Feds Approve New Offshore Oil Exploration Permits

Less than a month after the end of the UN conference on biodiversity in Montreal (COP15), the Trudeau government and that of Newfoundland and Labrador granted more than 12,000 km2 new oil exploration permits in the marine environment, in a region recognized for the richness and fragility of its ecosystems.

In a new effort to double oil production in Canadian east coast waters, large areas of the sea were auctioned off last year. Following this approach led by theOffice Canada–Newfoundland and Labrador of the offshore hydrocarbons (C-TNLOHE), five proposals were selected solely on the basis of the “total amount” that the bidding company was committed to investing in exploration over the next six years.

Five permits were therefore granted on January 15th. They are valid until 2032 and they total 12,227 km2. To obtain them, the four companies involved made exploration investment commitments totaling $238 million.

ExxonMobil Canada and its partner have thus promised to inject $181 million in fossil fuel research work on a “plot” of 2676 km2. BP Canada Energy Group and Equinor have planned $40 million in three sectors totaling 6891 km2, located not far from a “significant” oil discovery area. BP Canada is a subsidiary of BP, responsible for the worst marblack era of american historywhich occurred in the Gulf of Mexico in 2010.

BP Canada plans to add 16.5 million dollars in the exploration of a territory of 2660 km2 which straddles the largest marine biodiversity protection area in eastern Canada. This “marine refuge” was established in 2019 to help achieve the Trudeau government’s marine environment protection target. However, oil drilling is not prohibited there.

Environmental standards

Is the granting of new oil exploration permits in the marine environment compatible with Canada’s climate objectives and biodiversity protection commitments? The office of the Minister of the Environment did not answer our questions, preferring to redirect them to the office of the Minister of Natural Resources, Jonathan Wilkinson.

Without answering our questions directly, Minister Wilkinson’s office pointed out that “the Canada-Newfoundland and Labrador Offshore Petroleum Board is an independent regulatory body that meets the highest standards of safety and Environmental Protection “. It is added that “a tendering process does not in itself authorize the development of the offshore area”. Any proposed development would “first be subject” to review by the Impact Assessment Agency of Canada.

Biologist specializing in marine mammals and the functioning of ecosystems, Lyne Morissette deplores the decision to open new marine areas to oil exploration. “It is shameful to see that, only a few days after having hosted COP 15 on biodiversity and making great announcements to look good, we are making such decisions which go completely against the vision and the means that we made a promise to protect our oceans and our planet,” she insists.

“Oil exploitation is not a solution compatible with what we must bequeath to future generations. In addition, drilling licenses overlap important marine protected areas and other marine refuges. It’s completely incoherent,” adds M.me Morissette.

She also says that the impacts of any spill would be felt in the very long term. “We are still seeing the consequences of what happened in 1989 with the sinking of the Exxon Valdez oil tanker in Alaska. Several animal populations are still not recovering. It’s been over 30 years. We really don’t have the luxury of risking that again in our waters, or anywhere else in the world, for that matter. »

The granting of new licenses off the coast of Newfoundland is part of the province’s desire to double its offshore oil production after 2030. It would then reach 650,000 barrels per day. C-TNLOHE also plans to launch four other calls for tenders by 2029with the objective of drilling 100 boreholes.

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