Oil and Gas

Newfoundland and Labrador is home to a thriving and growing oil and gas industry. With three producing oil projects – Hibernia, White Rose and Terra Nova - the province accounts for about 40% of Canada’s conventional light crude output.

Future opportunities also abound with development of Hebron, the province’s fourth stand alone oil development, expansions at Hibernia and White Rose, ongoing exploration work in a number of offshore basins and future development of the province’s natural gas resources.

Newfoundland and Labrador’s environment has necessitated development of specialized and unique technologies to deal with the operational challenges brought about by sea ice, icebergs, wind and wave conditions, which are unlike anywhere else in the world. These capabilities, combined with the province’s strategic location, also make Newfoundland and Labrador an ideal centre for Arctic development. The province’s historic ties to Arctic petroleum exploration date back to the seventies and eighties when the province was a staging point for research and development and drilling activity. A long-standing connection to Northeastern Europe, including Iceland and Greenland, through centuries of commonality from industry, fishing and mining, are now evolving. Explorers with Arctic ambitions are seeking the skills of our brightest minds in dealing with harsh surface environments including deep water, cold water, cold surface temperatures, hostile weather conditions and the challenges of multi-year ice and icebergs.

The result for our oil and gas sector: world-class research and development capabilities which are in demand around the world, and comprehensive infrastructure to meet the needs of this dynamic industry.

 

Industry

  • Major economic driver: Offshore oil and gas industry accounts for approximately 36% of the province's annual GDP.
  • Three world-class offshore production fields - Hibernia, Terra Nova and White Rose. Total cumulative oil production from these fields reached one billion barrels in January 2009.
  • 4,000 highly-skilled people employed in the industry; over 350 supply and service firms.
  • International oil companies active in the province:
    • Husky Energy
    • Chevron
    • ExxonMobil
    • Imperial Oil
    • Shell
    • Suncor
    • ConocoPhillips
    • StatoilHydro
    • Repsol Exploracion, S.A.

 

Opportunity

  • Nearly three billion barrels of oil and 11 trillion cubic feet of natural gas discovered to date; estimated undiscovered potential of six billion barrels of oil and 60 trillion cubic feet of natural gas.
  • Hibernia South, Hebron and North Amethyst have been sanctioned and are currently under development.
  • In addition, the Orphan Basin, Flemish Pass Basin, offshore Labrador, the Laurentian sub-basin and onshore and offshore Western Newfoundland offer future exploration and possible development opportunities.

 

Infrastructure and Transportation

  • Newfoundland and Labrador is strategically positioned on international shipping lanes, with deep water, ice-free ports, giving exceptional access to global markets.
  • Whiffen Head Transshipment Terminal is a three million barrel storage and transshipment terminal that services the offshore petroleum industry.
  • North Atlantic Oil Refinery is a 115,000 barrel of oil per day crude oil processing facility.
  • Four world class industrial marine and fabrication facilities support the industry - Bull Arm Fabrication Site, Cow Head Fabrication Facility, Marystown Shipyard and the St. John's Dockyard Ltd. (NEWDOCK).
  • Bay Bulls Marine Terminal (BBMT) manages and operates an ISPS-Certified Marine Terminal facility in the Port of Bay Bulls. It is the closest ice-free, deepwater port to the Grand Banks oil fields.

 

Education and Research

  • Memorial University, the largest university on Canada's east coast, has more than 17,000 full and part-time students enrolled and grants degrees annually in disciplines such as engineering, applied sciences and business.
  • Programs tailored to the needs of the oil and gas industry include: Master of Applied Science in Oil and Gas Engineering and Master of Oil and Gas studies (an executive development program).
  • Memorial University boasts a number of R&D facilities which help develop leading edge technology for the oil and gas industry:
    • Centre for Earth Resources Research;
    • MEDICOR;
    • Ocean Engineering Research Centre;
    • Landmark Graphics Visualization Laboratory for petroleum related research.
  • The Marine Institute offers a range of technology and marine-based degrees and diplomas, and is home to several advanced research facilities including the:
    • Centre for Marine Simulation
    • Centre for Sustainable Aquatic Resources
    • Offshore Safety and Survival Centre
  • The National Research Council Institute of Ocean Technology is Canada’s national centre for ocean technology R&D and is an internationally recognized leader in ocean engineering research in harsh, cold weather environments.
  • Other Centres of Excellence servicing the oil and gas industry:
    • C-CORE (expertise in Intelligent Sensors, Ice Engineering, Geospatial Systems and Geotechnical Engineering)
    • Canadian Centre for Marine Communications
    • Centre for Marine Compressed Natural Gas

 

Incentives
There are a number of business and tax incentives available to businesses looking to locate to or expand in the province. For more information, Click Here.