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Commodity Pricing

K&D Pratt Gravely Concerned for Province’s Future Without Incentives for Offshore Industry

(St. John’s, NL, Canada – June 19, 2020) K&D Pratt has expressed grave concern for the economic future of the province without a solid investment from the Government of Canada in Newfoundland and Labrador’s offshore industry. The company fears that many of the supply and drilling companies currently doing business in Newfoundland and Labrador have become frustrated with the lack of of government support, and are looking to focus their operations in jurisdictions with a more favorable business climate.

K & D Pratt has a long and successful history in Atlantic Canada. For more than 95 years, the company has provided supplies and services to various sectors of the provincial economy. When acquired by Andrew Bell in 2003, significant efforts were made to focus on the much-needed demands of the growing offshore oil & gas industry. The offshore industry provided them with exceptional opportunities that otherwise would not have been available in Newfoundland and Labrador.

The recent economic circumstances have created an unprecedented crisis for those involved in the offshore oil & gas industry, and K & D Pratt is no exception. While the company began 2020 with goals of branching out within Atlantic Canada, Alberta and Guyana, these business ventures have since been deferred and even cancelled. These new opportunities would have brought money back to the province and created jobs for people in Newfoundland and Labrador. The future of the industry is now very bleak, and incentives are needed to ensure the industry can remain globally competitive and attract the scarce investment dollars that will be available when the crisis is over.

“We have heard first-hand from supply and drilling companies that are frustrated with the lack of federal government support for the offshore oil & gas industry,” said President Andrew Bell. “Without some form of an investment, such as exploration and tax incentives, the offshore industry, and ultimately the province, will experience immeasurable loss of future potential and opportunities, and it is just a matter of time before many international companies leave and no longer do business here. I am calling upon Prime Minister Justin Trudeau and Minister Seamus O’Regan to demonstrate strong leadership through consistent support of the offshore industry and business community.  This will provide a much-needed sense of confidence that Newfoundland and Labrador and Canada are favourable environments in which to invest and do business.”

From Noia | Issued June 19, 2020