The Canadian government on April 6 approved a $12 billion offshore oil project proposed by Norway's Equinor ASA after an environmental assessment concluded it would not cause significant adverse effects.
The Bay du Nord project would involve building a floating platform to drill an estimated resource of 300 MMbbl of light crude oil in the Atlantic Ocean, about 500 km (310 miles) off the coast of Canada's Newfoundland and Labrador province.
Environmental groups blasted the move, which comes days after a U.N. report warned the world risked climate disaster without severe emissions cuts.
"The decision is tantamount to denying that climate change is real and threatens our very existence," said Julia Levin, program manager at Environmental Defense.
Bay du Nord would be Canada's first remote deepwater project at around 1,200 m (4,000 ft) deep and has come to symbolize the tension between Canada's climate goals and concerns about energy security in the wake of Russia's invasion of Ukraine.
Prime Minister Justin Trudeau's liberal government has pledged to cut emissions 40%-45% below 2005 levels by 2030 but in recent weeks has been exploring ways to increase energy exports to Europe to displace Russian supplies.
Oil and gas is Canada's highest-polluting sector, accounting for 26% of emissions.
Equinor and partner Cenovus Energy have not yet made a final investment decision on whether to build the project, but the Norwegian firm said it welcomed the ministry's decision.
"We now look forward to progressing this key investment in Canada, which has the potential to produce the lowest carbon oil in the country," Equinor said in a statement.
Canada's Environment Minister Steven Guilbeault laid out 137 conditions that Equinor must meet, including protecting fish habitat and migratory birds.
Shortly before releasing the decision, the government also said it will develop requirements for new oil and gas projects, including Bay du Nord, to achieve net-zero emissions by 2050.
Any potential blowout – an uncontrolled release of oil – from the offshore project would endanger whales, fish and seabirds, said Gretchen Fitzgerald, national programs director for Sierra Club Canada Foundation.
Canada Action, a pro-resource development group, said the oil produced offshore of Newfoundland and Labrador has relatively low carbon intensity, and the project would create many years of jobs.
Recommended Reading
Endeavor Energy Founder Autry Stephens Dies at 86
2024-08-16 - Stephens created a legacy in the Permian Basin that Endeavor said will continue to shape the future of the company.
Halliburton Working to Assess Cause, Impacts of Cyberattack
2024-08-22 - A Halliburton spokesperson said the company had activated a response plan and was working internally and with external experts to remediate the “issue.”
Souki’s Saga: How Tellurian Escaped Ruin with ‘The Pause,’ $1.2B Exit
2024-09-11 - President Biden’s LNG pause in January suddenly made Tellurian Inc.’s LNG export permit more valuable. The company’s July sale marked the end of an eight-year saga—particularly the last 16 months, starting with when its co-founder lost his stock, ranch and yacht in a foreclosure.
Cormetech Appoints Patricia Martinez to President, CEO
2024-08-20 - Cormetech’s former President & CEO Mike Mattes will now serve as chairman of the board.
Wildcatter at Heart: Autry Stephens (1938-2024)
2024-08-18 - Legendary wildcatter Autry Stephens, founder and chairman of Midland Basin E&P Endeavor Energy Resources, stayed true to his “never sell” strategy.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.