OUR GREAT MINDS

    by Tina Olivero

    Could Newfoundland Boom With An Offshore Land Lottery?

    Covid-19 has much the world’s oil and gas industry on hold.

    When we stop moving, we stop using energy at the level we did. On top of a dramatic decrease in oil and gas consumption, oil prices have drastically declined.

    As a result of these two factors, oil companies and contractors have laid off employees for 12-18 months who work offshore. For many employees, suppliers and oil companies, work is on hold for months and months. It is rough times.

    Offshore Newfoundland, the industry that produced over $120 BILLION in revenue and nearly $50 BILLION in investments over the last three decades… well, let’s just say, the arse is out of ‘er.

    Our saving grace, our prominent employer, our foundation and security are evaporating right before our eyes. And here we are, home and isolated, wishing our cake dough.

    Now what?

    Isolation can teach us a lot. A Vietnam war veteran, who was held in captivity for decades, said, “I learned quickly that the restriction I felt, while living in captivity, was not isolation; it was the limits of my mind. That’s how I survived. People who didn’t survive didn’t understand that.” During this Covid-19 isolation time, his sentiments have stuck with me. If we are going to survive we better get out of isolation and into a mindset of possibility and opportunity.

    I believe radical times call for extreme action, and this time is one of massive good fortune if we embrace it. I’m not talking about a slightly different version of the offshore industry. I’m not talking about waiting for the oil price market to recover. I’m not talking about hoping Covid-19 will go away.

    No, none of that is going to give us the offshore industry back, let alone make it a stronger-than-ever version of itself.

    I’m talking about making an offshore market.

    Yes, making a market as I did 30 years ago with The Oil and Gas magazine. Before The OGM, we never had a dedicated information source that elevated our projects and people, in the form of a magazine. There was no market for the magazine. So, six years before oil even came to shore we MADE A MARKET.

    And that is precisely what we need to do right now; we need to make a new market. Here’s one strategy that could work.

    The Newfoundland Offshore Land Lottery.

    We have over 650 PROVEN oil prospects offshore Newfoundland. Each prospect is identified as offshore land surveys which are already published and paid for by the people of Newfoundland and Labrador’s taxes.

    Each prospect offshore has the potential to be the next significant oil discovery. What if we gave away 20 or our 650+ land prospects to 20 lucky lotto winners?

    In other words, 20 opportunities would become available to existing oil companies in the region and also to any other qualified global company who wanted to drill for oil offshore Newfoundland. Not only would it put all eyes on this province as a hot-bed to invest, it would spud an oil bonanza! Taking it even further, what if Canada became majority share holders in its own oil projects, like Norway did. Would that provide us with the possibility of a robust industry and owners ultimately financial gains that lead to the largest trust fund in the world, just like Norway?

    ENVISION IT:
    The land lottery would go something like this:


    OIL COMPANIES: ENTER TO WIN OFFSHORE NEWFOUNDLAND

    20 oil companies will become lotto winners of highly lucrative land offshore Newfoundland.

    This land lotto is your once-in-a-lifetime opportunity to drill and discover oil, while the rest of the world is on hold. As a lucrative land winner you will have 7 global advantages:

    1. Newfoundland is virtually Covid virus free, which means with the right Covid-19 back-to-work protocols in place, you could be drilling for oil here within the next 12 months.
    2. Right now, as a lottery winner, there is a ONE TIME ONLY opportunity to get your offshore land parcel for free, saving your company millions upon millions of dollars.
    3. Through our land survey system, your land has been identified as a qualified lead for oil discovery. That means your company has an identified prospect for oil recovery, and you may strike oil. The chances are at least one in ten.
    4. The Canadian federal government would have to guarantee 20 land lottery winners environmental approvals within 90 days, which means drilling plays are up and running in record time. (Of course the Feds would have to agree – nudge, nudge Minister Seamus O’Regan)
    5. We have a stable government and country with strong leadership.
    6. We have an established oil industry that is ready to support oil companies drilling.
    7. Canada will partner with you and elevate your chances of success.

    To be eligible the only commitment you have to make is to drill within the 12 months of winning your offshore land parcel.


    Being The Obvious Choice

    Now for most oil and gas companies that are looking to get back on track with oil drilling, this option would be an obvious choice above ALL OTHER GLOBAL OPTIONS! It’s free land after all. Would you be more inclined to buy your next house, if the land was free and you saved thousands upon thousands of dollars? Would you take the chance and buy that house now in the midst of uncertain times, because the deal is too good to ignore?

    Oil companies would be thinking, “Offshore Newfoundland, free land, guaranteed environmental approval timelines, and one of the healthiest places in the world to operate, as far as Covid-19 is concerned, and a strong partner in Canada. I like it!”

    For Newfoundland, and Canada the lottery would be a gold mine. Black gold, that is. Think about it. Instead of 7 new entrants to the offshore we would have 20. That means 20 companies would drill offshore Newfoundland all within a year. Think about the level of business that would happen with 20 drilling plays happening here, simultaneously. Billions in expenditures would start to flow into the country.

    The more we drill the more we will find oil. It is that simple. The chances of finding oil in a land lottery are incredibly high. So while the oil industry around the globe is virtually on hold, Offshore Newfoundland could overtake places like Guyana and could then positioned to become the next North Sea. It’s a win win for all.

    Now I don’t know about you, but I believe this is a really smart thing to do because:

    • A land lottery would work.
    • A land lottery would set our oil industry up to be the most lucrative resource rich place in the world.
    • A land lottery would be the most progressive play we have ever experienced in this province and indeed Canada.
    • It would mean royalties for Newfoundland and Canada for decades to come.
    • It would mean unprecedented numbers of jobs.
    • It would mean a dynamic and booming supply base and provincial economy overall.
    • It’s a solution to the most challenging time the world has known. In this lottery scenario, 20 companies win, so that everyone wins!

    You have to ask yourself, are we going to keep ourselves in the constraints of business in the past? Are we going to sit there and tweak this or that to create marginal gains? Are we going to play the safe card not believing we deserve to prosper?

    Or are we going to blow the doors off of er? I’m for the latter.

    The Land Lottery is the play. There is no time to hesitate. It would have to be now! We would have to collaborate. We would have to act with precision. And most of all we’d have to remove our man-made-limitations in our own minds.

    Stay safe, my people, and to the twenty proposed winners of the potential land lottery…. Long May Your Big Jib Draw!

    Source & Graphics: Government of Newfoundland and Labrador

    ____________________________________________________________________________

    For further discussions on the solutions
    and vision for Newfoundland’s Offshore
    oil industry please contact author:
    Ms. Tina Olivero:
    Tinaolivero@theogm.com
    709 770 0677

    It is time!

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