As Canada falls behind the global competition to develop energy, it is refreshing and encouraging to see the Government of Newfoundland and Labrador focused on creating oil and natural gas jobs for the people of the province.
The Canadian oil and natural gas industry is a vital part of our country’s economy and the provincial government has recognized the growth of the offshore is essential to securing economic prosperity for the future.
With the release of its plan, Advance 2030: A Plan for Growth in the Newfoundland and Labrador Oil and Natural Gas Industry, the government is demonstrating the significant role industry plays in the future success of the province. The Canadian Association of Petroleum Producers applauds the province’s work, and the work of the Minister of Natural Resources’ Oil and Gas Industry Development Council for this forward-looking initiative.
"Our regulatory systems need to be streamlined and clarified, eliminate uncertainty, and enhance investor confidence"
Newfoundland and Labrador’s offshore is a high cost, high risk place to invest. Much like the rest of Canada, the province has seen layers of additional costs and changes to the regulatory environment impacting industry’s ability to compete for investment on the global stage.
Our regulatory systems need to be streamlined and clarified, eliminate uncertainty, and enhance investor confidence in our sustainable oil and natural gas industry.
Despite the mounting costs and barriers that continue to threaten industry’s ability to grow and provide benefits for the country, it remains a primary source of employment for Canadians. It is responsible for more than 530,000 direct and indirect jobs and in 2015 made $7.4 billion in payments to the federal government and $11.4 billion to other governments across the country.
"We believe the province can be successful in achieving its vision and becoming an internationally preferred location for exploration, development and production."
There is significant growth potential in Newfoundland and Labrador’s offshore region. By working with the federal government to provide regulatory certainty and a more effective and efficient regulatory process – and working to lower the costs of exploration and development in the region – we believe the province can be successful in achieving its vision and becoming an internationally preferred location for exploration, development and production.
All Canadians must work together to achieve this, including governments and industry. CAPP is committed to working with government and its partners to improve Newfoundland and Labrador’s competitive position.
CAPP urges other governments across Canada to follow the province’s lead.