Newfoundland and Labrador will benefit from its “less emitting” oil during the energy transition and will “bet everything” on this sector which is essential to the local economy. This was supported by Prime Minister Andrew Furey in a speech to hundreds of energy sector executives and workers on Tuesday in Saint John.
We’re going to bet everything on oil and gas for decades to come
asserted Andrew Fureypassing through the congress Energy NLthe annual high mass of the provincial energy sector.
The transition from an oil-based economy to one based on renewable energy is well underway, but we will always need oil and gas. […] Our industry is not about to disappear
he added, also highlighting new renewable projects in development in Newfoundland and Labrador, including several wind turbine and hydrogen projects.
North Bay, essential
And necessary
Andrew Furey also insisted that Newfoundland oil is relatively cleaner than crude extracted in the tar sands. It is therefore, according to him, a green energy which will be coveted during the energy transition. This speech overlooks the fact that the vast majority of greenhouse gas emissions are produced during combustion.
The Liberal also underlined the importance of Bay du Nord, a project necessary
to the provincial economy, put on hold by the energy giant Equinor.
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The Bay du Nord project was put on hold by energy giant Equinor in May 2023. (File photo)
Photo: Equinor
The Prime Minister recalled the difficult struggle
carried out by his government to obtain approval of the federal environmental assessment of Bay du Nord, as well as the thousands of jobs and billions of dollars in royalties that the project could represent.
This project is essential for Newfoundland and Labrador, for Canada and for the planet
explained the liberal, recalling that Bay du Nord could represent 1 billion recoverable barrels of oil.
Economic dependence
In his own speech to Energy NL, Jim Keatingpresident and CEO ofOilCothe Crown corporation responsible for developing Newfoundland and Labrador’s oil and gas industry, highlighted the continued bonanza of fossil fuel extraction off Newfoundland.
In 2023, oil extraction represented 23% of GDP of the province, he said. The province projects it will receive $1.15 billion in oil royalties in 2024-25, or 11 per cent of all government revenues.
If the province promises to be carbon neutral by 2050, its energy transition plan is conspicuous by its absence, according to environmental groups and the NDP provincial. Andrew Furey raised the possibility of storing carbon in the Grand Banks on Tuesday, but such a project is far from coming to fruition.
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The Government of Newfoundland and Labrador has an interest in three oil projects, including the Hibernia platform. (Archive photo)
Photo: Radio-Canada
According to Jim Keatingthe seismic tests carried out by OilCo to stimulate exploration and development of new projects discovered oil reserves off the coast of Newfoundland and Labrador totaling 124 billion barrels. They also revealed the existence of 8.3 trillion cubic meters of natural gas.
THE CEO ofOilCo added Tuesday that the province earned $219 million in 2023, thanks to its participation in projects Hebron, Hibernia South And West White Rose. There is always money to be made by becoming a shareholder in oil projects
he argued.
The Prime Minister indicated Tuesday that his government had still not made a decision on the purchase of a stake in Bay du Nord.
Scott Tessierpresident and CEO of the agency regulating the provincial oil and gas industry, signaled Tuesday that the province and oil companies need to start looking at the environmental cleanup that will follow the end of life of the four oil platforms currently in production.
We need to start taking this obligation seriously
he indicated.
