Thursday 13th December 2018

Resource Clips


Posts tagged ‘gas’

You’re invited—Geoscience BC presents webinar on Peace region groundwater research

November 14th, 2018

by Greg Klein | November 14, 2018

November 21 marks the date for a live, interactive online event open to anyone interested in a four-year groundwater study conducted at northeastern British Columbia’s oil- and gas-producing Peace River region. Hosted by Geoscience BC through YouTube Live, the two-hour webinar will feature researchers from around the world who’ll present their findings and take audience questions.

When: Wednesday, November 21, from 8:30 a.m. to 10:30 a.m. PST

Where: https://www.youtube.com/watch?v=0Zy354jH49M

For more info: http://www.geosciencebc.com/s/Workshops.asp?ReportID=839811&_Type=Workshops-and-Conferences&_Title=Peace-Project-Technical-Webinar-to-be-held-November-21-2018

Geoscience BC presents webinar on Peace region groundwater research

The Peace Project used airborne geophysics
as well as drilling in the first large-scale program
to map northeastern B.C. groundwater.
(Photo: Geoscience BC)

Draft agenda:

8:30 a.m. Peace Project introduction, Carlos Salas

8:40 a.m. Airborne geophysical survey, SkyTEM and Aarhus Geophysics, Q&A

9:05 a.m. Characterization of sediments and groundwater wells, Brad Hayes and Mel Best, Q&A

9:40 a.m. Summary of final report, Samantha Morgan, Q&A

10:10 a.m. Peace Project conclusions, next steps, Carlos Salas, Q&A

10:30 a.m. Close

Following the event, a video of the webinar will appear at the same YouTube location.

The non-profit group says the project’s maps, data and interpretations “provide an increased understanding of the aquifers and shallow groundwater in northeast B.C. and make it possible for First Nations, energy companies, communities and government to make informed decisions about the use and protection of water resources in the Peace region.”

Having undertaken over 160 projects so far, Geoscience BC encourages informed use of land, water and resources by making its findings available to local communities, governments, industry and the wider public.

Read more about the Peace Project.

See the Peace Project Final Report.

Read more about Geoscience BC here and here.

Active participants

November 7th, 2018

A new study finds greater native involvement in resource projects

by Greg Klein

A new study finds greater native involvement in resource projects

Representatives of Nemaska Lithium and Nemaska Cree negotiate the Chinuchi Agreement in 2014.
(Photo: Nemaska Lithium)

 

Trans Mountain—it’s likely been Canada’s biggest and most discouraging resource story this year. The subject of well-publicized protests, the proposed $9.3-billion pipeline extension met federal court rejection on the grounds of inadequate native consultation. But any impression of uniform aboriginal opposition to that project in particular or resource projects in general would be false, a new report emphasizes. In fact native involvement increasingly advances from reaping benefits to taking active part, with corresponding advantages to individuals and communities.

That’s the case for the oil and gas sector, forestry, hydro-electricity and fisheries, with mining one of the prominent examples provided by the Montreal Economic Institute in The First Entrepreneurs – Natural Resource Development and First Nations. “While some First Nations oppose mining and forestry or the building of energy infrastructure, others favour such development and wish to take advantage of the resulting wealth and jobs,” state authors Germain Belzile and Alexandre Moreau. “This cleavage is no different from what is found in non-indigenous cities and villages in Canada, where there is no vision for the future that everyone agrees upon.”

A new study finds greater native involvement in resource projects

Visitors tour a cultural site at the Éléonore mine.
(Photo: Goldcorp)

Mining provides a case in point, and the reason’s not hard to understand. “In 2016, First Nations members working in the mining sector declared a median income twice as high as that of workers in their communities overall, and nearly twice as high as that of non-indigenous people as a whole.”

“Between 2000 and 2017, 455 agreements were signed in this sector, guaranteeing benefits in addition to those stemming from extraction royalties due to rights held by First Nations on their territories.” Those agreements often include native priority in hiring and subcontracting, which helps explain why “6% of indigenous people work in the mining sector, compared to only 4% in other industries.”

Of course the proportion rises dramatically in communities close to mines. MEI notes that Wemindji Cree make up about 25% of Goldcorp’s (TSX:G) Éléonore staff in Quebec’s James Bay region. The native total comes to 225 workers out of a community of 1,600 people. Their collaboration agreement also makes provisions for education, training and business opportunities.

At another Quebec James Bay project, Nemaska Lithium TSX:NMX expects to begin producing concentrate in H2 of next year. Collaboration with the Nemaska Cree began in 2009 and brought about the 2014 Chinuchi Agreement covering training, employment and revenue sharing, among other benefits. The community holds 3.6% of Nemaska stock.

Even stalled projects can benefit communities. Uranium’s price slump forced Cameco TSX:CCO to put its majority-held Millennium project in northern Saskatchewan on hold in 2014. But the 1,600-member English River First Nation still gained $50 million from the project in 2014 and $58 million in 2015.

Or, to take an example not mentioned in the report, natives can also profit from an operating mine that fails to make a profit. In Nunavut, a benefit agreement with Baffinland Iron Mines’ Mary River operation gave the Qikiqtani Inuit Association $11.65 million this year, as well as the better part of $3.7 million that the QIA reaped in leases and fees. In production since 2014, Mary River remains in the red.

Of course some natives still oppose some projects. Last month Star Diamond TSX:DIAM received provincial environmental approval for its Star-Orion South project in southern Saskatchewan’s Fort à la Corne district. That decision followed federal approval in 2014.

Star says the mine would cost $1.41 billion to build and would pay $802 million in royalties as well as $865 million in provincial income tax over a 20-year lifespan. The mine would employ an average 669 people annually for a five-year construction period and 730 people during operation. But continued opposition from the James Smith Cree Nation calls into question whether environmental approval will suffice to allow development.

Similar circumstances played out in reverse for Mary River. Last summer the Nunavut Impact Review Board recommended Ottawa reject Baffinland’s proposed production increase. But support from the QIA and territorial Premier Joe Savikataaq convinced the feds to approve the company’s request. So the veto, if it exists, can work both ways.

James Smith opposition stems largely from Saskatchewan’s lack of revenue-sharing programs, a basic component of benefit agreements in other jurisdictions. “As a government it’s our position that we will not and do not consider resource revenue sharing as a part of any proposal going forward,” enviro minister Dustin Duncan told the Prince Albert newspaper paNOW. He said the province uses mining revenue “to fund programs for the benefit of all Saskatchewan residents and not just one particular group or region.”

The MEI report quotes an estimated $321 million in 2015-to-2016 revenues from natural resources overall for First Nations, a category that doesn’t include Inuit or Metis, and a dollar figure that doesn’t include employment or business income and other benefits.

While Trans Mountain stands out as an especially discouraging process, MEI points out that proponent Kinder Morgan signed benefit agreements with 43 First Nations totalling $400 million. After Ottawa bought the company, “several First Nations showed interest in a potential takeover. For some of them, the possibility of equity stakes was indeed the missing element in the Kinder Morgan offer.”

That might take negotiations well past the stage of benefits and further into active participation. As JP Gladu of the Canadian Council for Aboriginal Business told MEI, “The next big business trend that we are going to see, and that is happening already, is not only that aboriginal businesses are going to be stronger components of the corporate supply chain, but we are also going to see them as stronger proponents of equity positions and actual partners within resource projects.”

 

A new study finds greater native involvement in resource projects

The category of First Nations excludes Inuit and Metis.
(Chart: Montreal Economic Institute. Sources: Statistics Canada,
2016 Census, 98-400-X2016359, March 28, 2018)

Canada’s spy agency monitors pipeline opposition, B.C. to overhaul environmental process

November 6th, 2018

by Greg Klein | November 6, 2018

An analysis from the Canadian Security Intelligence Service “clearly indicates the spy service’s ongoing interest in anti-petroleum activism,” Canadian Press reports. The news agency obtained the June document, originally classified top secret, through the Access to Information Act.

The CSIS review outlines opposition to the federal government’s $4.5-billion purchase of the Kinder Morgan Trans Mountain Pipeline, saying some critics call it a betrayal of Canada’s positions on global warming and native rights.

Canada’s spy agency monitors pipeline opposition, B.C. to overhaul environmental process

Over 200 people have been arrested for breaching court orders at a Burnaby Mountain demonstration site in British Columbia, while other protests have taken place across Canada. But CP added that the report concedes “no acts of serious violence” took place. While activists questioned the spy agency’s interest, the report was heavily redacted, making any CSIS concerns unclear.

CSIS spokesperson Tahera Mufti told CP the agency follows legislation forbidding investigations into lawful protest. The news service quoted her saying, “While we cannot publicly disclose our investigative interests, we can say that it is important for the service to pose important analytical questions on these types of issues, such as the question of whether developments such as the purchase of a pipeline could give rise to a national security threat to Canada’s critical infrastructure.”

Ottawa bought the Trans Mountain project after a federal Court of Appeal rejected a proposed extension that the federal government had approved. The same court had previously rejected Enbridge’s Northern Gateway pipeline proposal, which won federal government approval in 2016. The court attributed both decisions to “inadequate” consultations with natives.

On November 5 the B.C. government introduced legislation to create a new Environmental Assessment Act requiring native participation at the outset of the review process.

“Having indigenous collaboration from the beginning means a more certain and efficient process where good projects can move forward more quickly, providing benefits to indigenous peoples while respecting their rights, values and culture,” said a statement from environmental minister George Heyman. “We want to reduce the potential for the types of legal challenges we’ve too frequently seen in B.C. These have impacted our province’s economic development, eroded public trust, alienated indigenous communities and left project proponents trying to navigate through a costly, time-consuming process.”

Although B.C.’s First Nations Leadership Council praised some aspects of the proposed act, the group objected that it would allow projects to proceed without native consent, according to another CP dispatch.

The legislation forms part of the Confidence and Supply Agreement in which B.C.’s Green Party agrees to support the minority NDP government.

Richard Truman of Geoscience B.C. discusses how various stakeholders benefit from the organization’s research

February 20th, 2018

…Read more

Infographics: Think again about natural resources

February 23rd, 2017

Among the news from Resource Works is the #ThinkAgain campaign, a series of infographics that “set the record straight on myths, misunderstandings, ‘alternative facts’ and fake news about resources.”

Here’s the current batch. Resource Works promises more to come.

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Infographics: Think again about natural resources

Posted with permission of Resource Works, a non-profit research and advocacy organization “supporting a respectful, fact-based public dialogue on responsible resource development in B.C.”

Infographic: Countries of origin for raw materials

November 16th, 2016

Graphic by BullionVault | text by Jeff Desjardins | posted with permission of Visual Capitalist | November 16, 2016

Every “thing” comes from somewhere.

Whether we are talking about an iPhone or a battery, even the most complex technological device is made up of raw materials that originate in a mine, farm, well or forest somewhere in the world.

This infographic from BullionVault shows the top three producing countries of various commodities such as oil, gold, coffee and iron.

Infographic Countries of origin for raw materials

 

The many and the few

The origins of the world’s most important raw materials are interesting to examine because the production of certain commodities is much more concentrated than others.

Oil, for example, is extracted by many countries throughout the world because it forms in fairly universal circumstances. Oil is also a giant market and a strategic resource, so some countries are even willing to produce it at a loss. The largest three crude oil-producing countries are the United States, Saudi Arabia and Russia—but that only makes up 38% of the total market.

Contrast this with the market for some base metals such as iron or lead and the difference is clear. China consumes mind-boggling amounts of raw materials to feed its factories, so it tries to get them domestically. That’s why China alone produces 45% of the world’s iron and 52% of all lead. Nearby Australia also finds a way to take advantage of this: It is the second-largest producer for each of those commodities and ships much of its output to Chinese trading partners. A total of two-thirds of the world’s iron and lead comes from these two countries, making production extremely concentrated.

But even that pales in comparison with the market for platinum, which is so heavily concentrated that only a few countries are significant producers. South Africa extracts 71% of all platinum, while Russia and Zimbabwe combine for another 19% of global production. That means only one in every 10 ounces of platinum comes from a country other than those three sources.

Graphic by BullionVault | posted with permission of Visual Capitalist.

Ever deeper, ever higher

October 11th, 2016

China takes on three mining frontiers, but not without competition

by Greg Klein

This is the first of a two-part feature. See Part 2.

Nearly a century before laggard Europeans got around to their Age of Exploration, Chinese merchant vessels had been travelling at least as far as eastern Africa, returning with vast shiploads of treasure. The voyages ended abruptly in 1433, for reasons debated by historians, and rulers ordered a massive merchant fleet destroyed. That largely left the New World to Westerners, evidently not a policy China intends to repeat. Now the country plans the conquest of three new frontiers: “deep underground, deep sky and deep sea.”

Such are the goals of Three Deep, a five-year plan announced last month by the country’s Ministry of Land and Resources. China’s funding R&D that would take mineral exploration deeper than ever on land and at sea, while exploring from outer space as well. But formidable as they are, the three frontiers aren’t completely uncharted. The expansionist, resource-hungry regime will have competition.

China takes on three mining frontiers, but not without competition

By 2020 the country wants the ability to mine land-based deposits that begin two kilometres in depth, find minerals at three kilometres, and identify oil and gas at 6.5 to 10 kilometres, the South China Morning Post reported October 5. China intends to develop underground communities too, although those details were even more scarce.

China also plans technology for undersea mineral exploration and mining, working towards the ability to send a remotely operated vehicle (ROV) to 11 kilometres’ depth by 2020, the paper added. That’s slightly beyond the deepest known point of any seabed. The country has already sent an ROV seven kilometres deep in the Pacific. In the Indian Ocean, Chinese have been studying seabed mining technology on a 10,000-square-kilometre area south of Madagascar, the SCMP stated.

Going from the depths to the heavens, China wants 27 satellites in orbit by 2020 to conduct surveys and research, partly on terrestrial mineral potential. The country also has expressed ambitions for moon and Mars landings, and for sending its citizens into space. A Chinese competitor to SpaceX, One Space Technology, plans its first commercial rocket launch in 2018.

SpaceX, of course, retains its Elon Musk confidence even after the Falcon 9 rocket blew up prior to take-off last month, destroying a $300-million communications satellite. Having received NASA contracts to ferry people and cargo to the International Space Station, Musk continues to talk about sending colonists to Mars. He’s already sent some lithium stocks to the moon.

Probably among the more credible companies talking about mining the heavens are Planetary Resources and Deep Space Industries. Both develop technology for NAFTA and both have signed MOUs with Luxembourg that would help finance mineral exploration and mining of near-Earth asteroids. The Grand Duchy, a global leader in satellite communications, has announced its willingness to invest in extra-terrestrial mining to become a world leader in other worlds. The country also plans to create a legal framework for its outer space endeavours, after the U.S. passed legislation giving Americans the right to keep any extra-terrestrial commodities they extract.

Deep Space says it will launch its Prospector X experimental asteroid explorer “in the near future.” By the first half of the next decade, Planetary expects to begin small-scale extraction of asteroid water for its oxygen and hydrogen.

Already a nine-year veteran of the main asteroid belt, NASA’s Dawn craft now orbits the dwarf planet Ceres after having studied the proto-planet Vesta. Last month the space agency’s NASA OSIRIS-REx set off for the asteroid Bennu, with arrival expected in 2018 and return in 2023.

JAXA, the Japan Aerospace Exploration Agency, has been to that neighbourhood and back after its Hayabusa craft delivered asteroid samples in 2010.

Last month the European Space Agency ended the 12-year, eight-billion-kilometre odyssey of its Rosetta craft, which spent the last two years studying a comet. In a joint project with Russia’s Roscosmos, the ESA expects to land a capsule on Mars on October 19 to search for signs of previous life.

Russia’s moon exploration program sees potential for minerals delivered by asteroid impact. “In the next few years, all scheduled moon flights will focus on its southern polar region, where low-temperature reservoirs of rare earths, as well as unknown volatile substances, have been detected,” Industrial Minerals quoted Vladislav Shevchenko of Moscow State University. Given higher commodity prices, mining could be viable, he added.

Boeing NYSE:BA recently matched Musk’s big talk as CEO Dennis Muilenburg spoke about sending holidayers to orbiting tourist traps prior to linking up with the Red Planet. “I’m convinced the first person to step foot on Mars will arrive there riding a Boeing rocket,” Bloomberg quoted him last week. As a NASA contractor Boeing competes with SpaceX on its own and through the United Launch Alliance, a JV with Lockheed Martin NYSE:LMT.

This is the first of a two-part feature. See Part 2.

The non-profit group Resource Works points out green energy’s reliance on oil, gas and mining

July 18th, 2016

…Read more

Visual Capitalist: Gold and zinc crush it in Q1, energy gets smoked

April 8th, 2016

by Jeff Desjardins | Visual Capitalist | April 8, 2016

Gold and zinc crush it in Q1, energy gets smoked

 

The start of 2016 has been a roller coaster for investors.

Global markets had their worst ever start in the first trading days of the year, with the S&P 500 eventually shedding 10.5% by early February. Stocks have rebounded since then, but tension is still in the air with record longs on the VIX Volatility Index.

Precious metals

For this reason, among many others, investors piled into precious metals in Q1 of 2016. Gold finished up an impressive 15.9%, buoyed by record buying in gold ETFs. Meanwhile silver and platinum, which are considered precious metals with more industrial uses, were also up in Q1 to a lesser extent: 9.4% and 6.6% respectively.

Base metals

Base metals were all over the map in the first few months of the year. Zinc shot up a surprising 20%, though it has been overdue for a bounce-back since hitting five-year lows in 2015. Nickel and copper, however, did not perform as admirably. Nickel was in negative territory (-3.1%) and copper ultimately ended up flat, despite a large rally in February and early March.

Energy

The energy sector had no real winners, with WTI crude, natural gas and uranium all ending up in the red. Natural gas was the worst of these with a steep -17% drop as it continues to eye multi-decade lows. Some analysts expect more downward pressure on natural gas now that the quantity of gas in storage is 34.2% higher than the five-year average.

Food

The world’s key agricultural commodities were a mixed bag in terms of performance. Soybeans jumped 4.2% in value, but wheat (1%) and corn (-0.3%) only had subtle changes in prices.

With many looming questions for Q2, we’re sure that our next quarterly update will be just as eventful. Concerns around a potential Brexit, negative interest rates, stagnating manufacturing and a potential U.S. rate hike could make for a particularly interesting time period.

Chart presented by First Mining Finance Corp. Posted with permission of Visual Capitalist.

From carbon tax to blood tax

March 23rd, 2016

Canada should reject American hypocrisy and Saudi blood oil, says Stewart Muir

by Stewart Muir, posted with permission of Resource Works

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Don’t miss a new PBS exposé out March 29 featuring human rights abuses in Saudi Arabia, which sold $100 billion worth of crude oil to Canada between 2012 and 2015. Those who have seen the documentary say the footage is shocking to behold.

It’s a mystery why Canada is content to import billions in blood oil from Saudi Arabia while at the same time pursuing policies at home aimed at eliminating Canadian oil from the market.

Canada should reject American hypocrisy and Saudi blood oil, says Stewart Muir

Which world leaders would be happy to
see Canada stop producing its own energy?
(U.S. White House photo by Pete Souza)

Just before Christmas, the Saudis beheaded Filipino Joselito Lidasan Zapanta because he could not pay a ridiculous $1-million fine.

Policies aimed at curtailing western Canadian energy development will only make us more dependent on bloodthirsty Saudi oil, while eliminating tens of thousands of our best-paying jobs.

If we are content to let eastern Canada source its oil from a country that executes citizens who question the government, and at the same time sell armaments to Saudi Arabia, what does that say about our own democratic system?

Yet if Ottawa has any particular concern over the soaring suicide rate among Canadian oilpatch workers, that would be news to me.

For those who don’t believe you have to give up the economy to save the environment, the resulting question is simple: What is the way to stand up for Canadian families and stop rewarding Saudi princes for their despicable practices?

One practical step we can take today is simply to ensure that every Canadian policy on fossil fuels applies equally to all of our energy imports.

Until 100% of our imported products are in compliance, no Canadian products should face domestic prejudice.

I understand we need international trade, but Ottawa’s eagerness to source oil from a savage regime while taking measures to curb the oilsands remains a sore point with me.

One possibility is imposing a blood tax, much like a carbon tax, that rewards social responsibility. Our Charter of Rights and Freedoms, our parliament and our courts provide a yardstick that we could use to measure others against.

Obama’s Arctic vision and what we could learn

On a similar topic, last week saw a major existing supplier of Canadian oil take strides to massively increase its own oil production. I’m talking about the United States and its decision to pursue a long-term exploration plan for the high Arctic.

Come again? Isn’t U.S. President Barack Obama a climate crusader working hard to end the burning of hydrocarbons and stop Canada from building pipelines?

No, actually, he’s not. In case you thought moral suasion from Canada on addressing climate change was having any effect whatsoever on the U.S., think again. The fact is, the U.S. is obsessed with its own energy security and there is no way it will jeopardize a long-term supply of the fossil fuels that provide about 80% of its needs.

Canada should reject American hypocrisy and Saudi blood oil, says Stewart Muir

(Image: Resource Works)

Last week’s news from the U.S. Bureau of Ocean Energy Management will result in new oil and gas leases off the coast of Alaska. The map of the area that could be opened to drilling includes offshore territory Canada claims as its own.

Why is the U.S. doing this now? Simple: because Americans have a long-term plan for energy.

“If development starts now, the long lead times necessary to bring on new crude oil production from Alaska would coincide with a long-term expected decline of U.S. Lower 48 production,” reported the National Energy Council, which advises the U.S. government. “Alaskan opportunities can play an important role in extending U.S. energy security in the decades of the 2030s and 2040s.” (See page 13 of the report.)

So while the U.S. is taking pragmatic steps for long-term viability as an energy-intense nation state, in Canada we seem to be at risk of basing energy planning on “100% carbon-free” slogans that appeal strongly to some voters. The March 22 federal budget was heavy on climate and clean-energy promises that require (and deserve) focus. Yet as the budget also recognizes, our national future depends on the ability to evolve and improve the solutions we already have in place.

A National Energy Council for Canada

Much work is now required for Canada to figure out what it means to look for new ways to “expand and green” the economy and create opportunities for citizens. For now, the lack of a coherent Canadian energy strategy also means, as CBC pointed out last week, that questions are being raised as to whether U.S. energy development in the north threatens our very sovereignty.

Americans are no fools. They know that the longer time frame required for arctic projects is the result of remoteness, long supply chains, short exploration seasons due to ice, regulatory complexity and potential for litigation. The Americans know that it can take more than 30 years to line up all the necessary success conditions and that’s why they are getting cracking now.

In Canada, we also have the potential to ensure that beneficial energy sources, ones that will be subject to unwavering environmental controls, are developed.

What we totally lack is a coherent national political vision—one that acknowledges the need to green our energy supply and lower our impact on the planet, one that also recognizes the economic realities of the present day.

An attempt at a national energy strategy, developed by the premiers at the Council of the Federation, represents a weak vision compared to the clear path that American energy planners are following. Placing national sovereignty far down the list of priorities is not a mistake that other countries are making today. Also unlike most countries, Canada occupies an enormously privileged position when it comes to the natural assets it possesses.

Last week, the National Energy Board reported that a heretofore wallflower of Canadian natural gas plays, the Liard Basin, is suddenly the belle of the ball. This source of gas (the cleanest fossil fuel) now turns out to be one of the biggest in the world. It straddles the Yukon, B.C. and the NWT. The upgraded estimates say the Liard has enough natural gas to meet Canada’s needs at 2014 levels of consumption for nearly 70 years. Meantime, the NWT is sitting on 200 billion barrels of oil identified in two NWT shale formations alone.

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