Newfoundland Government News

Global oil companies are pumping billions of dollars into offshore drilling, reversing a long decline in spending on the decades-long projects, including some in the remote iceberg waters far off Canada's Atlantic coast.Surging oil prices are encouraging the investments, along with Europe's mounting energy demand as the Ukraine-Russia war drags on. Offshore production sites are more expensive to build than onshore shale, the last decade's investment darling. But once they are up and running…

According to a report in the Chronicle Herald, the Newfoundland government is not bowing to pressures from big oil to reduce its royalty rates from the proposed $5-billion Hebron heavy oil project in the North Atlantic. In April, it was announced that the Hebron project was being suspended after its partners were unable to reach a development agreement with the government of Newfoundland and Labrador. Hebron, located 350 km off the Newfoundland coast, is estimated to contain 731 million barrels of oil. Oil majors with a stake in the project include ExxonMobil, Chevron, Petro-Canada and Norsk Hydro Canada Oil and Gas Inc. (Source: http://thechronicleherald.ca)