Furey attempts to ease oil industry fears as O'Regan remains quiet on Bay du Nord support
CBC
Newfoundland and Labrador Premier Andrew Furey on Friday downplayed back-to-back setbacks for the offshore oil industry involving the federal government.
During an announcement about a plan to electrify the oil heating system at Memorial University, Furey tried to allay fears about the future of the oil sector, which is a key employer and a driver in the provincial economy.
Earlier this month, the Trudeau government delayed a final decision on the controversial Bay du Nord megaproject. This week, it delayed a call for offshore exploration bids.
"I fully appreciate the anxiety that this is causing, not just in the industry, more importantly to the families that are impacted and working in the industry," Furey said in response to a question from CBC News.
"I am optimistic that we can get to a good place."
Furey said people should not read too much into the delay for offshore exploration bids, echoing Thursday's statement by federal Natural Resources Minister Jonathan Wilkinson.
The premier also repeated his support for Bay du Nord, which if approved would become Newfoundland and Labrador's fifth field in production and the first to push offshore oil development into the deep waters of the Flemish Pass, about 500 kilometres east of St. John's.
Norwegian oil giant Equinor and its partners plan to use a floating production, storage and offloading vessel, commonly known as an FPSO, capable of producing up to 200,000 barrels daily.
Environmentalists have been pushing the federal government to not launch another frontier in Newfoundland and Labrador's oil industry, and for Furey to move Newfoundland and Labrador's economic priorities to other industries.
Furey said the oil produced by the province — including from Bay du Nord — could fill gaps in supply caused by boycotts sparked by Russia's invasion of Ukraine.
"Newfoundland and Labrador has a large role to play, as does Canada," he said.
Russia invaded Ukraine in February. If approved, it would take years for Equinor to bring Bay du Nord to production.
Furey also said Bay du Nord has a role in the transition to renewable energy, noting that oil produced by the province is relatively low carbon, a point that climate experts have criticized.
"I think there's an imperative that we really look to the federal government to ensure that this is going to be approved," he said.
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