Environment Minister Steven Guilbeault must decide in the next few days whether to authorize the exploitation of more than 300 million barrels of oil in the marine environment off the coast of Newfoundland. His cabinet refuses for the moment to say if the project, which would require 60 drillings over the next decades, is consistent with Canada’s climate objectives. One thing is certain, it would be carried out in a region recognized for the richness of its biodiversity.
The project, named “Bay du Nord”, is led by the Norwegian oil company Equinor, which holds exploration permits in an area 470 kilometers off the coast of Newfoundland. It is in this area, where the seabed is more than 1,000 meters deep, that it wishes to drill up to 60 operating wells, while continuing exploratory drilling.
According to company estimates, more than 300 million barrels of oil could be exploited by 2058 (another more recent estimate puts it at 1 billion barrels), reads the preliminary report of the company. Impact Assessment Agency of Canada (EIAC). It assessed the Equinor project, which would pump its first barrels by 2028, under legislation passed by Stephen Harper’s government.
“Taking into account the implementation of the mitigation measures, the Agency concludes that the proposed development of Bay du Nord is not likely to cause significant adverse environmental effects,” reads the report. devaluation. The AEIC considers that “the measures recommended to mitigate potential environmental effects”, such as the impacts of an oil spill or the effects on marine ecosystems, are sufficient to reduce the risks.
The final version of the AEIC report will be published when Minister Guilbeault renders his decision, his cabinet said. This must take place by March 6, after the government decided to allow itself three more months to decide the fate of the project.
Biodiversity
It is true that the federal assessment highlights several environmental issues. Equinor’s project is located in an “ecologically and biologically significant area of the United Nations Convention on Biological Diversity”, but also in “vulnerable marine ecosystems”. Drilling will also be conducted not far from recognized critical habitats of endangered species, bird sanctuaries and an important “marine refuge” set up by the Trudeau government to achieve its ocean protection goals.
This maritime region is also recognized as an important habitat for several species of commercially exploited fish, 14 species of birds at risk as well as about fifteen species of marine mammals, which are particularly sensitive to underwater noise pollution. Equinor plans to do seismic surveys there.
As for the risks of an oil spill at sea, the AEIC’s interim report considers these to be minimal. The document also mentions that in the event of an oil “eruption” out of control, a “capping system” may have to be installed at the head of the operating well. But the deployment of this system would take “18 to 36 days”, since this equipment must be transported from Norway or Brazil.
Climate test?
Beyond issues of protection of the marine environment, is carrying out the Bay du Nord project compatible with Canada’s climate objectives? “Since the project is currently being assessed, the Minister cannot comment on this point. The details of the project will be published as soon as the decision is made, ”replied the office of Minister Steven Guilbault, in an email sent on February 4.
The minister’s office also said the CNSA “considered direct greenhouse gas emissions associated with the construction and operation of the project,” as part of its assessment. “In November 2020, Equinor announced a corporate commitment to achieve net zero emissions by 2050. To achieve this, Equinor is committed to reducing emissions from its oil and gas production, while investing also in renewable energies and new technologies”, it was specified in the same email.
In interview at Duty, in December, Minister Guilbeault affirmed that new oil and natural gas exploitation projects will have to comply with increasingly strict climate regulations. In particular, he cited the desire to cap and then reduce emissions from the fossil fuel industry as an example.
Holder of the Chair of Energy Sector Management at HEC Montreal, Pierre-Olivier Pineau believes that the Bay Nord project can be “compatible” with Ottawa’s climate ambitions, since it is the combustion of oil, here or elsewhere in the world, which generates the most climate impacts. “But to the extent that more problematic countries than Canada could take over oil production, I believe it is more advantageous to accept the project and regulate it severely. On the other hand, we should work twice as hard to reduce our oil consumption.”
“Canadians are among the highest consumers of oil per capita in the world. Our lifestyles are not changing fast enough for us to be considered a leader in the fight against climate change. The federal government could refuse this project to project an environmental image, but it would only be a smokescreen to hide our operating methods which are problematic.
Environmental groups that participated in CNSA’s consultations all said the Trudeau government should not allow Equinor’s project. For Greenpeace, this project is inconsistent with the fight against climate change. “The Trudeau government must choose which side of history it wants to be on: either it allows this project and fuels the climate crisis, or it decides to help communities and workers by supporting a just transition that would diversify the climate. economy and to create green jobs”, argues its spokesperson, Patrick Bonin.