Bud's Offshore Energy (BOE)

The Canada-Newfoundland Labrador Offshore Energy Regulator (C-NLOER) informs that once again no bids were received for tracts in the Eastern Newfoundland or Labrador South regions. According to this article, the outcome (no bids)was the same from 2021-2024.

Difficult operating conditions, high costs, and relatively modest oil price projections are no doubt factors contributing to the absence of bids. Energy NL has also pointed to the “complex, inconsistent and burdensome regulatory system” as a contributing factor.

Newfoundland’s newly elected Premier, Tony Wakeham, has said his Progressive Conservative Government will advocate for the cancellation of the emissions cap as it is a cap on production. He also supports incentives for offshore oil and gas projects such as an investment tax credit or the former Petroleum Incentive Program and indicated he would work with Energy NL to review incentives that could be implemented provincially.

The C-NLOER is committed to “review its land tenure system in collaboration with governments and others, to identify opportunities to enhance competitiveness in the Canada-Newfoundland and Labrador Offshore Area.”

On a separate policy matter, C-NLOER is applauded for announcing offshore safety/environmental incidents, including significant near misses, without delay. In the US, you have to scour BSEE investigation reports to find out about significant incidents or wait a year or more until the incident table is updated. This is inexcusable!