5Q: David Black, media mogul and wannabe oilman

If you were to draw a pie chart of how David Black splits his time, there would be few slices. It's almost always business, says the 67-year-old founder of Black Press Group Ltd, Canada's largest privately-held newspaper publisher.
 
Instead of golfing and sailing excursions, or even tinkering in the day-to-day operations of his newspaper empire that now boasts more than 170 titles in Western Canada and some parts of the United States, the Victoria, B.C.-based businessman is trying to muster support for his idea to build a $25-billion oil refinery near Kitimat, B.C., which he officially announced in 2012.
 
The idea is simple, says Black, holding two jars of bitumen -- one raw, one diluted -- inside his waterfront home office. Nobody wants to export raw bitumen, but there's a big market in China for it where it is fueled by economic growth and a rise in auto sales, so why not refine and make it safer for shipment, says Black.
 
Black hopes the biggest chunk of funding will come from China and Ottawa. Not surprising then his plan has gotten mixed reviews. The idea has been dubbed everything from "pretty nuts" to "tantalizing," which is exactly the kind of buzz Black should want pitching his bold plan.
 
He's gotten a lukewarm reception from Alberta's oil clique, but his idea has more or less been endorsed by B.C. Premier Christy Clark. During a joint press conference this week with Alberta's Premier Alison Redford on the controversial topic of oil pipeline development such as Enbridge’s proposed Northern Gateway project, Clark touted the idea of the refinery as being a project that could add some 3,000 jobs to the economy.
 
How did you come up with this idea?

I own all these newspapers in Prince Rupert, Kitimat, Terrace -- I don't know if you know that country -- Smithers, Houston, Burns Lake. I was reading that the Northern Gateway pipeline was ramping up. I thought, I'm not in favour of putting bitumen in all those tankers and we don't have to.
 
You are a newspaper man. How has your idea been received by the oil industry?

I don't blame them for being skeptical. If an oil guy walked in here and told me he knew how to run my newspapers better than I did I wouldn't listen to him very carefully. I understand I'm an outsider.  
 
Have they warmed up to you?

The majors all have their own agendas. In this case, they just don't want to do a refinery. Almost all our big companies are owned by parent companies outside Canada. They've got their own refining facilities. The people there (in Alberta) understand why the majors aren't doing it. They don't regard that as an indication that the plan isn't workable.
 
If the oilpatch here isn't interested then who are you targeting?

It's pretty straightforward. The Chinese want the refined fuels and they're willing to give us most of the money to build a refinery. I believe the federal government will put up the rest.
 
You want $8 billion from Ottawa. Tell me more about that

I've had discussions with them. There's certainly no indication they'll do that. What they have said is that my ask is in line with the precedence. There's no reason why they would say no. They don't tend to put up cash. They guarantee bank loans.
 
How confident are you they'll say yes?

I'm quite confident. This West Coast pipeline and the East Coast pipeline are the most important issues right now in Canada's economic future. We're going to end up with landlocked oil if we don't get some pipelines.
 
This is a topic that was a priority in the throne speech. What does that say to you?

They've flooded the area with cabinet ministers in the past two months. It's certainly high on their agenda. There won't be a pipeline built in B.C. unless there is a refinery involved.
 
Why not?

British Columbians don't want bitumen put into tankers because if there were ever were an accident it's a mess. You can't clean that stuff up. We saw it with Exxon Valdez. If we refine it first -- and, by the way, keep the jobs here -- if there is ever an accident with refined fuels (gasoline, diesel and jet fuel) it floats and evaporates.
 
Is this idea purely motivated by environmental concerns or is it a pure profit play?

I got into it because I don't want to see the bitumen in the tankers. And I'm at the end of my career pretty much. I'm 67. I'm not in this for the money. There's no, I'd like to get my money back. I've put a few million into it and it'll be a few million more. I see this as a little bit of a legacy.
 
Does your family agree?

I raised it with the children before I went public. They said, oh Dad, don't get into the oil business, it'll tar our name. We talked it through. It took a weekend and they came around to my point of view.
 
Switching tracks, a lot of change in the newspaper industry. Do you think it's adapted well to being online?

The industry mishandled it. At the beginning, everybody thought the important thing was to get the biggest website and we'll get all the advertising. So everybody did it for free. The trouble was the advertising didn't really follow.
 
Why not?

It doesn't really work very well for advertisers. When you read a paper or a magazine, one of the reasons you pick it up is for the advertising. When you get a pop-up ad, you're pissed. It's how do I get rid of it.
 
What does the newspaper industry look like in the future?

I think for the next 20 years newspapers will survive. That's as far as my crystal ball goes. The reason is people 50 and up are reading newspapers today and they'll keep the habit. The generation that is 30 and 40? I'm not so sure.
 
Back to energy. Can building an oil refinery really be your hobby?

I've got a little island where I can escape on the weekends and chop wood and do things like that, work the stress out.