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Without assistance from Ottawa, Newfoundland and Labrador's offshore sector paints a dark picture of the future

Industry stakeholders make virtual plea to Prime Minister Justin Trudeau

A file photo of the production platform at Hibernia operated by Exxon Mobil. —Submitted
A file photo of the production platform at Hibernia operated by Exxon Mobil. - Contributed

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Olive Tapenade & Vinho Verde | SaltWire

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ST. JOHN'S — What has, for some time, been seen as gloomy, grey frustration with the wait for a federal response to requests for help for Newfoundland and Labrador’s offshore oil industry took on the darker shade of desperation Tuesday.

Premier Dwight Ball and Natural Resources Minister Siobhan Coady were joined by an online panel of presenters from the oil and gas sector, along with others associated with the industry for an online news conference.

But unlike the regular virtual public health updates related to N.L.’s COVID-19 response or Monday’s announcement on funding help for the tourism sector, the message delivered Tuesday wasn’t directed at anyone in this province.

It was addressed to Justin Trudeau, Parliament Hill, Ottawa.


Premier Dwight Ball and Natural Resources Minister Siobhan Coady took part in an online panel discussion Tuesday on the challenges facing Newfoundland and Labrador’s offshore sector and the need for federal assistance. — Screengrab from video.
Premier Dwight Ball and Natural Resources Minister Siobhan Coady took part in an online panel discussion Tuesday on the challenges facing Newfoundland and Labrador’s offshore sector and the need for federal assistance. — Screengrab from video.

“Our plea today is directly to the prime minister and members of his government,” said Charlene Johnson, chief executive officer of Noia, the industry association representing more than 500 business, although that membership is steadily dwindling

“Whenever a Noia member cancels their membership, we conduct an exit interview, and in the last couple of weeks, there are at least a dozen I know of who are closing their offices and likely won’t return,” said Johnson.

It’s not new information.

Johnson and others in the sector have been setting off alarms all spring, ever since the economic effects of the COVID-19 pandemic added to an oil price slide already underway because of a production war primarily involving Russia and Saudi Arabia.

Charlene Johnson. - SaltWire Network File Photo
Charlene Johnson. - SaltWire Network File Photo

They point to exploration oil rigs parked in Bull Arm and perhaps bound for jurisdictions where government incentives are already in place; they cite the Bay du Nord project being put on hold and the Terra Nova FPSO halting production, with a question if and when it will resume; and they indicate the growing list of well-paying jobs melting away.

“Almost 70 per cent of our members have laid off employees, with 60 per cent saying more are coming,” said Johnson.

Early in his remarks, Ball offered what might have been the most jarring figure.

“We estimate that between industry cancellations, between project deferrals and suspensions, nearly $61 billion could be lost to the province’s GDP (gross domestic product) between now and 2038,” he said.

Trudeau and his cabinet are well aware of the numbers, which have been part of what has been a relentless lobby and a steady dialogue over the last couple of months; Ball went so far as to release a letter he sent to the prime minister.

So why hasn’t there been any concrete response?

“The challenge for the prime minister is to make sure where this fits into the national narrative,” Ball allowed, although he and others have insisted there will be Atlantic regional and cross-Canada implications in Newfoundland and Labrador’s woes.


“The challenge for the prime minister is to make sure where this fits into the national narrative." — Premier Dwight Ball


The latest push might be characterized as many singers gathered in a chorus, in the hopes that what has become a well-known, but now amplified, tune will result in immediate action at the federal level.

“It is no question the message we are revisiting today is one that all of us have said in many forums,” said Ball. “I think what is important is that we have a group of individuals here who share their stories and why it is important and why time may not be our friend.”

Tuesday’s roster of speakers included Darin King, executive director with TradesNL, which represents building trades unions; Kieran Hanley executive director of the Newfoundland and Labrador Environmental Industry Association; Terry Abel, executive vice-president (Canada operations and climate) of the Canadian Association of Petroleum Producers; Allison Rumbolt, a pilot for Cougar Helicopters, responsible for the transportation of offshore workers; and ,of particular note, Vianne Timmons, recently installed as president and chancellor of Memorial University.



They all offered facts and/or observations, and for the most part they did so while pointing at the clock and the calendar.

“By having us all assemble here, you are seeing how important, how critical that our voices be heard in Ottawa, that our voices be heard by the prime minister and that our industry needs support and needs it now,” said Coady.

“We’re in a time-sensitive situation here.”

Twitter: @telybrendan


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