Offshore Projects and Exploration in NL
Four oil projects produce offshore Newfoundland and Labrador:
- Hibernia, operated by Hibernia Management and Development Company Ltd.
- Terra Nova, operated by Suncor Energy
- White Rose, operated by Cenovus Energy
- Hebron, operated by ExxonMobil Canada
- Newfoundland and Labrador’s oil and natural gas industry provides employment opportunities for thousands — about 4,000 direct jobs and up to an additional 12,000 indirect jobs.
- The industry supports hundreds of supply and service companies.
- Cumulative industry expenditures in Newfoundland and Labrador from 1995 to 2019 totalled more than $50 billion.
- Cumulative royalties paid to the Government of Newfoundland and Labrador from 1998 to 2021 totalled more than $25 billion.
- Over $600 million spent on R&D and education and training in NL.
Growth Potential and Exploration Activity
Independent resource assessments commissioned by the Government of Newfoundland and Labrador estimate that in just 18 per cent of the province’s offshore there is a combined resource potential of 123.6 billion barrels of oil and 292.6 trillion cubic feet of gas potential.
In recent years the offshore industry has faced significant challenges due largely to COVID-19 and a related drop in demand for oil and natural gas, including deferred projects and low exploration levels. With one partially-constructed development project on hold, and a second potential development project awaiting sanction but deferred at present, the next several years are crucial to the future of Newfoundland and Labrador’s offshore oil and natural industry. It is critical that all parties work together to get stalled projects and drilling and expansion activities moving forward and to encourage additional exploration activity.
Newfoundland and Labrador has significant potential for further development and growth. Encouraging exploration activity will be key to unlocking this potential as it could lead to new discoveries and future developments.