Canada optimistic about exploration

Judy Maksoud
International Editor
Offshore

Canada is now ranked as the second largest provider of oil to the US. Jean-Michel Roy, Canadian Consul General, told participants at the Offshore Technology Conference in Houston May 3, "People still think Saudi, Saudi, Saudi, but its Canada, Canada, Canada!"

Oil production is increasing in Alberta and offshore Newfoundland, Roy said. And according to the Canada Energy Research Institute, the country's gas production is expected to increase as well.

Danny Williams, Premier of Newfoundland and Labrador, added his own brand of optimism to Roy's.

"There are a lot of great things happening in Newfoundland and Labrador," Williams said. "We have considerable on-tap energy potential."

Williams enumerated the province's successes to date, beginning with Hibernia coming onstream in 1997, Terra Nova following a couple of years ago, and White Rose to begin production by year-end.

Williams also pointed to the undiscovered reserves of 6 Bbbl of oil and 60 tcf of gas as reasons for continued optimism for the potential of the province's offshore. The Newfoundland government expects exploration to increase over the next few years. Seismic work is ongoing in the Orphan basin, and drilling plans are already in place for more drilling this year in the Jeanne d'Arc basin, the location of all the offshore producing fields.

"Newfoundland and Labrador is ready, willing, and able to meet the energy needs of the United States," Williams said. "Newfoundland is ripe for investment."

Though Nova Scotia has not had as much activity as its neighbor in the last year or so, Cecil Clarke, Nova Scotia's Minister of Energy, is hopeful that exploration will pick up soon.

"We are wrestling new opportunities and bringing them to the fore," Clarke said.

Clarke noted strides the province has made to streamline the permitting process. "Our plan now is to be more aggressive in exploration," he said.

A poor showing in recent exploration has slowed the momentum offshore Nova Scotia. Clarke hopes to get things back in motion.

"We have excellent prospectivity," Clarke said. "We want to get exploration going."

05/03/05