It is predicted that natural gas and oil investment in Canada would rise by 22% in 2022, however Newfoundland and Labrador’s offshore is unlikely to play a significant part in that growth, according to CAPP.
“Conventional oil and natural gas capital investment for 2022 is forecast at $21.2 billion, up from an estimated $18.1 billion last year, while growth in oil sands investment is expected to increase 33 per cent to $11.6 billion compared to $8.7 billion last year,” CAPP states on a recent news release statement.
“In Newfoundland and Labrador, offshore investment is expected to remain relatively flat at $1.6 billion in 2022 compared to $1.5 billion last year. Globally, the offshore sector is attracting significant new investment, with expected spending in the sector to grow by seven per cent to approximately $195 billion in 2022. For comparison, the Gulf of Mexico is expected to grow investment by 21 per cent to $13.1 billion this year. Canada’s offshore development offers some of the world’s lowest-emission oil. The natural gas and oil industry, along with the provincial government, is seeking to work with the federal government to improve the region’s global competitiveness to help realize the value in Canada’s offshore sector.”
The Newfoundland and Labrador Oil and Gas Industries Association, also known as NOIA, claims that the CAPP projection is based on reliable data.
“Given the long-lasting impacts of COVID-19 and the previous downturn experienced by the Newfoundland and Labrador offshore oil and gas industry, including projects delayed or deferred, the forecast is not surprising to Noia,” says CEO Charlene Johnson.
“We remain encouraged that despite all we have experienced in recent years, there will still be $1.6 billion in investment made in 2022. With the Bay du Nord project on the horizon, return of the Terra Nova FPSO and potential drilling at Hibernia, along with exploration projects by ExxonMobil, BP and BHP occurring in the coming years, we have a lot to be excited for and look forward to building upon our previous successes.”
Government funding is expected to continue beyond 2022 in an effort to get back on track after a COVID-19 pandemic pushed back the industry, says Andrew Parsons, Minister of Industry, Energy & Technology, in an interview. half. “As a province we have been extremely supportive of the industry over the last year and half. We remain extremely supportive,”
“Maybe we are not projected to be what we were, but it was a pretty banner year in terms of trying to get that industry back on the right foot after an extremely tumultuous previous year.”
It was announced in September 2020 that Newfoundland and Labrador would receive $320 million from the federal government. In order to help the province’s offshore oil and gas industry recover, the fund aimed to maximize employment for Newfoundlanders. An estimated $288 million went to current offshore businesses.
In November, the government pledged $2.5 million to 26 offshore supply and service projects. A large number of such projects focused on improving the province’s worldwide competitiveness through technology, digitalization, and carbon reduction.
Original source material for this article taken from here