Newfoundland and Labrador’s Noia CEO comments on the Premier’s economic Recovery Team Report
Noia CEO Charlene Johnson said the Premier’s Economic Recovery Team report highlights the need for a competitive regulatory regime that allows the Newfoundland and Labrador offshore oil and gas industry to successfully bring projects to market.
Johnson thanked Dame Moya Greene and the Premier’s Economic Recovery Team for undertaking a thorough consultation process and review of Newfoundland and Labrador’s financial circumstances. “Secondly, I commend the report for highlighting the significant role the Newfoundland and Labrador offshore oil and gas industry can and should play in helping our province overcome its current fiscal challenges,” Johnson said. “We have long known the important role the offshore oil and gas sector plays in our province in terms of revenue, royalties, jobs, skills development and social sector impacts.
“The report also highlights the need for a competitive regulatory regime that allows the Newfoundland and Labrador offshore oil and gas industry to successfully bring projects to market.”
There is a focus on taking immediate steps to get existing projects operational. Recognizing the need to be competitive and develop projects now, and giving direction to the Canada-Newfoundland and Labrador Offshore Petroleum Board to set development of the offshore as a priority, is welcomed, Johnson said.
“I look forward to working with all parties involved in that process, including the upcoming provincial consultation process, to make expedited exploration and development a reality,” Johnson said. “I agree with Dame Greene that it is urgent to get our offshore oil and gas industry back into production as it can help meet current global demand, and importantly, play a leading role in helping to develop the green economy. The report also highlights that the low emission fuel found offshore Newfoundland and Labrador can help displace higher emitting fuel sources found globally.
"I am confident Noia members would also support the development of a Future Fund which uses revenue from the offshore to drive the green economy and pay down our significant debt. For decades Norway has been using a similar fund to provide a progressive way of life for its residents and diversify its economy, all while maintaining a strong offshore oil and gas sector. Noia has long stated the offshore oil and gas industry is our best opportunity to right our ship, build skills, and ensure a prosperous future for Newfoundland and Labrador. Today, Dame Greene affirmed this belief and I look forward to looking deeper into the recommendations and helping our province get back on sound fiscal footing.”
Notably today during the news conference to release the report, Dame Moya Greene stated the following about the Newfoundland and Labrador offshore oil and gas industry:
“Our oil and gas is some of the lowest carbon intensity oil and gas in the world. It is urgent now
that we get our offshore back into production.”
While Noia continues its review of the report, recommendations of the Premier’s Economic Recovery Team of particular interest to Noia include:
• Review its petroleum royalty and local benefits structures in 2021-22 to ensure they encourage exploration and development of new activity in the offshore, with net-zero targets wherever possible.
• Request the Federal Government reinstate the Atlantic Investment Tax Credit for offshore petroleum projects and for green mining projects.
• Streamline regulatory processes to improve timelines and adjust regulatory approaches that make Newfoundland and Labrador uncompetitive.
• Give direction to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) that the development of the offshore area is a priority function and offshore management must be consistent with the principles underpinning the Atlantic Accord.
• Require consultation with Indigenous governments and organizations and other marine users such as fisheries organizations and marine transportation companies.
• Require employment diversity, particularly to ensure women and people who are gender diverse, Indigenous Peoples, and People with disabilities can access well-paying jobs.
The Premier’s Economic Recovery Team report can be found here.