Province still only small portion of global spending
Only drawing a small portion of the continually rising global spend on oil exploration, Newfoundland and Labrador has the potential to draw in more in the near future, according to industry experts and oil company representatives attending the Noia oil and gas conference in St. John’s Thursday.
On the last day of the conference, a senior managing consultant at Wood Mackenzie, Richard Tiley, offered a “whistlestop tour” of offshore oil and gas exploration worldwide. He suggested where this province fits into that outlook.
Upwards of $90 billion will be spent on oil and gas exploration globally this year, he said, with a push for offshore licence area acreage.
Known basins offshore Newfoundland and Labrador are nowhere near the top ranks of the busiest exploration areas globally.
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However, Tiley said, this province is “absolutely competitive” in terms of the potential for local prospects to create value for explorers.
Tiley also said having more scheduled land sales — as is being pushed by Premier Kathy Dunderdale — would help to draw in oil and gas hunters.
In their own conference presentations, companies currently active offshore Newfoundland and Labrador issued commitments to further their exploration work.
They also highlighted the provincial government’s decision to invest in early works, specifically seismic data, in underexplored areas.
Chevron vice-president Mark Macleod said his company will continue to explore in the region and suggested the company has taken interest in new areas as a result of Nalcor Energy’s data work.
“It has opened our eyes. We are evaluating the data,” he said.
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