It comes to no surprise that there are no bids (again) for offshore oil projects. But, no bids doesn't necessarily mean that we are out of options. This means that there is a chance for change.
By: Kassandra Drodge. BA, MA.
After 20 years of oil and gas being an economic driver and industry attraction for the province, there is a big hint that things are changing. Newfoundland and Labrador received no bids on offshore land for oil and gas exploration this year, and that’s actually a good thing.
Despite the Canada-Newfoundland and Labrador Offshore Petroleum Boards’ (C-NLOPB) efforts to auction off over 10 hectares of offshore land, there was no sign of interest, again (this happened in 2021). It seems that big oil companies, such as Equinor, who are in charge of potential projects like Bay du Nord, are growing more weary about the economic and environmental risks that run alongside new offshore oil projects.
Energy NL’s CEO Charlene Johnson blames uncertain regulations such as emission cap policies for the lack of interest, but, I would argue that the most uncertain part of creating new offshore oil projects is the project-based risks associated with developing over eco-zones, benthic zones, and most importantly, Canadian Protected and Conservation Areas.
The photo on the right is taken from the C-NLOPB website and highlights (in yellow) the land that was for sale, current oil wells (black dots), and overlapping ecological zones that are vital to animal migration, food systems, and ocean health (green yellow and blue bordered lines).
In general terms, these coloured areas are home to many sea creatures, and provide an ecosystem that supports sustainable resources for our inshore fishers and Indigenous fishers (despite challenges with commercial fishing).
Equinor, who specifically has had its eye on exploring these highlighted areas, has taken a significant step back in hindsight of causing massive ecological catastrophe, and at the request of the Norwegian public and international grassroots activists, who collectively demanded Equinor to get out of oil and gas and into renewables back in May 2024 at the Equinor AGM in Stavanger, Norway.
Photo from: https://www.equinorout.com/news/campaigners-staged-interventions-at-equinors-annual-general-meeting
To me, hesitancy around embarking on new oil and gas projects is a chance for Energy NL and the C-NLOPB to collaborate and consider shifting away from new offshore oil projects completely, and taking time to learn and strategize on how to properly incorporate offshore carbon reducing industries.
More work to evaluate regulations for sustainable industry practices, transitory actions to protect ecological relationships, and the potential for good green jobs, will attract more buy-in from energy companies who are exploring the same things. Energy companies and associated businesses need information to understand the risks and impacts of nature-based resource dependency. High quality and accurate information is what we should be seeking to ensure that we recognize the gaps between offshore assets and sustainable practices.
Equinor has paused Bay du Nord for 3 years already, assuming that it is because of uncertain economic conditions and efforts to expand its renewable portfolio (this was proposed at the 2024 AGM in Stavanger, Norway, receiving 6% shareholder support). Energy NL should be considering these challenges and changes and work with Equinor to look for alternative project solutions that steer away from the Bay du Nord project altogether.
Right now, there is a need for energy sources throughout rural/remote parts of Newfoundland and Labrador, combined with a lack of interest from our formerly most reliant industry, oil and gas. This is a supplier/needs issue that profit will not simply fix.
This problem must be approached from a needs-based community perspective to steer toward renewable projects that communities are proud of and that bring certainty to everyday lives.
A big focus on financial feasibility and transparent guidelines around planning, implementation, and maintaining these projects will be a big part of growing into a sustainable and successful province. Until we do this, we can expect to see “no bids on NL” as a common theme going forward.
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