In Brief: Three projects up and one in the works, things appear to be going well for the Newfoundland offshore petroleum industry. But in this commentary, AIMS Fellow Peter Fenwick points out it could be so much better, if the provincial government would only play by the KISS rule, in this case ‘Keep It Stable and Straightforward’.
Hibernia, Terra Nova, and White Rose. Three oil projects offshore Newfoundland pumping thousands of barrels of oil a day and millions of dollars into the provincial economy. But these fields were found decades ago and nothing since. Hebron Ben Nevis waits in the wings, it could be the next project on-line, but its trials are an example of why the Newfoundland offshore industry isn’t all that it can be.
In this commentary, Newfoundland’s Peter Fenwick says the provincial government needs to bring stability to its regulatory regime or risk losing future developments. He writes:
“The failure of the oil industry to find new fields in Newfoundland is primarily the result of capricious and unstable government development policies that discourage oil companies from investing. Until the offshore regulations become fair and predictable, Newfoundland’s offshore is likely to stay as undeveloped as it is.”
To read the complete commentary, click here.