Gulf of St Lawrence: Industry Challenges and Response Paul Barnes Manager, Atlantic Canada Canadian Association of Petroleum Producers October 19, 2011 History of Exploration in the Gulf of St. Lawrence 10 offshore wells drilled and many kilometers of seismic collected Most wells drilled in 1970-80 s: 5 - no hydrocarbon shows; 4 - minor shows; and 1 - significant gas discovery. Old Harry prospect was first identified in the early 1970 s. Recent activity: - Corridor undertook Seismic Survey in 1998/2002, and; - Geohazard Survey conducted in 2010
Gulf of St. Lawrence Basins There are two basins from which petroleum reserves could be located in the Gulf: Anticosti Basin: - Ordovician-Silurian Age; and - About 415-490 million years old. Maritimes Basin: - Mid-Devonian to Permian age; - About 280-390 million years old; - Rock layers in the basin are mostly sandstone and shale; - Mostly terrestrial (land derived) sediments; and - One marine rock layer Windsor Group limestone, gypsum and salt. Maritimes Basin and Labrador Offshore Area Covers most of the southern Gulf of St. Lawrence. Old Harry prospect is in the NE part of the basin. Colours represent depths to the bottom of the basin. Historic well locations indicated by small black circles.
Stakeholder Issues Interprovincial Forum on Oil & Gas was held on Iles-de-la-Madeleine on April 8-9, 2011. Stakeholders gathered from coastal communities, municipalities, and representatives of fishermen, sea farmers, tourism and environmental associations to discuss issues around oil and gas activity, such as: Potential impact on the economy of the coastal communities fishery and tourism Disturbance of the fragile eco-system environment Shared resources between five provinces (NL, PQ, NB, NS, PEI) importance to collaborate in this multi-jurisdictional area Speed of development of hydrocarbon doesn t have to be fast, more important to understand all effects first Regulation and legislation essential to share information take an integrated, regulatory approach Forum Recommendations Development must be integrated collaboration is needed - focus on the environment, fishery, and tourism industries. Request the Federal government and the government of NL do an environmental assessment, including a panel review. Request the environmental assessment be focused on ecosystems and potential impacts of development - development must be done in such a way as to protect fishery and eco-system. Review of federal and provincial legislative frameworks. Encourage participation, consultation, and informationsharing with coastal populations. Define a royalties regime that will reflect and benefit those in closest proximity to resource.
Agreement signed relating to Quebec s offshore resources in the Gulf The Government of Canada and the Government of Quebec signed an agreement in October, 2011 relating to the ownership and management of offshore resources in the Gulf of St. Lawrence. Agreement replicates the Atlantic Accord agreements between the Government of Canada and the Governments of Newfoundland and Labrador and Nova Scotia. A joint secretariat will be set up to oversee federal-provincial responsibilities regarding the management of the offshore resources. The Quebec government has a moratorium in place on the exploration and development of offshore resources. A decision regarding the moratorium will be made after an environmental assessment study is completed in 2012. Consultation in Quebec is ongoing this Fall. Integrated Management (IM) Canada s Oceans Act A collaborative way of making decision on how Canada's marine resources can best be developed and protected. (DFO re. integrated management) Based on legislation: Oceans Act 1997 Ecosystem-based with socio-economic considerations Opportunities via IM: marine conservation / protection; marine ecosystem health and environmental controls; science; wise management of resources; increased communication among stakeholders Comprehensive, transparent process seeking appropriate balanced approach Example of a well established process that includes offshore petroleum activities within the realm of ocean users is ESSIM, offshore NS Gulf of St. Lawrence is reflected as a current priority area for IM on the DFO website
Gulf of St. Lawrence IM Status of IM in the Gulf of St. Lawrence: EA & Overview report - scientific understanding of ecosystem to guide ocean planning & management Ecologically and Biologically Significant Areas (EBSA) work compete Social, Economic and Cultural Overview and Assessment to help support/drive IM planning A general Conservation Objective to each of the 10 EBSA was developed Threat and Pathway modeling (risk analysis underway) Next Steps: Governance structures internal sector working group and external discussions Begin discussing a draft IM plan by April, 2012 with interested stakeholders Exploratory Drilling - Examples of environmental protection measures Design and implementation of an Environmental Protection Plan. Design and implementation of a Waste Management Plan. Adherence to the Offshore Waste Treatment Guidelines. Design and implementation of contingency plans. Use of environmental criteria (to minimize emissions) in the selection of equipment. Communication with fishing industry. Use of seabird, marine mammal and fisheries observers.
Benefits that the Oil and Gas Sector can bring to a Region Opportunities for local businesses. Spending on research and development. Education and training enhancements. Infrastructure development (e.g., construction, fabrication, supply service, etc.). Jobs/employment. Royalties and taxes paid to government revenues support social and other programs (e.g., hospitals, schools, etc.). Spinoff benefits purchase of goods and services from other industries (e.g., retail, construction, fabrication, scientific and engineering, etc.). Summary and Conclusions Gulf of St. Lawrence prospective area with industry interest in further exploration. Focus on undertaking exploration drilling in the near future, with input from stakeholders, in a safe and environmentally responsible manner. A number of stakeholder concerns have been identified through regional forums and open houses. Integrated Management discussions is a good tool for addressing many of the issues being raised in the Gulf region. A large number of approvals are required to obtain an approval to drill a well within Canada s rigorous offshore regulatory regime. Industry activity can bring tremendous benefits to the region.
Thank you. Questions? www.capp.ca