The federal government has announced $320-million to support jobs and investment in the offshore industry hard-hit by the pandemic and a drop in global oil prices.
The industry employs some 6,000 people directly and thousands more in supporting industries. It contributed more than $22-billion in royalties to the province to the end of 2019.
Federal Natural Resources Minister Seamus O’Regan made the announcement this afternoon at the Johnson GEO Centre.
O’Regan says the goal is to develop what he calls a “clean tech hub” for Canada and to ensure a sustainable future for the Newfoundland and Labrador offshore, which produces lower-emitting oil.
A task force, co-chaired by Bill Fanning and Karen Winsor, will be formed to make recommendations on how to spend the funding.
The Newfoundland and Labrador offshore will reach the 2-billion barrel mark this weekend, according to Avalon MP Ken McDonald.
The Canadian Association of Petroleum Producers says they are hopeful today’s announcement will make a difference, but say it’s lacking in detail as operators make investment decisions in the coming weeks and months.
In a statement released this afternoon, CAPP says the situation facing the industry is “dire” with thousands of jobs and projects at risk.
CAPP says more detail is needed to determine if the support will actually help operators overcome the “critical challenges they’re facing.”
PC Leader Ches Crosbie says he is angry, and there was nothing in today’s announcement to put people back to work.
Meanwhile, NOIA is welcoming today’s money from the federal government towards the oil and gas sector.
CEO Charlene Johnson says the focus now must be how we can use that money to advance the industry and maximize its potential. They plan to work with the province to grow that money into an even bigger pot of money to help create a sustainable industry.
