Newfoundland and Labrador’s prime minister, Andrew Fury, downgraded a series of setbacks on the offshore oil industry in which the federal government is involved.
During an announcement about a plan to electrify the oil heating system at Memorial University, Furey sought to allay fears about the future of the oil industry, which is a major employer and driver of the provincial economy. Earlier this month, the Trinto government delayed a final decision on the controversial mega Bay du Nord project. This week, a call for offshore exploration offers was delayed. “I fully appreciate the stress this is causing, not just in the industry, but more importantly in the families affected and working in the industry,” Furey told CBC News. “I’m optimistic we can get to a good place.” Furey said people should not read too much about the delay for offshore exploration offers, echoing a statement Thursday by Federal Reserve Secretary Jonathan Wilkinson. The prime minister also reiterated his support for the Bay du Nord, which, if approved, would become the fifth Newfoundland and Labrador production field and the first to push offshore oil development into the deep waters of the Flemish Pass, about 500 kilometers east of St . John’s. Norwegian oil giant Equinor and its partners plan to use a floating production, storage and unloading vessel, commonly known as the FPSO, capable of producing up to 200,000 barrels per day. Environmentalists have pressed the federal government not to open another frontier in the Newfoundland and Labrador oil industries, and Furey to shift Newfoundland and Labrador’s economic priorities to other industries. Furey said oil produced by the province – including the Bay du Nord – could fill supply gaps caused by boycotts sparked by Russia’s invasion of Ukraine. “Newfoundland and Labrador have a big role to play, as does Canada,” he said. Russia invaded Ukraine in February. If approved, it would take years for Equinor to bring Bay du Nord into production.

The Bay du Nord is needed to get to: Fuey

Fuey also said that the Bay du Nord plays a role in the transition to renewable energy, noting that the oil produced by the province is relatively low carbon, a point that climate experts have criticized. “I think there is an urgent need to really look at the federal government to ensure that this is approved,” he said. The provincial government, the opposition and the local oil industry have strongly supported the project, although it has angered some environmental groups. In a statement Friday, Sierra Club spokeswoman Heather Elliott said it was “impossible” to justify it. “Scientists have warned that the new oil production is not compatible with climate targets and this project is not part of a fair transition,” Eliot said. The Intergovernmental Panel on Climate Change has called on governments to stop using fossil fuels.

O’Regan is still quiet about supporting the Bay du Nord

The Bay du Nord is said to be controversial in the cabinet of Prime Minister Justin Trindade, according to Radio Canada, which reported in February that several liberal ministers from Ontario, Quebec and British Columbia wanted to reject the plan. The final decision on the project rests with Federal Environment Minister Steven Guilbeault and is expected on April 13. Speaking to reporters Friday at the same event at Memorial University, Federal Labor Minister Seamus O’Regan again declined to say whether he supported the Bay du Nord, citing cabinet secrecy. He said the decision on the fate of the project is “very much alive” in the federal government. “When it comes to offshore, I think, to be honest, my credibility is good enough,” O’Regan said. Federal Labor Secretary Seamus O’Regan would not say whether he supports the Bay du Nord on Friday. (Mark Quinn / CBC)
“From a federal point of view, what we are doing now is trying to take care of the workers and reposition the workers. [the offshore oil industry] to reduce emissions “. While O’Regan remained committed to the future of the Bay du Nord, he did say he would need workers in the oil industry to switch to renewable energy. “We need them to stay in this industry to be able to effectively reduce emissions,” he said. O’Regan said the federal government’s emissions reduction plan, expected next week, would have more information on how it plans to reach net zero emissions. Read more from CBC Newfoundland and Labrador