Canada's East Coast offshore oil and gas industry: a backgrounder

A comprehensive overview of Canada's offshore oil and natural gas resources is provided, and their significance to the economy of the Maritimes and of Canada as a whole is assessed. The overview describes the ongoing offshore energy projects, the facilities used to produce offshore resources, the processing and transportation of offshore oil and natural gas, the measures taken to protect the environment, the regulatory regime in place and the scientific, technical and economic benefits accruing to the local as well as the national economy. To the end of 1998, some $ 8 billion have been invested by the oil and gas industry in seismic surveys and drilling to explore petroleum potential off Canada's East Coast, and another $ 10 billion had been earmarked for the construction of production and transportation facilities. In September 1998, companies bid a record $ 175 million for additional licences to explore for oil and gas off Newfoundland during the next five years. In 1999, companies bid yet another $ 592 million for exploration rights off Nova Scotia. Four significant projects are currently in development or in production: (1) Hibernia - a crude oil producing field off Newfoundland, (2) Terra Nova - a crude oil development off the Newfoundland coast, (3) Cohasset-Panuke - a crude oil production operation off the the Nova Scotia coast, and (4) the Sable Offshore Energy Project -- a natural gas project of Nova Scotia. A list of sources for further information is appended. Maps. tabs., figs