Hillcrest to Commence Operations to Re-Start Oil Production Operations in Saskatchewan
Momentum Public Relations
Press Release: October 2, 2018
Hillcrest Petroleum Ltd. (the “Company”) ( TSX-V: HRH ) (OTCQB:HLRTF) is pleased to announce that it is commencing operations to re-start oil production from the West Hazel Oil field in Saskatchewan, with first oil sales expected in November, 2018.
Under the terms of its Joint Venture Agreement, the Company will provide 100% of reactivation costs to return the field to production through a wholly owned subsidiary to earn a 75% Working Interest, reverting to 50% after reactivation costs are paid back from cash flow .
The West Hazel field produced over 200 bbl/day oil before being shut in by the previous operator due to financial distress in 2015.
Restoring production from the West Hazel field includes refurbishing and upgrading production facilities including water disposal and returning four previously producing wells to production.
Initial oil production is expected to be between 150 and 250 bbl/day, with potential to increase to 500 bbl/day with further and previously unidentified well recompletions and development drilling in 2019.
Immediate reactivation costs are expected to total approximately $750,000.
For more information on Hillcrest Petroleum Ltd, contact Don Currie toll free at 1-855-609-0006 or visit the Company’s website at www.hillcrestpetroleum.com
ON BEHALF OF THE BOARD
Donald Currie
Chief Executive Officer and Director
- Published in Hillcrest Petroleum, Oil and Gas
Hillcrest Petroleum Ltd. Becomes Member of the 8020 community
Momentum Public Relations
Press Release: September 12, 2017
Vancouver, British Columbia (FSCwire) – Hillcrest Petroleum Ltd. (the “Company” or “Hillcrest“) is pleased to announce that it recently became a member of the 8020 Connect community. 8020 Connect (www.8020connect.com) is the investment industry’s newest investor community, developed to deliver corporate information to shareholders, investment industry experts and like-minded investors, while enabling these group members to interact with one another and with the company’s corporate management team.
Through the 8020 Connect shareholder and investor platform, Hillcrest can communicate its corporate message and update advancements and financial information to all shareholders and investors in a timely and effective fashion. The 8020 Connect provides a monitored and professional environment, allowing the company to respond to questions and manage group conversations. The 8020 Connect platform and services will also provide Hillcrest with an opportunity to expand its audience to other interested investors and industry experts worldwide.
Looking for a new way to be informed? Join our Investor Group on 8020Connect
Don Currie
Chief Executive Officer and Director
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Hillcrest09122017.pdf
Source: Hillcrest Petroleum Ltd. (TSX Venture:HRH, OTCQB:HLRTF)
- Published in Energy, Hillcrest Petroleum, Mining, News Home, Oil and Gas
Hillcrest Petroleum Expects Alberta Assets To Start Production by November 2017
Momentum Public Relations
Press Release: September 12, 2017
September 12, 2017 / TheNewswire / MONTREAL, QUEBEC, Momentum PR client, Hillcrest Petroleum Ltd., is listed on the TSX Venture exchange (“TSXV”) under the symbol: HRH and in the United States on the OTCQB under the symbol: HLRTF.
Momentum PR is pleased to have produced an informative and comprehensive report on Hillcrest Petroleum Ltd., available on the Momentum PR’s website.
Hillcrest Petroleum Highlights:
- -On July 26, 2017 Hillcrest announced that the Alberta Energy Regulator had approved it to operate oil and gas assets in Alberta.-The Alberta asset consists of two wells and three additional development locations which have already been located with 3D seismic mapping.
-The Saskatchewan asset consists of 4 wells and five additional development sites that have been located with subsurface mapping. Hillcrest is considering 3D seismic mapping before drilling.
-The two projects will cost a combined C$2.2 million, most of which is refundable bonds. In return they should provide – depending on the amount of oil pumped – gross revenues over C$400,000 per month.
-In exchange, Hillcrest receives a 75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} working interest in each property until the amount invested is repaid. Then, Hillcrest receives a 50{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} working interest. Hillcrest remains the asset operator throughout.
In the last five years the price of oil has tumbled and has been subject to extreme volatility. In January 2012, a barrel of oil touched US$125.00. By July 31, 2017, it had dropped to US$52.16. As of July 31, 2017, oil’s 52-week low came to US$42.03 with a high of US$58.26. As the price of oil fell, some producing wells ceased production and waited for high oil prices to return. Among these shut-in wells are those whose owners no longer have the financial capacity to turn them back on. These are the ones that have Hillcrest’s immediate attention.
Hillcrest’s short-term strategy has been shaped by falling global oil prices. It can be summed up as the acquisition of substantial, operated, producing assets with high value growth potential in proven and prolific conventional oil and gas basins. The Alberta and Saskatchewan wells are a blueprint for Hillcrest’s immediate future. “We can replicate that model in both provinces and have started discussions with various people in both provinces, to get involved on a joint venture basis by using bond value and minimal cash to open up wells.” Don Currie, CEO
Hillcrest, which is officially headquartered in Houston, has experienced and successful management members. Executive Chairman and Director Michael Krzus was the founding CEO of NYSE-listed Emerald Oil, which started with a US$100 million market cap and grew to over US$500 million during his tenure. Krzus has extensive international experience having worked for Woodside Petroleum, Australia’s largest oil and gas company. His term at Woodside included a four-year secondment to Shell in the Netherlands, where he led oil and gas field development teams. Krzus has 32 years of experience in the oil and gas industry in Canada, the U.S., Australia and the Netherlands.
Chief Operating Officer Jason P. Oden was the Vice President Exploration of Gulfsands Petroleum ; and formerly the Principal Geologist with BHP Petroleum, as well as working for Suncor. Oden has more than 25 years of progressive technical and managerial experience in domestic and international oil and gas exploration appraisal and development projects.
Don Currie is the Chief Executive Officer and Company founder. He has 30 years of experience building and financing private and public companies. Since 1993 his primary focus has been the oil industry. Over the course of his career he has directly and indirectly raised over $125 million. Currie was a director and Vice President of Enhanced Oil Resources from 1993 to 2014. Enhanced found the second largest CO2 field in the United States.
Hillcrest trades on the TSXV as HRH and on the American OTCQB as HLRTF. As of September 5, 2017 it closed at $0.07 and has a 52-week high of $0.10 and a low of $0.035. The company has 74.59M shares outstanding and a market capitalization of $5.22 million.
The Momentum PR informative and comprehensive report on Hillcrest is available on the Momentum PR website.
If you would like more information on Hillcrest Petroleum Ltd.; listed on the TSX Venture exchange under the symbol HRH or would like to arrange an interview with management please contact:
Momentum PR
Juliette Benard, Director Media Relations
+1.450.332.6939
About Momentum PR
Momentum PR is a cutting-edge public and investor relations consulting agency representing companies within the Canadian investment community.
Since 2009, Momentum PR has been servicing small and mid cap Canadian listed public companies, seeking to increase their exposure across North America. The focus at Momentum PR is on building and driving brand awareness. Momentum PR cultivates new audiences in the media and investment communities by proactively engaging interested parties on behalf of client companies through online and offline channels.
Disclaimer:
All editorial content contained herein is solely the responsibility of Momentum PR and does not reflect, in any way, the opinions of TheNewswire.ca Inc., its partner newswires and / or associated news services.”
- Published in Energy, Hillcrest Petroleum, Mining, News Home, Oil and Gas
Hillcrest (HRH:tsxv) Signs Merchant Banking Agreement
Hillcrest Signs Merchant Banking Agreement
Momentum Public Relations
Press Release: August 22, 2017
Hillcrest Petroleum Ltd. (the ” Company ” or ” Hillcrest “) is pleased to announce that the Company has signed a Merchant Banking agreement with WC Capital Inc, an Ontario based organization. WC Capital Inc is an affiliate of Wade & Company, a private family office investment firm and merchant bank, managed by a successful team of investors and entrepreneurs with a breadth of experience across different sectors. WC Capital Inc and Wade & Company specialize in various lending products, direct investment and advisory services.
WC Capital Inc, through their network, will provide assistance in identifying potential business dealings and partners, early stage legal review of all potential business dealings, potential direct or indirect investment in any deals under review or acquired and will assist in expanding the profile of Hillcrest within the circle of their investment community. The agreement between Hillcrest and WC Capital Inc is for a term of 1 year with potential renewals available. The agreement is subject to acceptance of the TSX Venture Exchange.
“This agreement represents a giant step forward for Hillcrest as we search for and review transformational deals for the Company .” Don Currie, Hillcrest Petroleum CEO, states: “WC Capital together with Wade & Company provide Hillcrest with financial advisory services, early stage legal review and assistance as well as potential investment strength, which are all critical needs for junior listed companies in early stage negotiations. With a number of acquisition targets under review, the support and services provided by WC Capital Inc is expected to give Hillcrest an increased ability to quickly assess and potentially acquire assets. The Company will update its shareholders as we progress towards any potential purchases or joint ventures.”
For more information on Hillcrest Petroleum Ltd, contact Don Currie toll free at 1-855-609-0006 or visit the Company’s website at www.hillcrestpetroleum.com
ON BEHALF OF THE BOARD
Donald Currie
Chief Executive Officer and Director
- Published in Hillcrest Petroleum, Mining, News Home, Oil and Gas
Hillcrest Obtains Alberta Energy Regulator Operator License Approval
Hillcrest Obtains Alberta Energy Regulator Operator License Approval
Momentum Public Relations
Press Release: July 26, 2017
VANCOUVER, B.C. / TheNewswire / July 26, 2017 – Hillcrest Petroleum Ltd. (the “Company” or “Hillcrest”) is pleased to announce that the Company has been approved by Alberta Energy Regulator (AER) to Operate oil and gas assets in Alberta. This is an important step for Hillcrest to move forward with the Alberta part of its work program to re-establish production from oil and gas assets in Alberta and Saskatchewan under its recently announced Joint Venture Agreement.
As previously announced May 10, 2017, Hillcrest signed a binding Joint Venture Agreement (the “JV Agreement”) with a Canadian oil and gas company (“Juniorco”) whereby the Company, via a wholly owned subsidiary, will earn up to a 75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Working Interest and Operate two petroleum assets located in Western Canada (the “Fields” or “Assets”). The Company expects to restore combined production from the Fields to approximately 400 barrels of oil per day (“bopd) by providing capital funding and technical expertise.
The JV Agreement is consistent with the letter agreement initially signed by the parties and announced on February 21, 2017. Select Primary terms of the JV Agreement are as follows:
-The Company, appointed as operator, will earn up to 75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Juniorco’s Working Interest in the Fields by contributing technical expertise and funding to restore production from the Fields. Hillcrest’s Working Interest will revert to 50{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} once the Company has recovered all production restoration costs from the production revenues. Gross production from both Fields collectively is expected to be approximately 400 bopd upon restoration.
-Hillcrest has arranged third party project funding, and these funds are to be provided on a non-dilutive basis to Hillcrest shareholders. Total project funding, including the placement of Operator deposits and Licence Liability Rating (LLR) Bonds, is estimated to cost CDN$2,200,000. Project funding will be secured by both the Assets and the Company.
-Approximately CDN$900,000 in project costs is required to re-establish production from the Fields by way of equipment installation and upgrades, and well work-overs. These projects are expected to reduce operating expenses and restore production, thereby increasing the operating netbacks.
-Project costs include the placement of approximately CDN$1,300,000 in LLR Bonds. The Company expects to recover these LLR Bonds once economic production from the Fields has been re-established for a certain period of time, thereby substantially reducing the net investment in the project.
-This transaction is subject to TSX Venture Exchange approval.
“The first step required to move forward with restoring production has been reached.” Don Currie, Hillcrest Petroleum CEO, states: “Being approved as operator in the Province of Alberta was required for Hillcrest too coordinate work programs with local service companies and vendors. The Company will update the shareholders as we progress towards production of the assets.”
For more information on Hillcrest Petroleum Ltd, contact Don Currie toll free at 1-855-609-0006 or visit the Company’s website at www.hillcrestpetroleum.com
ON BEHALF OF THE BOARD
Donald Currie
Chief Executive Officer and Director
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2017 TheNewswire – All rights reserved.
- Published in Hillcrest Petroleum, News Home, Oil and Gas
Hillcrest Announces the Closing of the Second and Final Tranche of the $0.07 Unit Non-Brokered Private Placement
Hillcrest Announces the Closing of the Second and Final Tranche of the $0.07 Unit Non-Brokered Private Placement
Momentum Public Relations
Press Release: July 14, 2017
VANCOUVER, B.C. / TheNewswire / July 14, 2017 – Hillcrest Petroleum Ltd. (the “Company”) (TSX-V: HRH) (OTCQB: HLRTF) announces that it has closed the second and final tranche of its non-brokered private placement (the “Offering”) originally announced on May 10, 2017 with updated announcements on June 29, 2017 and July 7, 2017.
Aggregate proceeds of $112,000 were raised on this second tranche closing, and 1,600,000 units (the “Units) at a price of $0.07 per Unit were issued. Each Unit to this second tranche consists of one common share in the capital of the Company (a “Share”) and one-half of one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional Share at a price of $0.10 per Share until July 14, 2019.
The securities issued in connection with the second tranche is subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation expiring on November 15, 2017.
There were no finder’s fees paid on the second tranche closing.
Together with the proceeds raised on this second tranche closing, and of the previous tranche closing (see press release of July 7, 2017), an aggregate of 5,594,857 Shares have been issued for aggregate total proceeds of $391,640.
The proceeds received from the Offering will be used to retire the remainder of the secured debt, licensing and registration costs in both Saskatchewan and Alberta and for general operation and expenses.
For more information on Hillcrest Petroleum Ltd, contact Don Currie toll free at 1-855-609-0006 or visit the Company’s website at www.hillcrestpetroleum.com
ON BEHALF OF THE BOARD
Donald Currie
Chief Executive Officer and Director
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2017 TheNewswire – All rights reserved.
- Published in Hillcrest Petroleum, News Home, Oil and Gas
Hillcrest Petroleum Closes First Tranche Of Private Placement
Hillcrest Petroleum Closes First Tranche Of Private Placement
Momentum Public Relations
Press Release: July 7, 2017
VANCOUVER, B.C. / TheNewswire / Hillcrest Petroleum Ltd. (the “Company” or “Hillcrest”) announces that the Company has closed a first tranche of its $500,000 non-brokered private placement (the “Offering”) originally announced on May 10, 2017 with an update announcement on June 29, 2017.
Aggregate proceeds of $279,640 were raised on this first tranche closing. 3,994,857 units (the “Units”) at a price of $0.07 per Unit were issued. Each Unit consists of one common share in the capital of the Company (a “Share”) and one-half of one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional Share at a price of $0.10 per Share until July 7, 2019.
There were no finder’s fees paid on this first tranche closing.
All securities issued in connection with the Offering are subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation expiring on November 8, 2017.
The net proceeds received from the Offering will be used to retire the remainder of the secured debt, licensing and registration costs in both Saskatchewan and Alberta and for general operation and expenses.
The balance of the Offering is expected to close on or before July 14, 2017.
For more information on Hillcrest Petroleum Ltd, contact Don Currie toll free at 1-855-609-0006 or visit the Company’s website at www.hillcrestpetroleum.com
ON BEHALF OF THE BOARD
Donald Currie
Chief Executive Officer and Director
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2017 TheNewswire – All rights reserved.
- Published in Hillcrest Petroleum, News Home, Oil and Gas
Update on the Oil Crisis in Canada and Abroad
Update on the Oil Crisis in Canada and Abroad
– Momentum Public Relations –
According to financial prognosticators the recession that recently hit Canada will continue to affect Canadians; particularly those who live in Calgary and Edmonton. For instance, according to the Conference Board of Canada, Edmonton’s economy will contract by an additional 1.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in 2016, while Calgary’s economy is expected to shrink by an additional 1.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year. The continual decline in the two cities economies can be attributed to the decline in the price of oil, and the impact of the steep drop has trickled into other sectors of the economy as well.
Furthermore, job loss numbers are also expected to increase in 2016, as Calgary will suffer from an additional 2.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} loss in employment growth, bringing the overall unemployment rate to 7.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year. Alarmingly, the 7.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} unemployment rate is actually higher than the national average, a figure that Calgary has not hit since 1987. Moreover, the sectors that are expected to get hit the hardest by the steep decline in oil prices are the trade and construction industries respectively.
Residents of Edmonton will also not fare that much better, as unemployment rates are expected to hit 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year; an almost 2 decade high. It should also be noted that the real estate market will also take a subsequent hit from the massive layoffs, as the excess of office space created by all the layoffs will discourage investments in non-residential construction as well as office buildings. De facto, pundits expect a 33{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop in housing starts in Edmonton in 2016, while Calgary can expect a housing start drop of 18{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year.
What’s more, on March 3rd, 2016, Canadian National Resources Ltd reported an 89{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop in quarterly profit ($131 million), due mainly to the steep decline in oil prices. Canadian National Resource Ltd is Canada’s second largest gas and oil producer, and the enterprise is currently projecting capital expenditures ranging from 3.5 to 3.9 billion dollars, in stark comparison to the 4.5 to 5 billion dollar range that they projected in 2015. Annual production values of oil are also expected to drop by 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year in comparison to last year, and the Calgary/Alberta based entity’s share prices dropped to 12 cents per share in Q4 2015, compared to $1.09 per share during the same period in 2014. In sum, Canadian National Resources Ltd reported that revenues fell by 36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to 2.79 billion dollars.
Moving beyond the dire economic situation currently facing Edmonton and Calgary, airplane manufacturing is also expected to take a severe hit from declining oil prices. For instance, airplane retirements for Boeing and Airbus fell to only 28 in Q1 of 2016, compared to 104 in Q1 of 2015. In other words, the decline in oil prices has led to a reduction in demand for more energy efficient aircrafts, because they are currently not seen as a priority from a cost perspective.
Globally, the latest numbers indicate that over one million barrels are being oversupplied every day. That is, the oversupply is being caused by the fact that there are insufficient storage areas to store oil. In fact, the situation has become so dire that some experts are suggesting that pumped oil be stored in swimming pools due to insufficient storage spaces. In addition, oil tankers are also being sent on longer voyages to help reduce tanker pile up debacles at junction ports, as 50 oil tankers are currently remaining stationary in the port of Rotterdam, which is the highest figure being reported since 2009. A similar situation is currently taking place in the United States’ largest oil hub, which is based in Cushing, Oklahoma.
The marked drop in crude oil prices has also forced ExxonMobil to cut its capital spending to only 23 billion this year; a 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop from the previous year. Russia has also been hit hard by the oil crisis, as the country is currently trying to recover from its own recession. In fact, automotive sales dropped by 36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} last year, and massive layoffs in plants like the Avtovaz plant in Tolyatti have forced many workers to leave their homes and move in with their parents to make ends meet.
Unfortunately, the global oil crisis is expected to get worse in the future, as many experts believe that the increase in the adoption rates of electric cars will further reduce the demand for gas guzzling vehicles. To learn more about how electric cars can exacerbate the oil crisis please visit here.
- Published in Blog, Business, Energy, Oil and Gas
Nation Builders – Welcome to 21st Century Realities
Nation Builders – Welcome to 21st Century Realities
– Momentum Public Relations –
Energy East proponents and old-style politicians take note. It is not business as usual. Gone are the days when a small group of corporations, lobbyists, and elected politicians can stack the approval process for big projects and then let the inevitable unfold.
Investors should also take note when evaluating their options. Companies that have failed to understand the changing landscape could be a sub-optimal investment. There is a premium on listening and crafting a coherent message that connects with real people. Failure to realize the emerging power of small groups who are passionate about an issue can derail a project and compromise an investment.
When it comes to big projects, Prime Minister Justin Trudeau did not invent the concept of “social license”. He is merely among the first to acknowledge that there is an entirely new way of operating. Any organization or politician that advocates for significant change to the status quo needs to take note.
The ongoing, and increasingly rancorous, Energy East pipeline project debate continued this past week. A meeting was held this week in Montreal between the Prime Minister and the Mayor of Montreal. Edgy tweets were exchanged between various municipal and provincial politicians, each with their agenda.
One group of people, comprised mostly of politicians and corporate entities that advocate for the pipeline proposal, are asking Canadians to think like “nation builders.” Images and comparisons abound that call to mind the nineteenth-century pioneer visionaries who are alleged to have had the foresight and determination to forge a country by building the Canadian railroad. The problem is that this is a different century, and the Energy East pipeline project has precious little in common with the early days of the Canadian Pacific Railway, other than a healthy dose of hubris and the odor of corporate entitlement.
The second group of people, a somewhat diverse cohort, are generating some increasingly active opposition to the proposed pipeline project. They include mayors, provincial politicians, and environmental advocacy groups. Their concerns center around two primary issues. The first is that a valid assessment of environmental impact ought to be completed. The second is more bread and butter. There are a variety of questions about the project’s economic benefit to specific communities in places like Ontario and Quebec.
Pro-pipeline politicians and pundits suggest that tough choices must be made to cater to the greater good. Canadians are being advised that we can’t allow a collection of individual communities to dictate the pace of progress. Progress, as defined by the pro-pipeline folks, is all about a hollow pipe that carries oil from one part of the country to the other. Ironically, most agree that the oil in question is a temporary energy solution that must eventually be met by other technology because it is a finite resource that has the potential to have a significant impact on the environment in the medium term.
A great deal of horror has been expressed about the fact that a handful of small town mayors in Quebec can stand in the way of a major investment in infrastructure. Welcome to the 21st Century! This is how it done now. Real people do matter. An individual’s influence is no longer tied to their pedigree or to the office they hold. It is tied to their ideas, their ability to communicate, and their grasp of 21st-century communication tools and platforms. Companies should take note. The tone deaf way TransCanada has handled this issue should become an MBA case study for how to bungle a communications strategy.
It should be quite clear that we’ve undergone an “era-shift”. This is far more profound than a generational change. In an era shift, the many of the foundational structures of society change. This is particularly true in matters of politics. Hierarchy is not dead, but it is increasingly irrelevant. This is the era of everyone communicating with anyone they want on Facebook, Twitter, and the ubiquitous instant message. When Taylor Swift posts a photo on Instagram, a million people know all about it. Lilly Singh can put something on YouTube, and her 7.7 million subscribers lap it up. Malala Yousafzai, a girl from rural Pakistan, can win a Nobel peace prize advocating for education for young girls and millions more tune in. It doesn’t matter who you are; you can be heard. One passionate person can truly make change happen.
Sure, Canada does have some choices to make. They are choices that require leadership. The challenge is that they need a whole different kind of leadership because we are in a completely different era. Old-style leaders “declare”. Old-style leaders were trusted because they seemed smarter than us, or they simply knew more than we did. New-style leaders listen. They understand the reality that engagement and conversation work more effectively than grandstanding or lecturing. They also know how to use social media effectively.
Gone are the days of carefully crafted campaigns to influence a finite and measurable group of influential decision-makers. Welcome to a new era. It is the era of individual power. Anyone with an opinion and a cell phone can have a voice. Jenny McCarthy can claim to understand the science of vaccinations and, strangely, people believe her. Individual citizens are capable of being tsunami-like disruptors of traditional political processes; particularly if it is all about a pipe carrying oil that is slated to run past their backyard.
What is being accomplished by the current debate? The revamped approval process that the Liberal government in Ottawa announced this week bought some time for TransCanada Pipelines to fine-tune their proposal and their communication strategy. The company needs to invest in engaging all potential stakeholders. They need to recognize the changing perceptions of the public and the shift that is happening in the political landscape.
Can big projects still move forward? Is nation building still possible? Can a national consensus be achieved for Energy East? To a large extent, this all hinges on the recognition by companies and politicians that things have changed in a big way in the 21st century.
- Published in Blog, Energy, Oil and Gas
Trudeau’s Sunny Ways – Meet Tough Choices
Sunny Ways – Meet Tough Choices
– Momentum Public Relations –
Sunny Ways. Newly elected Canadian Prime Minister Justin Trudeau loves to communicate using language that fosters little disagreement. Who doesn’t want sunshine and happiness? In politics, at some point, there is a need to set aside the happy talk and make tough choices. Tough choices can include disappointing some people to do the right thing. Tough choices require being prepared to abandon small thinking so that bigger goals can be achieved. If a country wants to be a real country, then it can’t behave like a collection of small fiefdoms. Canada has some tough choices to make. These choices will identify if Canada wants to act for the benefit of the whole country or if it is content to behave like a big family where every child can get what they want the way they want it.
Energy East, the proposal by TransCanada Pipelines is precisely the sort of issue that provides Canada with an opportunity to make tough choices and behave like a country. It is a project that has an overall national economic benefit. It can be completed with little impact on the environment. It is far less risky than transporting trainloads of oil through the center of densely populated cities and towns. The proposed 4,600-kilometre pipeline will stretch from central Alberta to a terminal in New Brunswick and could carry slightly more than one million barrels of crude oil per day. The current proposal calls for an existing natural gas pipeline to be converted to allow for oil transportation, and it includes some new pipelines in a few areas to complete the route. It will provide Canada with the ability to supply western oil to eastern markets and, additionally, bring its oil to the world market.
Mr. Trudeau has argued that the role of the Canadian Prime Minister is to avoid the trap of becoming a “cheerleader for pipelines” but to ensure that an effective process for reviewing proposals is followed. This is easier said than done. Therefore, this file may prove to be the first serious test for the honeymoon period that the Mr. Trudeau is enjoying with Canadians.
On January 26, 2016, Mr. Trudeau held a meeting in Montreal with Mr. Denis Coderre, the mayor of Montreal. The stated purpose of the meeting was to have a discussion about the proposed pipeline. The underlying purpose, however, was to ensure that the mounting opposition in Quebec did not continue to grow and to ask the mayor of Montreal to moderate the tone of the comments that he had been making as the spokesman for 82 Quebec municipalities that oppose the pipeline proposal.
Based on the post-meeting news conference, it would appear that rational thought, or good political skills, prevailed. Both politicians are reasonably astute at reading the public mood. Both understand the need avoid taking extreme positions. Neither man is inclined towards political suicide. Furthermore, the mayor of Montreal and the Prime Minister of Canada are political allies, so they probably agreed, behind closed doors, that it was unwise for either of them to paint the other one into a corner. Given that they are both staunch federalists, they also likely agreed that any public rancor between them plays directly into the hands of PQ leader Pierre Karl Peladeau and would provide the somewhat dormant separatist issue with a rallying cry. This is something that neither of them is keen to do, preferring to avoid giving Mr. Peladeau an issue that could allow him to claim that Quebec is being marginalized.
In their discussion on Tuesday, it is likely that Mr. Trudeau underlined his belief that business propositions, like pipelines, are subject to due process and a comprehensive environmental assessment. It is also likely that Mr. Coderre shared that Quebec municipalities are questioning some elements of the approval process. He also may have repeated comments made by Quebec Premier Philippe Couillard that, without a terminal in Quebec, there appears to be no way to assess the economic impact of the proposed project for the province. Furthermore, there was certainly some discussion of how to address some of the shrill concerns that are being raised by environmental groups, many of whom are opposed to anything that involves fossil fuel extraction, transportation or marketing.
What did this meeting accomplish? It may have bought some time for TransCanada Pipelines to fine-tune their proposal. The company may have underestimated the importance of engaging all potential stakeholders. They need to recognize the changing perceptions of the public and the shift that is happening in the political landscape. It may have also bought some time for Mr. Trudeau to make a few adjustments to the overall approval process. He has been stridently critical of the way these projects were reviewed in the past. Now he has the opportunity to do something about it. Finally, it bought some time for some behind the scenes discussions with a variety of municipal and provincial politicians that will allow the rhetoric to be dialed down and good sense to prevail.
Any project of this scope needs to be thoroughly assessed. A full understanding of the environmental impact must be considered. The business metrics must also be evaluated in the light of an understanding of the changing worldwide market for petroleum products. In the end, however, countries are built when the interests of the whole matter more than the preferences of regions or special interest groups.
What tough choices will Canada make? Let’s hope they are the right ones. If they are, we will likely continue to enjoy “Sunny Ways”.
- Published in Blog, Business, Energy, Oil and Gas