and will use any resource at their disposal to get it.
Can we "lead the way" for social license and maintain our standard of living??
Crap, the cattle industry will see an implosion over this thinking. Giving away industries that dont smell right in TO and Van.
Too many generations of overfed people leads to gross naivety.
All in the name of wealth redistribution now.
Rinse, wash, repeat. Screw it.

[sumdumguy]

Too bad our leaders can't figure out the fact that the rest of the world is doing everything they can to bring us down to their level. Brad Wall is the only guy who can see the writing on the Wall.

[chuckChuck]

I am still amazed at the way we in Canada manage resource development versus Norway with over a trillion dollars saved. Alberta had no foresight to put away some of their onetime oil and gas revenue for future generations to enjoy. Instead the economy goes into a tailspin because oil is at $40-$50. I think it is shameful mismanagement and poor planning.

Long term experienced farmers know not to plan on high grain prices for long periods. Commodities go up and down in value. Always have and always will. High prices and low interest rates attracted new investment and technology to produce oil and gas. The world is over producing oil and gas and prices have fallen. This is how the market is supposed to work isn't it?

Alot of posts on Agriville are bitchin about various politicians when the real cause of the downturn is the normal function of markets. Current environmental concerns, pipeline delays, carbon taxes, etc. currently, have very minimal impacts on world supply and demand.

As far as wealth redistribution is concerned, consumers paid very high prices for energy for several years and are still paying high prices. On a good size farm it would have been a substantial transfer of wealth to the oil companies and state producers like Saudia Arabia.

Norway made sure that all their citizens got their fair share of oil and gas revenues and helped stabilize the economy for future generations!

[chuckChuck]

Canada Competes
What Norway did with its oil and we didn’t

ESTHER HSIEH

Special to The Globe and Mail

Published Thursday, May 16, 2013 6:04AM EDT

Last updated Thursday, May 16, 2013 3:01PM EDT

When oil was discovered in the Norwegian continental shelf in 1969, Norway was very aware of the finite nature of petroleum, and didn’t waste any time legislating policies to manage the new-found resource in a way that would give Norwegians long-term wealth, benefit their entire society and make them competitive beyond just a commodities exporter.

“Norway got the basics right quite early on,” says John Calvert, a political science professor at Simon Fraser University. “They understood what this was about and they put in place public policy that they have benefited so much from.”

This is in contrast to Canada’s free-market approach, he contends, where our government is discouraged from long-term public planning, in favour of allowing the market to determine the pace and scope of development.

“I would argue quite strongly that the Norwegians have done a much better job of managing their [petroleum] resource,” Prof. Calvert says.

While No. 15 on the World Economic Forum’s global competitiveness rankings, Norway is ranked third out of all countries on its macroeconomic environment (up from fourth last year), “driven by windfall oil revenues combined with prudent fiscal management,” according to the Forum.

Before oil was discovered, the Act of 21 June 1963 was already in place for managing the Norwegian continental shelf. This legislation has since been updated several times, most recently in 1996, now considered Norway’s Petroleum Act, which includes protection for fisheries, communities and the environment.

In 1972, the government founded the precursor of Statoil ASA, an integrated petroleum company. (In 2012, Statoil dividends from government shares was $2.4-billion). In the same year, the Norwegian Petroleum Directorate was also established, a government administrative body that has the objective of “creating the greatest possible values for society from the oil and gas activities by means of prudent resource management.”

In 1990, the precursor of the Government Pension Fund – Global (GPFG), a sovereign wealth fund, was established for surplus oil revenues. Today the GPFG is worth more than $700-billion.

While there’s no question that Norway has done well from its oil and gas, unlike many resource-based nations, Norway has invested its petro dollars in such a way as to create and sustain other industries where it is also globally competitive.

The second largest export of Norway is supplies for the petroleum industry, points out Ole Anders Lindseth, the director general of the Ministry of Petroleum and Energy in Norway.

“So the oil and gas activities have rendered more than just revenue for the benefit of the future generations, but has also rendered employment, workplaces and highly skilled industries,” Mr. Lindseth says.

Maximizing the resource is also very important.

Because the government is highly invested, (oil profits are taxed at 78 per cent, and in 2011 tax revenues were $36-billion), it is as interested as oil companies, which want to maximize their profits, in extracting the maximum amount of hydrocarbons from the reservoirs. This has inspired technological advances such as parallel drilling, Mr. Lindseth says.

“The extraction rate in Norway is around 50 per cent, which is extremely high in the world average,” he adds.

Norway has also managed to largely avoid so-called Dutch disease (a decline in other exports due to a strong currency) for two reasons, Mr. Lindseth says. The GPFG wealth fund is largely invested outside Norway by legislation, and the annual maximum withdrawal is 4 per cent. Through these two measures, Norway has avoided hyper-inflation, and has been able to sustain its traditional industries.

In Norway, there’s no industry more traditional than fishing.

“As far back as the 12th century they were already exporting stock fish to places in Europe,” explains Rashid Sumaila, director of the Fisheries Economics Research Unit at the University of British Columbia Fisheries Centre.

Prof. Sumaila spent seven years studying economics in Norway and uses game theory to study fish stocks and ecosystems. Fish don’t heed international borders and his research shows how co-operative behaviour is economically beneficial.

“Ninety per cent of the fish stocks that Norway depends on are shared with other countries. It’s a country that has more co-operation and collaboration with other countries than any other country I know,” Prof. Sumaila says.

“That’s [partly] why they still have their cod and we’ve lost ours,” he adds, pointing out that not only are quotas and illegal fishing heavily monitored, policy in Norway is based on scientific evidence and consideration for the sustainability of the ecosystem as a whole.

Prof. Sumaila cites the recent changes to Canada’s Fisheries Act, as a counter-example: “To protect the habitat, you have to show a direct link between the habitat, the fish and the economy,” he says, adding, “That’s the kind of weakening that the Norwegians don’t do.”

Svein Jentoft is a professor in the faculty of Bioscience, Fisheries and Economics at the University of Tromso. He adds that Norway’s co-operative management style, particularly domestically, has been key to the continued success of the fisheries.

“The management system [for fish stock] is an outcome of the positive, constructive and trustful relationship between the industry on the one hand and the government on the other hand,” Prof. Jentoft says. “They have been able to agree on issues that you and many other countries haven’t been able to, largely because the government has listened to the fishermen.”

However, Prof. Jentoft isn’t on board with all of his government’s policies. He’s concerned about how the quota and licensing system is concentrating wealth and the impact that this will have on fishing communities.

He predicts that Norway’s wild stocks will remain healthy in the foreseeable future and that the aquaculture industry (fish farms), where Norwegians are world leaders, will continue to grow.

In 2009, Norway’s total fish and seafood export was $7.1-billion, $3.8-billion was in aquaculture. By 2011, Norwegian aquaculture exports grew to $4.9-billion. In Canada, total fish and seafood exports in 2011 were $3.6-billion, with approximately one-third from aquaculture.

Norway’s forests are another important natural resource, and its pulp-and-paper industry has many parallels to Canada’s. Both nations are heavy exporters of newsprint. With much less demand since the wide adoption of the Internet and competition from modern mills from emerging markets, both nations have suffered through down-sizing and mill closures over the past decade. Both have been looking for ways to adapt.

The Borregaard pulp and paper mill in Sarpsborg has become one of the world’s most advanced biorefineries. From wood, it creates four main products: specialty cellulose, lignosuphonates, vanillin and ethanol, along with 200 GWh a year of bioenergy.

“You have a diversified portfolio of products,” explains Karin Oyaas, research manager at the Paper and Fibre Research Institute in Trondheim. “The Borregaard mill uses all parts of the wood and they have a variety of products, so if one of the products is priced low for a few years, then maybe some of the other products are priced high.”

She feels this is a key change in direction for the industry in Norway. She doesn’t want to see the industry putting all of its eggs in one basket, as it did with newsprint.

Dr. Oyaas also thinks that rebranding the industry is key to its survival and success in Norway. The forestry industry doesn’t get the same kind of attention as the oil industry, nor does it have the high-tech image. But it is just as high-tech, and it has the bonus of being a renewable resource.

“You can make anything from the forest. You can make the same products that you can make from oil,” explains Dr. Oyaas.

[Retired]

Not only was our resources missmanaged then but now cimpanies are diclaring bankrupsy at an alarming rate and leaving the gov to cover rents,and orphan wells. I bet when all is in we will have gave our oil away for O net gain,that is other than the profits the oil bis left with. And I dont think even sask3 can pin this one on the NDs.

[grassfarmer]

I am still amazed at the way we in Canada manage resource development versus Norway with over a trillion dollars saved. Alberta had no foresight to put away some of their onetime oil and gas revenue for future generations to enjoy.

I guess "Bernard the roughneck" reflects pretty well the Alberta situation. Paid over $100k for working part of the year for a decade. Then instantly back living in his Mom's basement the day oil prices drop.
Blame the NDP.

[blackpowder]

Never been to Norway. Dont care.
Its their country. Heard its damn expensive with alot of rules and taxes. Too damn small for me.
Ive been an Albertan all my life and will continue to be one. Our governments pissed away the money because they are only an extension of ouselves. The economy here isnt in a tailspin by the way.
Some have pissed away their money. Nice thing about slowdowns all the chaff blows back home out of Alberta.
No self righteous twit on the internet would work patch for less than 100k a year. Besides if thats what theyre payin, take it. Wouldnt be a line layed in this country if some here had to do it.
Cost less too if we didnt have to be nice to all the *****s you have to hire these days.
Subtract taxes and child support from that 100k and see where your livin.
Wealth redistribution hurts the lower middle class the worst. Wait till there isnt one.
People who feel safer with walls built by govt should all move to Qbec. Its our Greece but at least theyd all be in one place. Then you can all freeze together.
Whats being talked about is laughable. Like a priest giving sex ed. Big New powerlines heading south with no power to send on em in 15 years.
Maybe Qbec too good for some. Go live in Norway.
Leave us the hell alone before it *** backfires.

[binthere]

our wells dont produce near what offshore norweigan wells pruduce by a long shot. also their oil is instantly in export position being off coast. while our oil and gas for the most part is land locked. it takes as much as forty wells more here to produce the same oil from one in norway. however having said that while i was drilling i worked with a directional driller from norway. even after discussing the two very different revenue schemes royalties versrus revenue taxation he said canadians were being shafted big time. their savings fund will reach a trillion dollars by 2020 despite the valve being shut by the suadis. we can not ever show the same.

[stonepicker]

Some forget about the 100's of billions that alberta has had to pay to quebec and ontario in transfer payments. Alberta is a wealthy province that has had to share their wealth with the rest of canada. ( it's not a country as is norway chuck ) Pretty hard to save money when you have to give your savings away every year. But no worries, with notely adding another 11 billion to their deficit in her first year, pretty soon alberta may get some transfer pmts. back eh?

[blackpowder]

Good idea. Got tired of bein outside in the winter a while ago.
Thinkin of some job that relies on others workin outside generating that 'first' dollar. Then i can sit back and decide who 'deserves' more than me. (No one of course)
Aw who am i kiddin. I cant change who i am. And besides rachels cabinet filled with outsiders already who would do a better job of doin fk all and count others money.
Last time i was ****d by a lawyer i noticed his shelves full of Suzuki. Its all about makin sure no one makes too much so the stupid and lazy can get fat too.
Some here quiet when the silent get pissed. No wonder trump getting traction.

[blackpowder]

Never listened to Bernard. Dont care. I think he needs a friggin haircut myself.
But some here live far too west for me. Keep moving on. Dont count another mans pay and speculate about his business. Sure as hell wouldnt trust you! MYOB. Wouldnt wipe my ass with what you have to say anymore. Your fired.

BTW $30M grain facility being built north of my yard. Another one just west. All since you know what was killed.