So much has been said recently about the Bay du Nord project that it is difficult to say something truly new. Though, I believe there are two realities about this project that should be discussed openly now. One is Newfoundland and Labrador needs the Bay du Nord project. The second is the world needs the Bay du Nord Project.
Initial numbers for this project include an investment of approximately $12 billion US, 11,000 person-years of employment, and $3.5 billion in royalties and corporate income tax. That was the initial estimate from 2018 with calculations based upon about 300 million barrels in reserve and a lower price per barrel. It is commonly accepted that this project, with further discoveries since initial estimates, has reserves much higher, possibly upwards of one billion barrels. So, multiply that $3.5 billion in benefits to the province by three and you get over $10 billion in revenue. As pointed out by the report of the Premier’s Economic Recovery Team led by Dame Green, “considerable wealth will be stranded” if we do not sanction these types of projects. Not sanctioning Bay du Nord may very well strand Newfoundland and Labrador.
For this discussion, I will not get into the significant advancements the project will provide in terms of research and development, harsh environment expertise, philanthropic contributions to the wider community, and benefits to the supply chain. While drastically important, the list is too long for this blog.
Right now, I would like to discuss the second reality, the world needs this project. I fully support an evolution to renewable energies. Our world needs and demands it and I believe Newfoundland and Labrador will have a significant role to play. We need to make plans; we need to act. I believe we are, and I also believe the pace of this work and the developments that will come from it will hasten with each passing day. Yet, the world still requires most of our current forms of energy, specifically oil. Global demand is on the rise. As we recover from the past two years of a devastating global pandemic, leading experts say that demand is likely to continue growing for some time. And, at this moment, renewable energies cannot meet that demand. Their role is increasing, and their time will come, but it will take just that, time.
Oil has a role to play right now, and into the future. Energy poverty exists in our world. Upwards of one billion people – 13% of our world population – do not have access to electricity and three billion do not have access to clean fuels for cooking. That is significant. And, as our hearts and minds are now fixated on the situation unfolding in Eastern Europe, we know energy and energy politics is playing a significant role.
From the beginning of my time as Noia CEO I have said Canada needs to evaluate its domestic energy supply. The entire world needs to evaluate its energy supply. We need energy from nations where ESG principles are practiced and improved upon every day. Bay du Nord is a generational project, led by a company committed to ESG principles and producing energy to meet global demand via those principles. They are committed to doing so by the lowest carbon means possible. Canada is a country committed to ESG principles and the safety and security of all people. Canadian energy should be a leading light in energy politics and play a prominent role in offering solutions to the global energy crisis.
As we face a generational crisis, we need Bay du Nord, a generational project.
If you agree, I encourage you to share this blog with your friends, family, coworkers, and acquaintances. I encourage you to share your support for Bay du Nord and for energy security with your Member of Parliament.
We need Bay du Nord now, more than ever.