Steven Guilbeault, federal environment minister, isn’t closing off future offshore oil development in Newfoundland & Labrador. However, he warns that it will be increasingly difficult for companies and environmental regulations to approve new projects.
French conversation with Radio-CanadaGuilbeault stated that it is up to the Impact Assessment Agency to decide on future offshore oil projects. This approval process has become more stringent.
He stated that it would be difficult for a new project “to pass the bar.”
Guibeault, a controversial Norwegian oil company Equinor, approved the Bay du Nord oil project earlier this month. It is proposed to be built approximately 500 km east of St. John’s. Guilbeault stated that he had determined that the project would not cause “significant adverse effects on the environment” through the implementation measures.
The Newfoundland and Labrador government and the oil industry celebrated the approval of the project, but it was criticized by environmental advocates who had been fighting to stop newfossilfuel emissions.
Equinor, which has not yet approved Bay du Nord, claims the project will create thousands of jobs and $3.5 Billion in revenue for the provincial government.
Although extraction is thought to produce lower emissions than other oil projects, it only accounts for 15% of total emissions. Recent estimates show that Bay du Nord could produce 300,000 to one trillion barrels of crude oil over its lifetime. This would allow it to generate 400 million tonnes of CO2. Bay du Nord would start production in 2028 if it is approved.
Guilbeault: New process for environmental assessment more stringent
Guilbeault stated that the Bay du Nord environmental approval process, which was established in 2017 by Stephen Harper’s previous Conservative government, was less rigorous then the 2019 process. He stated that no oilands or offshore projects are currently under environmental review.
He stated that there is nothing currently that would stop a company exploring and developing a project. “Before such project can be approved by the Federal Government, there are four to even five years ahead of them, and the more time that passes, the more unfavorable conditions will be for oil-related projects.”
Talk later with CBC Here & NowGuilbeault mentioned that Bay du Nord is required by the Impact Assessment Agency to achieve net-zero emission levels by 2050. He stated that the world must shift to renewable energy, but that there will still be an ongoing need for fossil fuels.
“In an ideal world, we could stop using fossil fuels tomorrow. He stated that it would be the best-case scenario.
“The reality is that it’s impossible.”
Guilbeault stated that new offshore oil project will be less attractive for companies as the federal Government increases emissions pricing. This is in the pursuit of reducing oil emission by 31% by 2030 compared to 2005 levels.
“Clearly, the world is moving towards a world with less and less fossil fuels and more renewable energy, clean technologies, such as hydrogen and wind power, offshore winds power,” he stated.
More information from CBC Newfoundland and Labrador
