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Commodity Pricing

Talks Continue on Offshore Aid Package, While Ottawa Keeps Focus on Existing Projects

Ottawa and St. John’s continue talking on an aid package for the offshore oil industry, but the industry says time is running out.

Natural Resources Minister Seamus O’Regan says he’s well aware of how important the industry is to the Newfoundland and Labrador with the net-zero emission target by 2050 as one of the key catalysts.

The high quality of the oil produced off Newfoundland makes it attractive to investors.

NOIA has been seeking an incentive package to encourage exploration offshore, but Minister O’Regan is focusing more on existing projects than ones that are not yet producing.

He says for the past few years, NOIA has been asking for a reduction in the amount of time it takes for approval of exploratory wells, which O’Regan notes is now down from 900 days to 90 days. Exploration incentives are not his priority at the moment.

Hibernia has laid off people, Terra Nova hasn’t produced for a while and the White Rose Extension is on hold.

Meanwhile, PC Opposition Leader Ches Crosbie and Natural Resource Critic David Brazil say they want the truth behind the “Liberal failure” to support the offshore.

Leader Ches Crosbie says that support is long overdue and the industry has lost millions of dollars.

Brazil states that he is also disappointed. He says over 20,000 people’s jobs depend on the industry and claims the Liberals are putting the jobs at risk.

Source: VOCM | This text was excerpted from the media outlet cited on July 22, 2020 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.