Newfoundland and Labrador has an opportunity to become one of the most competitive offshore oil and natural gas jurisdictions in the world, but only if Newfoundlanders and Labradorians vote for energy in the next provincial election, according to the Canadian Association of Petroleum Producers (CAPP). In its Newfoundland and Labrador Energy Platform, Oil and Natural Gas Priorities for a Prosperous Newfoundland and Labrador, CAPP made a series of action-oriented recommendations aimed at increasing industry competitiveness through improvements to regulatory, fiscal, and economic policies, and the timely expedition of projects.
"Newfoundlanders and Labradorians need to be well-informed and have a clear picture of how we can make our province better before heading into the election. A vote for energy sends the message that Newfoundland and Labrador can, and should, be supplying energy to the world," said Paul Barnes, CAPP Atlantic Canada and Arctic Director.
In its Energy Platform, CAPP provides clear information about the challenges facing Newfoundland and Labrador's oil and natural gas industry. CAPP hopes to inform the public and political parties about how industry can continue to generate significant benefits for the province and its economy. A vote for energy is a vote for a more prosperous future for Newfoundland and Labrador.
CAPP's recommendations advocate for a strong growth scenario for the oil and natural gas industry in the province, increasing competitiveness in the global energy market, and attracting more investment in Newfoundland and Labrador. The Energy Platform sets goals to advocate for regulatory efficiency and effectiveness federally, continue to expedite project developments, make small field developments more economic, introduce fiscal incentives to encourage exploration, and advocate to eliminate unnecessary federal costs. Furthermore, CAPP encourages political parties to advocate for amendments to Bill C-69 and the exclusion of exploration wells from the future designated project list.
In the upcoming provincial election, it's important all Newfoundlanders and Labradorians vote for energy. CAPP's Energy Platform is to inform all Newfoundlanders and Labradorians of the concerns and vision of the offshore oil and natural gas business in a manner that is non-partisan and is not advertising. The business of energy is the business of every government in Canada regardless of its political persuasion. CAPP does not support or oppose any particular registered party of candidate.
"The Industry has been asking for effective policy changes to make Newfoundland and Labrador more competitive. We want to attract more global investment to the offshore region, but to do so we need greater regulatory certainty along with fiscal and economic policies that allow us to compete," Barnes stated. "A healthy oil and natural gas industry benefits all of Canada, and builds on the backbone of our economy. As Newfoundlanders and Labradorians head to the polls, the message is that a vote for energy is a vote to build a prosperous Newfoundland and Labrador.
"The Newfoundland and Labrador Energy Platform is ambitious and achievable. By increasing our global competitiveness, we can attract investment and create more jobs, grow production, and provide the world with energy it needs."
In its February 2019 study examining the results of the socio-economic benefits of Newfoundland and Labrador, Stantec found the oil and natural gas industry was responsible for the following:
- An average 29.7 per cent of the province's gross domestic product between 2010 and 2017;
- 12.9 per cent of all labour income in the province;
- 10.8 per cent of all retail sales; and,
- 24,000 jobs.
A recent Noia study found that if Newfoundland and Labrador capitalizes on its oil and natural gas potential it could see benefits increase substantially by 2033.
- Total industry employment rising to 56,000 across the province, and an additional 22,700 jobs in the rest of Canada;
- Increased labour income to more than $4.6 billion annually;
- Increased consumer spending to $3.5 billion annually; and,
- Increased provincial government benefits through royalty and tax payments to $6.7 billion.