Energy NL Reacts to Budget 2023 – Welcomes Support for Energy Sector

March 23, 2023

The Government of Newfoundland and Labrador released its budget and Energy NL welcomes a number of the initiatives, including reinstatement of the offshore seismic program, support for the renewable sector, continuation of the Offshore Exploration Initiative, and assessment of natural gas opportunities. The energy sector continues to be an economic driver, responsible for approximately 20% of provincial GDP and an approximately $100 million contribution to the Future Fund.

“Overall, I see Budget 2023 as positive for the energy sector. The return of the offshore seismic program is important to our industry. Seismic data is used to help determine where exploration should occur and has the best chance of being successful. Moreover, it is used to attract investment into the offshore through the land sale process. Seismic will also play an important role as we look for possible locations to store carbon. Early research indicates our offshore has the potential to store all of Canada’s carbon emissions and seismic data can help us find the pathway to carbon storage and net zero.” said Charlene Johnson, Energy NL CEO

There is an allocation of over $500,000 for the renewable sector, including increasing capacity for environmental assessment and regulatory oversight. Energy NL is pleased to see investment in the environmental assessment process to ensure appropriate protection and progress, not a delayed process. As well, increased resources to develop an efficient and robust regulatory approach are welcomed. Initiatives such as the green technology tax credit and Low Carbon Economy Fund may also help Energy NL members lower their carbon footprint and Energy NL looks forward to learning more about these initiatives and how its members can benefit.

“Continuation of the Offshore Exploration Initiative is important as we have seen the program stimulate important offshore activity, including exploration for this year. The almost $5 million to assess natural gas in the Jeanne d’Arc Basin is also a positive step to help open another energy play for Newfoundland and Labrador. We continue to make significant progress in our energy sector and I look forward to working with Energy NL members and the provincial government to ensure industry growth and success.” said Charlene Johnson, Energy NL CEO

Energy NL represents approximately 500 member organizations worldwide that are involved in the energy sector. Members are active in all areas of the supply and service sector and include a diverse representation of businesses that range from offshore supply vessels and helicopters, carbon reduction and sustainable technologies, health and safety equipment and training, engineering solutions and fabricators to law firms and human resource agencies.