Approximately 5.9 million barrels of oil were extracted from offshore Newfoundland and Labrador in March 2024, nearly on par (-0.3%) with the production level of March 2023. The corresponding value of production increased by 7.6%. Production declined at the Hibernia and Hebron projects, compared to the same month last year, but increased at Terra Nova. The Terra Nova floating production, storage, and offloading (FPSO) vessel, which interrupted its operations in late 2019 to undergo an overhaul, resumed production in November 2023. Production was suspended at the White Rose oilfield in January 2024 as the SeaRose FPSO vessel sailed to Belfast, Northern Ireland, to undergo a refit as part of the White Rose field’s asset life extension project. Production at the White Rose field is expected to restart in the third quarter of 2024.

Brent crude oil prices averaged US$85.41/barrel in March 2024, up 8.9% from US78.43$/barrel in March 2023. Recent developments in the global oil market reflect supply cuts by the Organization of the Petroleum Exporting Countries and partner countries (OPEC+) and geopolitical concerns. The ongoing Russia-Ukraine war and the risk of a wider conflict in the Middle East are acting as a floor against lower crude oil prices. More recently, revived concerns about the outlook for U.S. oil demand have weighed down prices. During the last twelve months, Brent crude oil has traded roughly between US$75/barrel and US$94/barrel.

Countries of the OPEC+ group reduced their crude oil production by an estimated 1.4 million barrels per day in 2023, according to the Energy Information Agency. Several production cuts that were announced in 2023, such as from Saudi Arabia and Russia, were extended into the first half of 2024. The intent is to support a higher price level by avoiding a global excess supply of crude oil and to prevent increases in global oil inventories.

The estimated value of Newfoundland and Labrador’s crude oil output is in Canadian dollars; the average Canada-US exchange rate in March 2024 stood at 73.9 cents/US dollar, compared to 73.1 cents/US dollar in March 2023.

On a year-to-date basis, approximately 18.0 million barrels of oil were extracted from offshore Newfoundland and Labrador over the January to March 2024 period, down 5.5% compared to the same period last year. The corresponding value decreased 3.6%.

Further information on the province’s oil and gas industry is available in The Economy 2024 (see Oil and Gas section).