The Honourable Jim Carr, Canada’s Minister of Natural Resources Canada, delivered a speech at the 2017 NOIA Oil & Gas Conference in Newfoundland and Labrador. The Government of Canada took this opportunity to reiterate the significance of Newfoundland and Labrador’s offshore oil and gas industry.
What success will look like:
The Government of Canada will:
- Continue to work closely with the Province of Newfoundland and Labrador and the Canada- Newfoundland Labrador Offshore Petroleum Board, industry and stakeholders to advance the offshore industry.
- Work together with the four Atlantic provinces through the Atlantic Growth Strategy to build a vibrant economic future for the region by focusing efforts and resources on stimulating the economy, supporting the middle class and capitalizing on current and emerging regional advantages.
Four projects produce oil in the Canada-Newfoundland and Labrador offshore area:
- Hibernia, operated by Hibernia Management and Development Company Ltd., began producing oil in 1997. On December 21, 2016, the company reached the major milestone of producing its billionth barrel of oil and is expected to produce over 1.6 billion barrels during its entire operating life.
- Terra Nova, operated by Suncor Energy, uses one of the largest floating production storage and offloading vessels ever built, approximately the size of three football fields laid end to end. The Terra Nova project has produced oil since 2002 and holds oil reserves estimated at 506 million barrels.
- White Rose, operated by Husky Energy, produced its first oil in 2005. The White Rose oilfield development (including the North Amethyst extension) involves recovering an estimated 479 million barrels of oil reserves. On May 29, 2017, the operator sanctioned its West White Rose development extension. At peak production, the project will produce approximately 75,000 barrels of oil per day in 2022, when first oil is expected.
- Hebron, operated by ExxonMobil, had its platform towed out on June 3, 2017, and is expected to begin oil production in late 2017. It is estimated to produce more than 700 million barrels of recoverable resources.
Newfoundland and Labrador produced 210, 259 barrels/day of oil in 2016.
Between 1997 and 2015, royalty payments of $20.2 billion were made to the province from offshore oil production.
4.4 billion barrels of oil (including natural gas liquids) and 12.5 trillion cubic feet of natural gas have been discovered in the Canada-Newfoundland and Labrador offshore area to date. (Source: Canada Newfoundland and Labrador Offshore Petroleum Board).
$3.7 billion in industry spending on exploration and development activities in Newfoundland and Labrador offshore area for 2015.
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