Canada's offshore E&P reaches $1 billion/year milestone
Offshore staff
(Newfoundland)- The Canada-Newfoundland and Labrador Offshore Petroleum Board reports that offshore activity in eastern Canada is now a $1 billion/year industry.
The statement was published in C-NLOPB's 2005-2006 annual report, which reviewed 20 years' worth of growth in the oil and gas industry. The report includes the recent revisions to the C-NLOPB reserves and resources estimates, which adds more than 700 MMbbl of oil to previous estimates.
Fred Way, acting chair and CEO of the board, was quoted as saying that offshore E&P contributes more than 14% of Newfoundland and Labrador's GDP and accounts for 36% of Canada's total light crude production.
More than $800 million was spent in capital investment during the past fiscal year, and the industry provided 21% of the total capital investment in the province.
The C-NLOPB reportedly still holds nearly $800 million in exploration commitments, and areas of potential development include the Orphan basin, the Laurentian sub-basin, and the Sydney basin. All are included in this year's C-NLOPB sale process.
"It is a vibrant, expanding industry which will become even more complex with the development of deepwater drilling technology and innovative production equipment and practices," Way said.
06/30/2006