Published Sep 10, 2025
Last updated Sep 12, 2025
Canada is a resource-rich nation. We’re known globally as a trusted, responsible trading partner, and our natural resource industries — forestry, mining, agriculture and energy — have long formed the foundation of our national prosperity. But in today’s turbulent economic landscape, it’s time to reframe how we think about energy, and particularly offshore oil and gas.
This is not just a regional asset; it’s a national imperative.
In Newfoundland and Labrador, the offshore sector has been a cornerstone of the provincial economy for decades. One in every seven dollars spent by the provincial government comes from offshore royalties. The industry has delivered high-paying jobs, driven innovation and developed ports, infrastructure and supply chains that serve multiple sectors. From subsea technology to remote operations, this province has become a global leader in harsh-environment energy expertise.
Yet, we’re only scratching the surface.
The Bay du Nord Project represents the next phase for the offshore industry and a generational opportunity, not only for Newfoundland and Labrador but for all of Canada. Situated in the undeveloped Flemish Pass basin, it will be Canada’s first deep-water project and will represent a new frontier for the offshore oil industry. Success here could mean additional development and opportunities for decades. This project has the potential to revitalize our offshore industry, generate billions in economic activity, and position our country as a long-term player in meeting growing global energy demand.
The world needs oil and natural gas. That demand is not hypothetical. The global population is expected to rise by 1.7 billion by 2050. An analysis completed by RBC projects that in the next decade alone, the world will need the energy equivalent of another United States. Offshore oil and gas is one of the most economic and scalable ways to meet this demand.
This is not about choosing between the environment and the economy. It’s about doing both. Economic growth is what enables investment in the technologies that reduce emissions. It’s what funds our hospitals, our schools and our social programs. Canada’s
high standard of living is not possible without strong, competitive industries— especially in energy.
Over the past three years, oil and gas revenues delivered about $95 billion to Canadian governments. The supply chain stretches across the country, supporting over 900,000 jobs.
In Newfoundland and Labrador, this impact is especially visible, with benefits touching every corner of the province. The benefits don’t stop at our borders. Oil, natural gas and related exports make up over 20 per cent of the country’s total trade value, and in 2023, Newfoundland and Labrador shipped over $6.8 billion in crude oil, increasingly to European markets. This helps support the Canadian dollar, build our trade balance, grow our economy, and strengthen our hand when negotiating trade deals.
To build the energy future Canadians want — affordable, secure and with concern for the environment — we need to see strategic national projects like Bay du Nord proceed. Canadian Association of Petroleum Producers is calling on governments to advance critical discussions to ensure that all necessary agreements are in place as soon as possible to ensure this project has its best chance at success. Rystad Energy recently declared, “Offshore is back.” Around the world, countries are moving quickly to greenlight offshore developments. Canada should be leading this resurgence, not watching from the sidelines.
We already have what many countries can only dream of: abundant resources, skilled workers, a strong innovation ecosystem and local business community support.
The people of Newfoundland and Labrador are ready; Canadians are ready. It’s time to build again.
This story was provided by the Canadian Association of Petroleum Producers for commercial purposes.