Prime Minister Justin Trudeau’s is visiting Newfoundland and Labrador and the Noia members welcome him to our province. Curiosity and speculation surround the visit. Word on the street says there is a “major” announcement to come. What could it be? The oil and gas industry hopes it’s good news for Newfoundland’s offshore.
The federal and provincial governments are currently engaged in a review of the Atlantic Accord and Noia calls upon the Prime Minister to respect the impact the Accord in allowing the industry to flourish and ensure legislated benefits remain protected and enhanced in any potential revisions to the Accord.
The Newfoundland and Labrador offshore oil and gas industry has provided tremendous benefits to the province, due to the Atlantic Accord which recognizes the province’s right to jointly manage and receive benefits from offshore resources.
Specifically, Section 2 of the Atlantic Accord ensures that Newfoundland and Labrador be the “principal beneficiary” of the offshore and Section 51 requires that Newfoundland and Labrador companies have “full and fair opportunity” to participate in the offshore supply and service industry. These agreed upon rights must be upheld and built upon, during the current review.
Noia’s economic impact study demonstrates the profound value of the offshore oil and gas industry to the province and the country. ImagineThePotential.ca highlights that the oil industry is by far the most significant contributor to the Newfoundland and Labrador economy and forecasts future potential benefits of over $100 billion in royalties and taxes to the provincial government by 2045.
Game-changing revenue such as this, along with the numerous other economic benefits highlighted in the study, exemplify why the Atlantic Accord is so crucial to Newfoundland and Labrador and the entire country.
The Newfoundland and Labrador oil industry is well-positioned to assist the Government of Canada in achieving their greenhouse gas reduction goals as our light sweet crude is 30 per cent below the global average for carbon dioxide emissions at extraction. As well, our industry is attracting foreign direct investment, another objective of the federal government. In just the last three years, eight new exploration and production companies have entered the Newfoundland and Labrador market.
The Newfoundland and Labrador offshore oil and gas industry is a nation builder which must be recognized during the Atlantic Accord review process.
Noia members request that the tenets of the Accord which have been so instrumental in fostering an offshore industry for Canada be respected and any revisions enhance the outcomes for Newfoundlanders and Labradorians.
Enhancements to the Accord should further allow for local companies to participate in the burgeoning industry and increase their presence and expertise. Supported by legislation and regulations which ensure the industry is globally competitive, there is no reason why the Newfoundland and Labrador industry cannot reach its potential.
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