Energy NL reacts to province’s Budget 2023, welcomes support for energy sector

World Oil Staff March 23, 2023

(WO) — The Government of Newfoundland and Labrador released its budget and Energy NL welcomes a number of the initiatives, including reinstatement of the offshore seismic program, support for the renewable sector, continuation of the Offshore Exploration Initiative, and assessment of natural gas opportunities.

The energy sector continues to be an economic driver, responsible for approximately 20% of provincial GDP and an approximatively $100 million contribution to the Future Fund.

“Overall, I see Budget 2023 as positive for the energy sector. The return of the offshore seismic program is important to our industry. Seismic data is used to help determine where exploration should occur and has the best chance of being successful,” said Charlene Johnson, Energy NL CEO.

“Moreover, it is used to attract investment into the offshore through the land sale process. Seismic will also play an important role as we look for possible locations to store carbon. Early research indicates our offshore has the potential to store all of Canada’s carbon emissions and seismic data can help us find the pathway to carbon storage and net zero,” Johnson continued.

There is an allocation of over $500,000 for the renewable sector, including increasing capacity for environmental assessment and regulatory oversight. Initiatives such as the green technology tax credit and Low Carbon Economy Fund may also help Energy NL members lower their carbon footprint and Energy NL looks forward to learning more about these initiatives and how its members can benefit.

“Continuation of the Offshore Exploration Initiative is important, as we have seen the program stimulate important offshore activity, including exploration for this year. The almost $5 million to assess natural gas in the Jeanne d’Arc Basin is also a positive step to help open another energy play for Newfoundland and Labrador,” Johnson commented.

Energy NL represents approximately 500 member organizations worldwide which are involved in the energy sector. Members are active in all areas of the supply and service sector and include a diverse representation of businesses that range from offshore supply vessels and helicopters, carbon reduction and sustainable technologies, health and safety equipment and training, engineering solutions and fabricators to law firms and human resource agencies.

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