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In Cunningham’s opinion, the most significant outcome of this latest project is the confidence it creates among investors and the ripple effect this has on the entire economy of Newfoundland and Labrador. “No matter what business you are in, if you have economic optimism, you have people who will invest. There’s no question that (NOIA) members who are on the cusp of investing in their businesses, will invest (as a result of Hibernia South) and that fuels further growth.”
Paul Barnes, Atlantic Canada manager for the Canadian Association of Petroleum Producers (CAPP), agrees. He believes the significance of the project is much greater than the 223-million barrels of oil it is expected to produce; even greater than the jobs it will create or the revenue it will generate.
To him, Hibernia South represents the future promise of Atlantic Canada’s oil and gas industry. The development of this field,and others like it, means increased profitability, productivity and longevity of offshore oil production in Canada’s east coast, he says. “Anytime you can produce another field it means a lot of industry growth.”
Asked to describe the region’s oil patch, 20 years from now, Barnes replies: “I see new discoveries in oil basins that are not discovered yet. I see new production from fields that are not commercialized at the moment. And I see production facilities whose life span has been extended because of subsea tiebacks.”
Cunningham says his members have benefited from the slow, steady growth of Newfoundland and Labrador’s oil sector. It has allowed the industry’s goods and service providers to build their capacities to the point that the Province is now recognized around the globe as a worldclass centre for service and supply excellence. That means NOIA members are poised to take full advantage of new offshore developments like Hibernia South. “We know what opportunities are there and we know the right time to invest.”
Cunningham is equally certain that the province has the ability to keep pace with continued expansion of its oil patch both in terms of machinery and manpower. “There are lots of Newfoundlanders and Labradorians all over the country who are looking for an opportunity to come home to work.”
Barnes concurs, adding that the longterm nature of projects like Hibernia South is an incentive to return. “You can’t just stop that overnight.”
And thanks to advancements in technology and a better understanding of the size and scope of reserves, smaller oil and gas accumulations that were discovered in the early days of East Coast Canada exploration are now being extracted. Plumbing the depths of the ocean just keeps getting better for Newfoundland and Labrador.
