In advance of Prime Minister Justin Trudeau’s upcoming visit to Newfoundland and Labrador, Noia welcomes him to our province. As the federal and provincial governments are currently engaged in a review of one of the most fundamental documents to the offshore oil & gas industry, the Atlantic Accord, Noia calls upon the Prime Minister to respect the impact the Accord has had in allowing our industry to flourish and ensure these legislated benefits remain protected, and indeed enhanced, in any potential revisions to the Accord.
The Newfoundland and Labrador offshore oil & gas industry has provided tremendous benefits to the province, in no small part due to the Atlantic Accord which recognizes the province’s right to jointly manage and receive benefits from offshore resources as if they are located “on land, within the province.” Specifically, Section 2 of the Atlantic Accord ensures that Newfoundland and Labrador be the “principal beneficiary” of the offshore and Section 51 requires that Newfoundland and Labrador companies have “full and fair opportunity” to participate in the offshore supply and service industry. These agreed upon rights must be upheld and built upon, during the current review.
Noia’s economic impact study clearly demonstrates the profound value of our offshore oil & gas industry to the province, and indeed, the country. ImagineThePotential.ca highlights that our industry is by far the largest contributor to the Newfoundland and Labrador economy and forecasts future potential benefits of over $100 billion in royalties and taxes to the provincial government by 2045. Game-changing revenue such as this, along with the numerous other economic benefits highlighted in the study, exemplify why the Atlantic Accord is so important to Newfoundland and Labrador and the entire country.
Our industry is well-positioned to assist the Government of Canada in achieving their greenhouse gas reduction goals as our light sweet crude is 30 per cent below the global average for carbon dioxide emissions at extraction. As well, our industry is clearly attracting foreign direct investment, another objective of the federal government. In just the last three years, eight new exploration and production companies have entered the Newfoundland and Labrador market.
The Newfoundland and Labrador offshore oil & gas industry is a nation builder. This must be recognized during the Atlantic Accord review process. Noia and its members request that the tenets of the Accord which have been so instrumental in fostering an offshore industry for Canada be respected and any revisions enhance the outcomes for Newfoundlanders and Labradorians. Enhancements to the Accord should further allow for local companies to participate in the burgeoning industry and increase their presence and expertise. Supported by legislation and regulations which ensure the industry is globally competitive, there is no reason why the Newfoundland and Labrador industry cannot reach its potential.