FRIDAY FREE FOR ALL - April 17th, 2009
By 250 News
Friday, April 17, 2009 04:00 AM
The provincial election is underway, the spring weather has finally arrived, what a week!
Now it's your turn:
Keep it clean
Keep it legal
No bullying of other posters.
L E T 'E R R I P !!!
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http://www.canadianbusiness.com/article.jsp?content=20030512_53695_53695&page=1
Highlights of the article include:
Ladyfern also highlighted the BC government's greed for fast money--as well as the dubious competence of the province's energy regulator. "The people who truly got burned were the owners of the resource: the people of British Columbia," says Ian Doig, editor of Doig's Digest, a monthly Calgary-based oil and gas newsletter. "Ladyfern was supposed to be a monster play, but with regulatory neglect it became a national embarrassment."
By March 2002, so many wells were sucking on Ladyfern that production declined from 700 million cubic feet per day to 400 million cubic feet. Production today stands at about 300 million cubic feet--and is expected to soon become a trickle. As a result, there wasn't much gas left to cushion this winter's price shock.
None of this information, of course, has ever graced a government press release. Throughout 2002, Premier Campbell continued to champion Ladyfern as the poster girl of the province's oil and gas industry. Campbell even boasted that oil and gas dollars accounted for 8% of the province's revenue, or nearly $2 billion--a sum even greater than forestry brought in.
With the exception of the BC government, just about everybody involved in Ladyfern now offers some sobering hindsight.
Rob Woronuk, a Calgary-based analyst with the Canadian Gas Potential Committee, an independent natural gas resources watchdog, pointedly describes Ladyfern as a model of how things shouldn't be done. For a find as precious as that, a competent regulator should have paid attention to reservoir geology, conservation and the public interest, he argues. A proper plan for depleting the reservoir over time in an economic manner would have maximized returns to the taxpayers of BC, Woronuk adds. "You are supposed to do that," he says. "That's the public's gas. We own that."