.jpg)
Moreover, McEachern sees the Deep Panuke facility, even though it isn’t yet operational, as proof of a mature sector, a template for future development, and most importantly, a marketing tool. “I’m looking at it (Deep Panuke) as part of an attraction plan to get exploration jump-started again, because we have not had an exploration well in this province for at least four years,” he said. “If we are going to attract other people to this area, and advise them, and suggest they risk huge amounts of capital here, you have to point to some successes, and Deep Panuke is essentially that. It is just as important a marketing tool for the province as it is a pool of natural gas for Encana.”
McEachern puts a lot of faith in the growth that can come out of a successful Deep Paunke, but marketing offshore drilling isn’t an easy exercise. Exploration is expensive, and having to work underwater adds huge costs to the equation, generally in the range of $75-to-$100-million a well.
Encana is hoping to double its overall production in the next five years, but it’s not perusing any other offshore projects. “We don’t have any exploration plans off Nova Scotia,” said Encana spokesman Allan Boras. “We’re focusing on developing Deep Panuke and bringing that on in a cost efficient and timely manner, but we have a large land base onshore and plenty of opportunity to grow [there].”
And then there’s the oil spill in the Gulf of Mexico [SEE PAGE XX]. Never mind that it’s oil, not natural gas, and under 1,500 meters of water, not 45 – offshore drilling isn’t the place to find good publicity. For someone who spends his time championing the offshore, McEachern recognizes this as a significant problem. “The public is still waiting to see what happens here, and it really is too early to tell, but I don’t think anybody should be smug enough to say this doesn’t impact us… it’s obviously going to impact us. “ he said.
For Encana, MacLean made sure to point out the apples to oranges comparison, but said safety was always a concern. “We’re taking our drilling operations very seriously, we’ll continue to monitor our activities off shore, and we’ll continue what we’ve been doing since January,” she said.
Just about a year from first gas, Encana can only continue as it has, determined to stay on budget and on target. It would be nice to see the project signal a renaissance for the Nova Scotian offshore, but it’s too early to tell.
