"The importance of the offshore industry to Newfoundland and Labrador cannot be overstated. It represents one of the lowest carbon per barrel footprints in the world, contributes an estimated 30 per cent of GDP, and directly employs 6,390 people with thousands more in supporting industries."

- Honourable Siobhan Coady, Minister of Natural Resources, Government of Newfoundland and Labrador

The COVID-19 pandemic and the global collapse in oil prices has had a devastating impact on the offshore oil and gas industry and the province of Newfoundland and Labrador.

Over 80 businesses, leaders and community organizations have joined the industry's call to the federal government to invest in the province's economy by supporting the offshore oil and gas industry. Urgent action is needed, in the form of tax changes to encourage development and exploration, to preserve jobs and economic benefits for the province.

Over the next 10 years, the estimated loss to the province due to cancellation or deferment of oil and gas exploration development projects could be substantial, including the loss of:

  • $11 billion in provincial revenues impacting programs, infrastructure, education and health care throughout communities in Newfoundland and Labrador;
  • $59 billion of total provincial GDP;
  • An estimated 90,000 person-years of employment, resulting in a loss in much needed cash flow into the economy through consumer spending in retail, restaurants, real estate and other services.

"With its commitment to achieving net zero by 2050, Canada's offshore industry provides the basis from which enormous clean growth and economic diversification is possible for Newfoundland and Labrador."

- Kieran Hanley, Executive Director, Newfoundland and Labrador Environmental Industry Association

FAST FACTS:

  • The province's offshore represents one of the lowest carbon per barrel footprints in the world, with an average of under 19 kg CO2 equivalent per barrel.
  • A 2019 study by the Newfoundland and Labrador Department of Finance found that over the eight year period from 2010 to 2017, total (direct, indirect and induced) economic benefits related to the offshore petroleum industry in Newfoundland and Labrador accounted for nearly 30 per cent of GDP, 13 per cent of labour compensation and 10 per cent of employment.
  • As of March 31, 2020 there were 6,390 people directly employed on NL offshore oil and gas development projects.
  • More than $506 million spent on research, development, education and training in our province since 2004.
  • Production accounted for annual expenditures of $2.2 billion CAD in 2018, of which 61 per cent occurred in our province and a further 19 per cent in Canada.
  • There are over 600 supply and service companies that support the offshore industry in Newfoundland and Labrador.
  • Newfoundland and Labrador accounts for 25 per cent of Canada's conventional light crude production while contributing only 0.23 per cent to Canada's total GHG emissions.
  • Newfoundland and Labrador oil has 30 per cent less GHG emissions per barrel than the global average.

Source: Government of Newfoundland and Labrador

 

CAPP, Noia