(St. John’s, NL – January 9, 2025) Energy NL has made a submission to the Government of Canada Gazette 1 consultation process on the proposed Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations and has asked the federal government to abandon the regulations which sidesteps the Atlantic Accord and will effectively cap offshore oil production and greatly impact the Canadian oil and gas industry, the Newfoundland and Labrador offshore oil and gas industry, Energy NL members, Newfoundlanders and Labradorians, and all Canadians. The implementation of these regulations will erode the last shred of investment attraction left in Canada and leave not only valuable resources stranded, but significant financial benefits to all Canadians unrealized, while also leaving space for other jurisdictions to supply higher emitting and lower standard ESG oil to the world. Due to these serious impacts, Energy NL has serious concerns with the regulations and oppose their implementation.
“The approach taken by the Government of Canada with these emissions cap regulations will in practice function as a cap on production, resulting in a cap on jobs, a cap on revenue and royalties, and a cap on supplying lower-carbon oil to meet global demand. The Canadian oil and gas industry has been a leader in providing well-paying jobs to Canadians and significant revenues and royalties to governments, while funding and advancing research and development, and supporting our communities, yet these regulations unduly target our sector in a punitive manner. Any action that may lead to a curtailing of existing production or that discourages investment in new production is not acceptable to Energy NL.”
• Jeremy Whittle, Chair of the Energy NL Board of Directors
Energy NL obtained the assistance of Wood Mackenzie, a world leading global data and analytics solutions provider for renewables, energy, and natural resources, to understand the complex and convoluted regulations and their impacts on the Newfoundland and Labrador offshore oil and gas industry. Modelling by Wood Mackenzie suggests that to meet post-exemption emissions cap targets, operators would need to consider deferring start-ups or developing smaller projects phases (i.e. develop with less robust economics). In an already volatile commodity business, this places development potential at serious risk by creating investment decision paralysis and freezing out investment.
“Energy NL has heard from industry members locally, nationally, and internationally that the regulatory burden of Canada is substantial and the proposed emissions cap does nothing to alleviate this burden. Rather, this complex and convoluted cap exacerbates the regulatory burden and will undoubtedly send potential investment to other jurisdictions, likely with higher emitting oil and less stringent ESG practices. Energy NL fully supports efforts to lower emissions and achieve a net zero economy, and the lower-carbon oil offshore Newfoundland and Labrador is a leading contributor to these efforts. Energy NL also has grave concerns with the unilateral action taken by the Government of Canada to sidestep the Atlantic Accord and their apparent lack of regard for joint management of the offshore oil and gas sector. The federal government should be working collaboratively to bring governments, our economic sectors, and industry leaders together and incentivize the lowering of emissions. That will not happen through the Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations. Every Canadian deserves better than this approach.”
• Charlene Johnson, Energy NL CEO
Energy NL’s submission to the Government of Canada on the Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations can be found here.
Energy NL represents over 500 member organizations worldwide which are involved in the energy sector. Members are active in all areas of the supply and service sector and include a diverse representation of businesses that range from offshore supply vessels and helicopters, carbon reduction and sustainable technologies, health and safety equipment and training, engineering solutions and fabricators to law firms and human resource agencies.
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Media contact:
Ken Morrissey, Chief Strategy & Communication Officer
Mobile: 709-725-5172 |[email protected]| @WeAreEnergyNL
