$4 billion worth of exploration commitments for offshore Newfoundland are about to take place!
Jim Keating of Nalcor Energy describes the drilling potential as, “a bow wave of investment as eight oil companies, with 10 exploration plans, launch exploration campaigns offshore Newfoundland.”
Drilling Ratio’s for discovering oil is: seven exploration wells drilled for every oil discovery. Do the math.
Drilling will peak in the next two to three years as about 8 – 10 exploration wells start drilling. With luck on side, a discovery is eminent.
With West White Rose in the works, Bay du Nord right behind it and the next eight exploration drilling plays, eastern Canada’s oil and gas industry is preparing for the arrival of more drill rigs and a surge in the amount of supplies and services sector.
By 2021, ExxonMobil, Chevron, Equinor and CNOOC have committed to spend $1.7 billion in exploration plays.
By 2022, BP Canada, Navitas Petroleum, Nexen Energy and Husky have committed to spending $763 million.
By 2024, BHP, Equinor and Suncor, will spend $1.4 billion in exploration.
To date companies have spent $9 billion in exploration which translated into $160 billion in value for those working in the oil industry. If history repeats itself the current exploration plays and potential discovery could result in $50+ billion in industry value as there are probably two dozen prospects offshore that are the size of Hibernia or bigger.
2020 lays the foundation for oil exploration drilling and discovery. Nalcor predicts 52 billion barrels of oil, and just under 200 trillion cubic feet of natural gas.
If we are to avail of the opportunities ahead we must create a positive mindset, harness the opportunities RIGHT NOW, and ensure that we capitalize on the potential that is sitting in the palm of our hands.
This is our moment. This is our time. No amount of government bureaucracy or climate change concern should slow us down because oil and gas is the bridge to new energy. Without oil we aren’t getting to new energy. It’s that simple.
Nothing will be more expensive for Newfoundlanders and Canadians overall, than a missed opportunity!
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