Showing posts with label linkjs. Show all posts
Showing posts with label linkjs. Show all posts
St. John’s economy hot, but it won’t last
Monday, December 15, 2008 | Labels: economy, labrador, linkjs, newfoundland, oil, st. john's | 0 comments »
In the week Canada officially entered into economic recession, Newfoundland and Labrador, once Canada’s poorest province, announced it will post a $1.2-billion surplus for the current fiscal year.
That’s more than double the surplus projected in April 2007.
Yes, the global financial crisis has come to Newfoundland but you would never know it by the construction boom, housing prices and car sales in the province. It seems oil and timing are everything and this time it’s in the province’s favour. There’s no talk of recession on Water Street.
And it’s oil that’s greasing the economic boom in St. John’s.
Although oil prices are dropping, the industry is in a unique position here because of its development cycle.
As Tim Murphy of Chevron explains, "The three existing production fields are mature, paid off and making money. As long as operating costs are met there is money to be made.
"Hebron and other future projects are not due for five to 10 years and not really dependent on today’s oil prices. So planning work continues." Chevron is expanding its harbourfront offices to accommodate the team working on next year’s offshore exploration program on the deep-water Orphan Basin site.
The Hebron project offices are opening in the new year and recruitment ads will be in the papers soon. Seminars for supplies are scheduled for this spring. Expansion to the Terra Nova and White Rose oil fields is underway and Hibernia South is expected to be announced soon.
St. John’s looks every bit the boomtown. New Mercedes, Porsches and Land Rovers jostle with contractors’ pickup trucks at the coffee shops in the morning. But falling oil prices could put an end to the boom next year.
That’s more than double the surplus projected in April 2007.
Yes, the global financial crisis has come to Newfoundland but you would never know it by the construction boom, housing prices and car sales in the province. It seems oil and timing are everything and this time it’s in the province’s favour. There’s no talk of recession on Water Street.
And it’s oil that’s greasing the economic boom in St. John’s.
Although oil prices are dropping, the industry is in a unique position here because of its development cycle.
As Tim Murphy of Chevron explains, "The three existing production fields are mature, paid off and making money. As long as operating costs are met there is money to be made.
"Hebron and other future projects are not due for five to 10 years and not really dependent on today’s oil prices. So planning work continues." Chevron is expanding its harbourfront offices to accommodate the team working on next year’s offshore exploration program on the deep-water Orphan Basin site.
The Hebron project offices are opening in the new year and recruitment ads will be in the papers soon. Seminars for supplies are scheduled for this spring. Expansion to the Terra Nova and White Rose oil fields is underway and Hibernia South is expected to be announced soon.
St. John’s looks every bit the boomtown. New Mercedes, Porsches and Land Rovers jostle with contractors’ pickup trucks at the coffee shops in the morning. But falling oil prices could put an end to the boom next year.
A big Woooo Hoooo to being out of that border crossing rat race... suckers
Friday, January 18, 2008 | Labels: border, canada, linkjs, usa | 0 comments »
More on the White Rose expansion
Tuesday, December 18, 2007 | Labels: labrador, linkjs, newfoundland, oil, royalties, white rose | 0 comments »
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