Industry, Energy and Technology
April 28, 2021
Government Releases Oil and Gas Industry Recovery Task Force Report
The Provincial Government today released the Report of the Newfoundland and Labrador Oil and Gas Industry Recovery Task Force (Task Force). The report was submitted to the Honourable Andrew Furey, Premier of Newfoundland and Labrador and the Honourable Andrew Parsons, Minister of Industry, Energy and Technology, by the Newfoundland and Labrador Oil and Gas Industry Development Council (Council) on April 27, 2021 and can be found online here.
The final report contains recommendations for concrete actions that can be undertaken to drive the recovery of the industry. The Task Force made 32 main recommendations and 20 ancillary recommendations.
The Provincial Government will now move forward with review and implementation of recommendations that fall under its control. The remaining recommendations fall under the purview of other entities including the Federal Government and the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB). Minister Parsons has forwarded a copy of the report to the Honourable Seamus O’Regan, Federal Minister of Natural Resources, and the C-NLOPB for their review and action.
Recommendations were developed through consultations with industry, labour, the Provincial Government, the Government of Canada, the C-NLOPB, industry associations, small and medium-sized enterprises and competing jurisdictions. There were a total of 63 stakeholder meetings and 13 written submissions.
The Provincial Government is supportive of the recommendation to establish an implementation oversight committee, comprising of representation from the Provincial Government, Federal Government, Task Force, Council, C-NLOPB and other industry associations to ensure the recommendations are actioned in an appropriate and timely manner.
Reporting through the Oil and Gas Industry Development Council, the mandate of the 90-day Task Force was to identify immediate actions to sustain the Newfoundland and Labrador oil and gas industry in the short-term and drive its long term recovery.
The Task Force was required to deliver a final report which details recommended actions, timelines, and associated accountability for implementation. It was also tasked with developing recommendations for eligibility parameters and prioritization criteria for the $320 million Offshore Oil and Gas Industry Recovery Assistance Fund (OGIRA).
The Task Force delivered its OGIRA recommendations to the Provincial Government on November 18, 2020 and submitted its final report to Council on March 12, 2021; following review and discussion by the Council, it was submitted to the Provincial Government on April 27, 2021.
Task force members were selected following nominations from the Oil and Gas Industry Development Council, Noia, Canadian Association of Petroleum Producers, labour, Newfoundland and Labrador Environmental Industry Association and TechNL. A diverse set of criteria was used that allowed for the selection of individuals with the appropriate skills and experiences necessary to contribute to driving the recovery of the Newfoundland and Labrador oil and gas industry.
The task force was structured under four main work streams:
- Policy and regulation;
- Exploration and development;
- Energy transition; and
- Supply chain.
“I want to express my sincere appreciation to all members of the Oil and Gas Industry Recovery Task Force, who worked on a volunteer basis, for their dedication and many hours of work to help ensure that Newfoundland and Labrador’s oil and gas industry continues to be a significant contributor to the economic and social well-being of this province. These recommendations will help guide key priorities and actions to support the recovery of our province’s oil and gas industry.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“It has been inspiring to see governments and industry working together on sustaining the offshore oil and gas industry in Newfoundland and Labrador over the past weeks. We will continue to work together as we now turn our focus to implementing recommendations from the Task Force Report, so we can encourage exploration in our offshore, continue to be globally competitive and ensure our regulatory processes are in-line with international standards and best practices.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
“We are pleased to present the report and recommendations of the Newfoundland and Labrador Oil and Gas Industry Recovery Task Force. It is critical that responsibility and ownership for the economic development of Newfoundland and Labrador’s oil and gas resources is prioritized. It is also important to reflect on the global energy transition and recognize Newfoundland and Labrador’s oil and gas industry’s skills and ability to reduce emissions and create new value chains in support of net zero by 2050. The work of the Task Force is complete and we now look forward to the delivery of the implementation framework as outlined in this report.”
Oil and Gas Industry Recovery Task Force
“The Task Force’s discussions covered virtually every aspect of Newfoundland and Labrador’s oil and gas value chain and we are very grateful for the enthusiastic response and participation of the stakeholders. Our deliberations were frequent, spirited and always resolute in our belief that our province’s oil and gas industry is and must continue to be a significant contributor to the economic and social well-being of our province and Canada.”
Oil and Gas Industry Recovery Task Force
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Issued by the Government of Newfoundland and Labrador on April 29, 2021.