While the federal green light for the Bay du Nord offshore oil project has drawn strong environmental criticism, the people of Newfoundland and Labrador are breathing a sigh of relief. The industry has become, after the cod moratorium, the lifeline of a province in debt. The duty went to meet him.
Once vibrant, downtown St. John’s, Newfoundland has been pretty deserted for the past two years. “For Sale” signs and barricaded windows abound. Because as our taxi driver, Gerry Evans, said while cruising the streets of the capital, “it’s all about oil in this province”.
Tourists have abandoned the paradise of whales and icebergs and, at the same time, the oil companies have put several exploration and drilling projects on hold. Even the multinationals ExxonMobil and Suncor have relocated their offices to the suburbs to reduce their operating costs.
The province’s dependence on the oil industry leaves no doubt. In 2021-2022, royalties accounted for 13% of the province’s revenue, according to the most recent budget.
Added to the impact of the pandemic, these upheavals mean fewer customers in St. John’s — for restaurants, bars, hotels and other local businesses. “The oil boom [dans les années 2010] caused a lot of investment in St. John’s, says Krista Crummell, bartender at Broderick’s Pub. But today, people have to sell their house, their business… They try to make ends meet, but it’s more and more difficult with inflation. »
Around her, some people had to choose between grocery shopping and heating their homes this winter, she says. This is why the development of projects like Bay du Nord – or even West White Rose, of which Cenovus Energy has just announced the takeover – is not enough to reverse the trend, according to the bartender.
“Even if there are new oil projects, people no longer have the means to live normally. The province intends to raise the minimum wage to $15 an hour… but that would have covered inflation ten years ago! »
Other merchants are more of the opinion that these large-scale projects make it possible to keep young workers at home. “If Bay du Nord does not go ahead, many young people who have found work will have to leave… If there is an oil project as clean as possible, and from what everyone is saying, it really is one of the greenest, why not? says Byron Murphy, owner of men’s clothing store Byron’s Upstairs.
Although he’s seen his neighbor — an English-style pub — and many other restaurants go bankrupt lately, he remains hopeful. “I don’t see in which world we could totally do without petrol. So it’s good to regulate the industry, but not at the expense of our small province. Newfoundland seems to get kicked in the pants all the time from the rest of Canada. »
“Carbon neutral” project in 2050
The government of Newfoundland and Labrador claims that Bay du Nord will be “cleaner”. The Norwegian company Equinor, majority manager of the project, estimates that it will emit less than eight kilos of greenhouse gases for each barrel of oil produced, against 16 kilos on average for similar projects elsewhere in the world. In November 2020, the multinational also stated that it wanted to achieve “carbon neutrality” by 2050, in particular by reducing emissions from its oil and gas production.
“It was the right thing to do,” Premier Andrew Furey told a packed house last week at the annual convention of Energy NL, the oil industry association. and gas in the province. “We are in the best possible position to meet global demand for low-carbon oil. We own it, we should be proud of it, and we can rejoice that it can be distributed around the world. »
The discourse, shared by the oil companies and the federal government, seems to convince the youngest in the province to get involved in the industry.
“It would be really cool to work in the oil sector,” says Corbin Smith, strolling between the booths of the congress. The young mechanical engineering student volunteered to help organize the event. “I see how cutting edge technology it is,” he says.
A few kiosks further, two young people are rather under the banner of Wood, their internship environment, a multinational specialized in the field of energy. They present their latest project, a robot that detects gas leaks. Sagadul Hassan and Mark Johnson are also of the opinion that the sector is interesting for young shoots who wish to invest in ambitious projects.
“There aren’t a lot of autonomous robotics jobs here, and I love robots, so I couldn’t pass that up,” says Mark.
Even if all three are aware of the impact of oil fields on the environment, it is a sector that seems essential to them. “It’s important to reduce our carbon footprint, but here in Newfoundland, the oil industry is central; that’s half of the job offers when you’re looking for work in engineering,” the student continues.
His colleague, who arrived just three months earlier from Bangladesh, says he saw and felt the effects of global warming firsthand. He would like to see more green energy projects develop in the province and sees a lot of potential there, especially with wind energy, given the island’s weather conditions. “But obviously Newfoundland isn’t in the best shape economically, so I guess anything that makes money is good for the people here,” agrees Sagadul Hassan.
Shortage already present
For the past few months, the tide has been turning. St. John’s merchants are seeing their sales rise to pre-pandemic levels. Platforms off the coast are back in service.
A revival noted by Jeff Coffey, project manager at Crosby Group, a potential subcontractor for the Bay du Nord project. The company would provide the labor for many stages of the construction of the platform, but also its long-term maintenance. “The demand for all of our services would increase with the addition of another offshore facility,” he admits.
Although he is delighted with the possible developments in the sector, he disputes the provincial government’s rhetoric that the job creation linked to this project will stimulate the economy. Equinor promises to create 11,000 jobs.
Already, at Crosby Group, the schedules are full: all the specialized workers have found a job. An observation confirmed by Jodie Greeley, of NSB-Omega, a recruitment company specializing in the oil industry.
“Things have accelerated a lot, there are a lot fewer people in the industry looking for a job, there is even a labor shortage. All these companies are looking for similar profiles, be they project engineers, designers or accountants… So we must above all organize the movement of workers from one project to another. »
However, she is not worried about being able to meet the demand. “We’ve done that in the past with a lot more projects going on, and there’s going to be a lot of people coming out of college, so it gives them some great options. »
If it went ahead, Bay du Nord would be the fifth oil project in Newfoundland and Labrador. With supply chain issues and inflation, Equinor has yet to issue a final decision, expected within two years. Commissioning is expected to start in 2028.