Community and Business Leaders Call for Federal Investment in Offshore
July 7, 2020, St. John’s, NL
Today, community and business leaders, as well as supporters throughout Canada, are united to send a clear message to the Government of Canada that action is needed to attract investment in the offshore oil and gas industry and help thousands of Canadians get back to work. Over 80 leaders have spoken out today about what the offshore means to them and their organizations.
Over the next 10 years, the estimated loss to the province due to deferment and loss of oil and gas exploration and development projects could be substantial:
- $11 billion in provincial revenues impacting programs, infrastructure, education and health care throughout communities in Newfoundland and Labrador;
- $59 billion of total provincial GDP;
- 90,000 person-years of employment, resulting in significantly lower consumer spending in retail, restaurants, real estate, and other services; and
- The province’s best opportunity to be an international clean growth leader and oceans technology hub.
The world is moving towards a low carbon economy. Newfoundland and Labrador’s offshore oil and gas industry represents one of the lowest carbon per barrel footprints in the world. Greenhouse gas emissions can be further reduced by making immediate investments in the development of lower carbon fossil fuels. Reducing global emissions by providing the world with Newfoundland and Labrador oil to help supply increasing global energy demand is a valuable contribution to the fight against climate change.
Newfoundland and Labrador’s offshore oil and gas industry fully supports protecting the environment, reducing carbon emissions and working with governments to meet provincial, national, and international emissions reduction targets. Through its commitment to lower carbon and clean technology, the offshore oil and gas industry will be a catalyst for clean growth innovation. The technologies developed will also accelerate the diversification of the province’s economy. The Newfoundland and Labrador approach mirrors that of Norway, a global environmental leader, which has steadily increased oil and gas production since 2012 due to its government’s policy of stimulating exploration and development while simultaneously taking significant actions to move to a low carbon economy and developing new clean technologies that are being exported worldwide. Newfoundland and Labrador can lead Canada’s energy future and make Canada a global clean growth leader like Norway.
The importance of the oil industry to the economy of Newfoundland and Labrador cannot be overstated with an estimated 30 per cent of GDP, 13 per cent of labour compensation and 10 per cent of employment (over the 2010 to 2017 period). As of March 31, 2020 there were 6,390 people directly employed on NL offshore oil and gas development projects while thousands more were employed in supporting industries.
All Canadians are encouraged to join with the over 80 leaders who are today calling for support for the offshore.