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Low oil prices concern for government: Dunderdale

Premier Kathy Dunderdale. — File photo

Premier Kathy Dunderdale. — File photo

Published on July 23, 2012
The Telegram
Published on July 23, 2012
Topics :
Canada , Muskrat Falls

Premier Kathy Dunderdale is worried about the price of oil and asking her ministers to tighten their belts.

Speaking to the media around lunchtime, Dunderdale said that low oil prices are a concern, and the government needs to manage the situation.

With oil prices currently more than $20 per barrel below where the province forecast it, that could mean hundreds of millions of lost revenue.

Dunderdale also talked about an upcoming meeting of Canada's premiers. She said the top issues for her are health care and energy — especially the Muskrat Falls hydro project.

Dunderdale said on national issues, she's disappointed that there hasn't been more leadership from Prime Minister Stephen Harper.

More coverage in Tuesday’s Telegram print edition.

Comments

  • Username
    Little Man Dan
    - July 25, 2012 at 15:35:15

    See now Kathy; that's why I wish I had to appoint you to the sleepy offshore board and annoint da Princess as Premier!

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  • Username
    Iworkthere
    - July 24, 2012 at 21:47:47

    wait a minute....the last hydro bill I got told me because of high oil prices my electricity bill will be going up?? Huh

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  • Username
    Todd
    - July 24, 2012 at 13:01:14

    I think that when oil prices fall, so should wages in the industry. As the price of oil increases salaries in the industry should increase. Oil has inflated the income of those working in the industry who have no education and earning more income than a doctor. As a result as seen in NL houses worth $150,000.00 selling for $400,000.00. Something will break eventually, and the Have province of NL will be short lived. Time for everyone to wake up, not just government.

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  • Username
    Petertwo
    - July 24, 2012 at 05:58:45

    On the premier's low oil prices comment, "that could mean hundreds of millions of lost revenue" ? You cannot loose what you never had. I think most folks would like to see them much lower.

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  • Username
    concerned
    - July 24, 2012 at 03:07:14

    No worries Premier Dunderdale, your appointed Nalcor Board of Directors led by beer man Terry Styles, will fix all of your energy woes. To think otherwise would be "offensive".

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  • Username
    amazedndismayed
    - July 23, 2012 at 23:46:39

    last i checked (2 days ago) gas was over $1.30 + per litre.does it matter if the price of a barrel is under $100 per!!?? ur still reaping the rewards. when a barrel of oil peaked in '07 @ $150 per, we were playing 1.49 per litre. something really doesnt add up ..if anything ur making more provits than ever before, nowadays!! "stun"derdale...would u please STEPDOWN! also, publc speaking is not your strong-suite....ur awlful at it. take the marbles outta yer mouth

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  • Username
    Jack
    - July 23, 2012 at 20:54:12

    I think that a good idea to address at Budget 2013-2014 is the Newfoundland and Labrador Government should take a page out of Norway, Azerbaijan, United Arab Emirates, Saudi Arabia, Alaska (USA), Alberta (Canada), Algeria, and even Libya, and implement an oil base sovereign fund. A minimum of 10% of the net oil royalties per year will be invested into this fund, which will be used to prepare Newfoundland and Labrador for a post oil based economy and keep our social programs going at minimum pain to the taxpayers.

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  • Username
    Reality Check
    - July 23, 2012 at 20:24:28

    Concerned about "low oil"!! How about "no oil"? It is not that far away. What then? Out of control spending based on revenue from non-renewable resources ...hmm? Wise or just plain dumb? Only a fool has to think for more than a second about the correct answer. Unfortunately the blame for the terrible consequences will fall to the the then person/party in power and not the many that came before who played a big part in emptying the cookie jar.

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  • Username
    Dawn
    - July 23, 2012 at 17:55:58

    Well let's see..Blunderdale is all about the Muskrat Falls..Holyrood is only at about 50% and the Upper Churchill has too much power that Quebec cannot sell to anyone,so why would we have the muskrat falls?It is going to cost us taxpayers a fortune,light bills will double and not to mention , our great great grandchildren will still be paying it off . And is she that stupid to think the oil is going to actually stay at what the government forcat it to be? Exactly , out "have" province is going to be a have not sooner than later ..Although people are whining , you have to remember who voted her in , in the first place . And when election time comes around, people are going to have very short memories!!

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  • Username
    Eli
    - July 23, 2012 at 16:54:01

    Disappointed with Harper, Muskrat Falls on her agenda at the Premiers meeting? Anybody out there get the feeling her Muskrat backing from Ottawa is in the dumpster?

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  • Username
    John Verville
    - July 23, 2012 at 16:51:04

    How can any government forecast or even present a budget on a "maybe"??? Wether it's federal or provincial, the oil price fluctuations have been like the "Golden Egg" for the past few years but now they tell us it was part of the budget! Newfoundlanders ave been paying tru the nose for months now and we produce oil...Ontario cities such as Ottawa have a 10 to 20cts a litre difference on a daily basis and the only fumes coming out of the capital is from the House of Commons and the Senate! Please stop laughing at us and budget on real numbers....

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  • Username
    saltheart
    - July 23, 2012 at 15:14:51

    it's funny how quickly people forget, i'm not defending the government but. remember we got tax breaks, well back in 2007 we never had that so the money had to come from somewhere, the doctors and nurses all wanted raises or they were leaving, that money had to come from somewhere, in 20 years or so when we don't have the oil revenues, probably wont have an income from muskrat falls either because of shortterm thinking, what will happen to everyone then, there will be more whining about how we should have used the money to diversify create income to the government, what our future holds for us is a housing crash, like Ireland, where people have a 500,000 morgage on a house that is realistically only worth 180,000, our taxes are going to skyrocket because we are going to have to pay for the raises everyone wants now, it's funny how greed sets in and we all want a bigger cut of the pie, and when we end up with egg in our face, it's government mis-management

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  • Username
    Rob
    - July 23, 2012 at 14:53:47

    So. What are we gonna do when the oil runs out in 20 years. If we are this susceptible to the fluctuations of oil prices... where will we be when there is no oil?

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  • Username
    T K
    - July 23, 2012 at 14:46:39

    Isn't there something just a bit odd about worrying about oil prices being too low? I know the reality of course, the province derives so much of its wealth from petro-dollars, but complaining about low oil prices is a little counter-intuitive. Making a product more affordable, especially a product as indespensible as oil would normally be considered a good thing. I know, way too simplistic economics....

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    • Username
      d
      - July 23, 2012 at 23:16:05

      Our governments are too dependent on oil for revenue, and the little revenue we have is being spent on Muskrat falls. In the end the people of this province are the ones getting screwed. Don't you think we should have searched for a cheaper alternative and make it about the PEOPLE. God forbid people can actually afford to heat their homes right now-especially people on fixed incomes. Cuts have started to happen, and it will get a lot worse and things will start to become even more expensive. Wait and see.

    • Username
      d
      - July 23, 2012 at 23:18:20

      Our governments are too dependent on oil for revenue, and the little revenue we have is being spent on Muskrat falls. In the end the people of this province are the ones getting screwed. Don't you think we should have searched for a cheaper alternative and make it about the PEOPLE. God forbid people can actually afford to heat their homes right now-especially people on fixed incomes. Cuts have started to happen, and it will get a lot worse and things will start to become even more expensive. Wait and see.

  • Username
    Cold Future
    - July 23, 2012 at 14:44:13

    What a contradiction. Muskrat and heath care. The money spent unwisely on Muskrat is money that could be put to good use on health care. A senate commitee is now recommending that Western Canadian oil and gas be piped directly into eastern Canada. Why because it reduces our dependence on foreign oil, is good for the prairie provinces, and brings the cheap gas products east so that we in eastern Canada will not need to develop very expensive hydroelectric projects like Muskrat. Does anybody out there think that Harper may be about to ABC us again- or are we doing it to our own selves?.

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  • Username
    Charles
    - July 23, 2012 at 14:43:50

    Now this is the time for the Liberal to shine...There no better OPPORTUNITY...To let the people of N&L know that they made the wrong CHOICE...When they elects the PC...Now it down hill for us.

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  • Username
    Scott Free
    - July 23, 2012 at 14:11:57

    Funny how low oil prices by the barrell is not reflected in low gas prices by the litre. When the barrell is up around $135., gas is around $1.35; but, when the barrell drops to $85., the price at the pump remains in the $1.30 range. Guess that's why it's called the Oil and Gouge industry.

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  • Username
    Concerned Citizen
    - July 23, 2012 at 14:06:11

    The face tells it all. Our so called HAVE PROVINCE is about to sink...........AGAIN. We haven't seen any cuts yet to what we are going to see. The first place to start is at the Big Building on The Hill with those overpaid executives and members that say they are here for the people. What a joke!!!!!!!!!! This stupid, unprofessional, ignorant, moronic and brain dead PC party should all resign because before the people of this province know it we will have nothing, which looks like where we are headed right now and have been for a while. OUST KATHY THUNDERDALE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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  • Username
    Jack
    - July 23, 2012 at 14:00:10

    When Crude Oil futures in 2007 are around $80 per barrel and resulting in a $500 million budget surplus, but prices are around $100 per barrel in 2012 and resulting in a $600 million deficit, you know that something is wrong. To add insult to injury, even though crude oil futures will remain the same in 2013, our annual deficit will increase from $600 million to $1 billion. Due to the large financial deviations, I'm starting to suspect that Gerry Byrne maybe right in saying that the Newfoundland and Labrador Government is stealing money from taxpayers and important projects to finance Muskrat Falls. The Corner Brook hospital project delays prove that its already happening. In light of this gross financial mismanagement where crude oil futures are increasing but surpluses are not reflecting it, perhaps now is the time for Kathy Dunderdale to be recalled, removed from office, have a new election, and elect a new Premier whom will not steal money from taxpayers to finance power projects. Logically speaking, if crude oil futures go up and remain the same, budget surpluses should remain the same or increased, not down. When the opposite happens, Dunderdale is breaking the laws of Economics and Finance.

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  • Username
    JAMES
    - July 23, 2012 at 13:49:54

    WELL WELL, the premier asking ministers to tighten their belts because of low oil prices. is she willing to tighten her offices belt and not go to the premier's meeting in halifax all @ the expence of the newfoundland taxpayer ? air flight, wine/dine, great meals, fancy hotel, limo service. sounds like a waste of tax dollars to me.

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  • Username
    Aub
    - July 23, 2012 at 13:46:12

    Sure, go for higher oil price which leads to higher gas prices which affects all of us. What happened the "over $70/barrel making the province rich"? Go ahead and look out for yourself and let the rest of us suffer thru higher prices for everything.

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  • Username
    Dan
    - July 23, 2012 at 13:08:25

    Here come the cuts! Why not cut all of the wasted money for Muskrat Falls!!! Way to go PCs sink the ship with unrealistic oil prices, why not just budget lower and reap the rewards if prices where better???? NO that is is too simple...especially when all unions are rounding the negotiating corner! Put on poor face in our newly defined "have province" Oh the pollsters are gonna love the next three years!

    Submit a comment

    • Username
      Attention Span
      - July 23, 2012 at 13:54:36

      Seriously?? Election time all we hear is how great the PC's have done with the Budget and all of the surplus's they had during the year. If the opposition dares to question Mrs. Bluderdale, all she does is talk about the Rosy economic picture the PC's have created, and all the wonderful deals they have upcoming. Yet, ever since union contracts have started to expire the word has been nothing but Doom and Gloom from the wicked witch of the East. I cannot wait to see this good for nothing gone!!!

    • Username
      Jack
      - July 23, 2012 at 14:05:41

      Dan, I'm afraid that the cuts are already happening. Take a look at Eastern Health and its recent 500 job losses, and possible major job losses at Central Health, Western Health, and Labrador/Grenfell Health boards as a good example. In the meantime, due to the Newfoundland and Labrador Government funneling all taxpayers money on Muskrat Falls without our permission, and the persist delays with the new hospital in Corner Brook is a good example based on the evidence Gerry Byrne provided. Too add insult to injury, the Crude Oil futures will remain the same in 2013, but the deficit is even higher, indicating that something is definitely wrong with the Bluderdale government. Time to bring Danny Williams back.

    • Username
      W McLean
      - July 23, 2012 at 14:28:43

      Bring Danny Williams back? As Danny Williams would say, yagottabekiddin'. Who do you think started the province on the track of spending the oil and Voisey's Bay money as fast, or faster, than it came in?

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