Today, the Honourable Dwight Ball, Premier of Newfoundland and Labrador, and the Honourable Siobhan Coady, Minister of Natural Resources, along with representatives from Noia, the Canadian Association of Petroleum Producers, Memorial University, Newfoundland and Labrador Environmental Industry Association and TradesNL unite in their support for the province’s offshore oil and gas industry and its valuable role in the global energy mix.
The province and the offshore oil and gas industry has undergone tremendous challenges with the impacts of COVID-19.
The Government of Newfoundland and Labrador has asked the Government of Canada to invest in our offshore oil and gas industry. The Government of Newfoundland and Labrador shares the Federal Government’s goals of environmental protection and reducing carbon emissions, including for the oil and gas sector, and has committed to achieving net zero by 2050.
Supporting Newfoundland and Labrador’s offshore oil and gas industry is essential to supporting a sustainable low carbon economy and clean energy resources. The province’s offshore projects are already among some of the lowest carbon intensity emitting facilities in the world.
The importance of the offshore oil industry to the economy of Newfoundland and Labrador cannot be overstated nor replaced by any other sector. The economic benefits related to the offshore industry accounted for nearly 30 per cent of Gross Domestic Product (GDP) between 2010 and 2017.
The responsible choice is to invest in the Newfoundland and Labrador offshore. We can further reduce greenhouse gas emissions by making immediate investments and set the stage for this province to become a leader in clean energy.
Recent correspondence to Prime Minister Trudeau from Premier Ball and The Council of Atlantic Premiers can be found here and here respectively.
Further facts regarding the value of the offshore oil and gas industry in Newfoundland and Labrador are provided in the backgrounder below.
Quotes
“This is an unprecedented time for the people of our province, the country and the world. COVID-19 is having a dramatic effect on our offshore oil and gas industry – an industry that has an immensely positive impact on the families and businesses of Newfoundland and Labrador. With our oil and gas industry representing such a significant portion of the provincial economy, the time is now to act and put measures in place so we can continue to deliver vital health, education and social services to Newfoundlanders and Labradorians.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador
“With four major producing projects, the offshore oil industry contributes significant value to the global supply chain. We have approached the Federal Government to enhance financial liquidity and accelerate exploration. It is vital that we get their support now to ensure the province’s low emission production can continue to be part of the global energy mix.”
Honourable Siobhan Coady
Minister of Natural Resources
“Our offshore oil and gas industry is in crisis, thousands have lost their jobs, and Noia members fear for their future. We need the Government of Canada to provide us with immediate and specific help. While the challenge is unprecedented, the solutions are not, and have been used before in our offshore. Support is needed now so we can be globally competitive and lead the transition to renewable energy mixes and achieve net-zero carbon emissions by 2050.”
Charlene Johnson
Chief Executive Officer, Noia
“The success of Canada’s offshore oil and gas industry is not just critical to the economy of our province, but is also a centerpiece of our clean growth strategy. It is within our reach to set the global environmental standard for the offshore industry, and the solutions we develop here can be exported worldwide for the betterment of the planet. There are opportunities for immediate investments that can reduce greenhouse gas emissions, and set the stage for Newfoundland and Labrador to become an international leader in offshore clean tech.”
Kieran Hanley
Executive Director, Newfoundland and Labrador Environmental Industry Association
“Our industry is facing some of the biggest challenges we have ever experienced. There is a critical and urgent need for the Federal Government to invest in our offshore oil and gas sector to help overcome these challenges and to position the province for success. With the right supports and policies, we have an opportunity to make Newfoundland and Labrador a place where companies want to do business as they revisit their capital plans worldwide and make crucial investment decisions that could benefit the province for decades.”
Terry Abel
Executive Vice President, Canada Operations and Climate, Canadian Association of Petroleum Producers
“Collaboration between government, industry and universities is key to solving real world problems, and in the current environment that has never been more true. Memorial will continue to be a partner in the development and success of this province’s offshore oil industry by educating highly qualified professionals and leading innovative research and development to make the ever-evolving industry safer and more sustainable.”
Dr. Vianne Timmons, OC
President and Vice-chancellor, Memorial University
“Since the inception of the oil and gas industry in Newfoundland and Labrador, with Federal Government support of the Hibernia project, there have been more than 20,000 construction jobs from communities all across our province, leading to a world-class workforce known internationally for their quality, productivity and safety achievements. Today we require assistance once again to ensure those individuals and families depending on continued work with current and planned oil and gas developments are not let down and left behind.”
Darin King
Executive Director, Trades NL
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Learn More:
Canadian Association of Petroleum Producers
Newfoundland and Labrador Environmental Industries Association
Follow us on Twitter: @GovNL and @NR_GovNL
Media Contacts
Jeremy Reynolds
Office of the Premier
709-729-3558
jeremyreynolds@gov.nl.ca
Lisa Lawlor
Natural Resources
709-631-8155
lisalawlor@gov.nl.ca
Ken Morrissey
Noia
709-725-5172
kmorrissey@noia.ca
Kieran Hanley
Newfoundland and Labrador Environmental Industries Association
709-237-8190
kieran@neia.org
Jill Piccott
Canadian Association of Petroleum Producers
709-685-4812
jill.piccott@capp.ca
Dave Sorensen
Memorial University
709-685-7134
sorensen@mun.ca
Corey Parsons
TradesNL
709-832-5116
cparsons@tradesnl.com
BACKGROUNDER
Value of the Offshore Oil and Gas Industry in Newfoundland and Labrador
- All four Offshore Newfoundland and Labrador projects are among some of the lowest carbon intensity emitting oilfields in the world. Supporting Offshore Newfoundland and Labrador is a way to ensure some of the lowest emission production can continue to be part of the global energy mix.
- Newfoundland and Labrador has produced approximately 26 per cent of Canada’s conventional light crude oil and approximately 8 per cent of Canada total crude oil, cumulative from 1997 to 2019.
- 6,791 people directly employed on Newfoundland and Labrador oil and gas reporting projects (6,055 in the province), as of December 31, 2019.
- Paid more than $22 billion in royalties to Newfoundland and Labrador, cumulative from 1997 to 2019.
- Total (direct, indirect and induced) economic benefits related to the offshore petroleum industry in Newfoundland and Labrador accounted for nearly 30 per cent of GDP (from 2010 to 2017)
- Represented approximately 41 per cent of the value of total Newfoundland and Labrador exports, cumulative from 1997 to 2019.
- Approximately $62.7 billion in expenditures, cumulative from 1966 to 2018.
- Nearly $600 million spent on research and development; education and training since 2004.