by Barry Clouter
When this association was started, there was no such thing as Cohasset-Panuke, no such thing as Hibernia, White Rose or Sable. And the Deep Panuke gas field still had 17 years before it would see its first drill bit.
Then came the Cohasset-Panuke oil project, followed by the hustle and bustle of the Sable Offshore Development Project. And yet the last few years have been marked by pessimism and questions about whether the best days were in fact behind us.
This time last year, the latest news on Deep Panuke was a dry well at Dominion J-14. And look at where we are today — the hearings on the Deep Panuke development plan are a week and a half away. Our situation today puts this recent negative feeling into perspective for what is was — a normal part of the ups and downs of the industry.
Deep Panuke is, of course, considerably important to Nova Scotia in the short and long terms. According to the Department of Finance’s own estimates, if this project goes ahead, the spinoff effects of Deep Panuke will result in more than 3,200 person-years of employment. Household income will benefit by more than $250 million, and the province’s own bottom line will be bolstered by more than $450 million.
We strongly support this project, and OTANS will limit its intervention into the Deep Panuke public review process to three minor points.
First, we believe that the benefits reporting requirements for both EnCana and its contractors should be less onerous while still providing the information needed by Nova Scotia policy-makers. Second, we will also advocate for a minor improvement in the wording of the definition of Nova Scotia person-hours in order to ensure that more of this work gets done in Nova Scotia while at the same time not limiting the learning opportunities that come with Nova Scotians working on project components abroad.
And third, we will encourage the province to direct the Deep Panuke gross revenue fund that EnCana has agreed to set aside for research, development and training, to whatever it takes to find the next development project. We need to invest to ensure the momentum continues into the post-Panuke period.
A quick glance at the Sable numbers underlines the importance of investing in finding the next project. Since production from Sable began, ExxonMobil and its partners have purchased more than $1 billion of Nova Scotian goods and services to keep the project running, and they have provided the equivalent of 1,100 good-paying jobs in the years since.
And that’s just during the steady-state production stage. The construction years were even more lucrative. Nova Scotia’s most recent energy strategy notes that since 1990, the strongest years of economic growth in Nova Scotia coincided with the Sable construction. And royalties from Sable — that contribution that nobody sees but everyone benefits from — are expected to contribute more than $280 million to Nova Scotia’s bottom line for 2006-07. This is currently the fourth largest source of provincially generated revenue, following only corporate, personal and sales tax revenue.
Deep Panuke can have a similar impact.
And there can be a legacy from Deep Panuke if the province does indeed invest the gross revenue fund into finding the most likely prospect for another development project; we can provide a direct link between Deep Panuke and the next economic windfall. We must keep our eyes on the prize to ensure that this momentum continues.
This project can also be a tremendous opportunity for all of us to demonstrate to other outside investors that Nova Scotia is indeed a good place to do business.
And it is extremely encouraging to hear the chairman of the Offshore Petroleum Board, Diana Dalton, say that she wants to have the regulatory process completed within nine months. This is the type of co-operative determination that sends exactly the right signals to others who would consider investing in this province.
We also have to look outward as well as inward. Newfoundland and Labrador has tremendous prospects for both its offshore and onshore industries as well, and a successful industry there benefits our members as well. A healthy industry in both provinces is good for the entire Eastern Canadian region and is something we should all be cheering for.
But OTANS interests are not limited to the offshore. Coal-bed methane has really great prospects onshore. New technology is allowing abandoned coal to be accessed from the Donkin mine. As well, a contract has recently been awarded to do a soil assessment at Lake Ainslie to test for oil. And OTANS is supportive of Keltic Petrochemicals’ and Maple’s LNG project at Goldboro.
OTANS also realizes that petroleum does not have to be the be-all and end-all of the energy business, and we continue to support renewable and alternative energy prospects. These include the plans for a second tidal station and exciting prospects for ocean wave action.
When this association was started, there was no such thing as Cohasset-Panuke, no such thing as Hibernia, White Rose or Sable. And the Deep Panuke gas field still had 17 years before it would see its first drill bit.
Then came the Cohasset-Panuke oil project, followed by the hustle and bustle of the Sable Offshore Development Project. And yet the last few years have been marked by pessimism and questions about whether the best days were in fact behind us.
This time last year, the latest news on Deep Panuke was a dry well at Dominion J-14. And look at where we are today — the hearings on the Deep Panuke development plan are a week and a half away. Our situation today puts this recent negative feeling into perspective for what is was — a normal part of the ups and downs of the industry.
Deep Panuke is, of course, considerably important to Nova Scotia in the short and long terms. According to the Department of Finance’s own estimates, if this project goes ahead, the spinoff effects of Deep Panuke will result in more than 3,200 person-years of employment. Household income will benefit by more than $250 million, and the province’s own bottom line will be bolstered by more than $450 million.
We strongly support this project, and OTANS will limit its intervention into the Deep Panuke public review process to three minor points.
First, we believe that the benefits reporting requirements for both EnCana and its contractors should be less onerous while still providing the information needed by Nova Scotia policy-makers. Second, we will also advocate for a minor improvement in the wording of the definition of Nova Scotia person-hours in order to ensure that more of this work gets done in Nova Scotia while at the same time not limiting the learning opportunities that come with Nova Scotians working on project components abroad.
And third, we will encourage the province to direct the Deep Panuke gross revenue fund that EnCana has agreed to set aside for research, development and training, to whatever it takes to find the next development project. We need to invest to ensure the momentum continues into the post-Panuke period.
A quick glance at the Sable numbers underlines the importance of investing in finding the next project. Since production from Sable began, ExxonMobil and its partners have purchased more than $1 billion of Nova Scotian goods and services to keep the project running, and they have provided the equivalent of 1,100 good-paying jobs in the years since.
And that’s just during the steady-state production stage. The construction years were even more lucrative. Nova Scotia’s most recent energy strategy notes that since 1990, the strongest years of economic growth in Nova Scotia coincided with the Sable construction. And royalties from Sable — that contribution that nobody sees but everyone benefits from — are expected to contribute more than $280 million to Nova Scotia’s bottom line for 2006-07. This is currently the fourth largest source of provincially generated revenue, following only corporate, personal and sales tax revenue.
Deep Panuke can have a similar impact.
And there can be a legacy from Deep Panuke if the province does indeed invest the gross revenue fund into finding the most likely prospect for another development project; we can provide a direct link between Deep Panuke and the next economic windfall. We must keep our eyes on the prize to ensure that this momentum continues.
This project can also be a tremendous opportunity for all of us to demonstrate to other outside investors that Nova Scotia is indeed a good place to do business.
And it is extremely encouraging to hear the chairman of the Offshore Petroleum Board, Diana Dalton, say that she wants to have the regulatory process completed within nine months. This is the type of co-operative determination that sends exactly the right signals to others who would consider investing in this province.
We also have to look outward as well as inward. Newfoundland and Labrador has tremendous prospects for both its offshore and onshore industries as well, and a successful industry there benefits our members as well. A healthy industry in both provinces is good for the entire Eastern Canadian region and is something we should all be cheering for.
But OTANS interests are not limited to the offshore. Coal-bed methane has really great prospects onshore. New technology is allowing abandoned coal to be accessed from the Donkin mine. As well, a contract has recently been awarded to do a soil assessment at Lake Ainslie to test for oil. And OTANS is supportive of Keltic Petrochemicals’ and Maple’s LNG project at Goldboro.
OTANS also realizes that petroleum does not have to be the be-all and end-all of the energy business, and we continue to support renewable and alternative energy prospects. These include the plans for a second tidal station and exciting prospects for ocean wave action.
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