HALIFAX – Deep water ocean drilling is the hot topic when it comes to Nova Scotia’s energy future at the Core Energy Conference in Halifax on Tuesday.
The conference is hearing from many of the movers and shakers of the energy business, including Shell and British Petroleum (BP), and covers topics like resource development, renewable energy, hydraulic fracking and electricity.
Energy Minister Michel Samson says there are exciting opportunities out there for Nova Scotia to tap into, like offshore development and expansion of the tidal industry, for fueling the province.
“We’ve been doing extremely well, Nova Scotia, in the past, was heavily dependent on coal as our primary source of electricity and we’ve seen that dependence drop from a high of 90% down more recently around 57%, and that has been with the development of our offshore industry, with the natural gas that’s coming ashore, as well as the growth of our renewable energy industry,” said Samson.
Samson sees Nova Scotia as the “place to be” when it comes to the energy industry, despite the decline in oil prices. With wind power, and the primary reliance on coal and natural gas, the province hasn’t been badly impacted.
The government is also trying to expand the benefits out across the province, having Nova Scotians working on the projects and having local companies supplying whatever products are needed.
Samson says the decision to continue exploration off the coast of Nova Scotia shows the confidence that the investment is worth it, and there’s something significant to find.
“We know that because of the falling oil prices that both Shell and BP have cancelled exploration projects around the world, and the fact that they have maintained their projects in NS is not only a sign of confidence in Nova Scotia, but it’s gotten the attention of industry around the world.”
The reality of the drop in oil prices is something that Rob O’Connor from BP says the company is very aware of, but isn’t scaring them away from pursuing Nova Scotia for offshore exploration.
“What keeps this project alive is that it has potential to find large amounts of hydrocarbons,” O’Connor said.
The company acquired a 7000 square-kilometre seismic program last year, which O’Connor said will be used, “to describe where well locations might be.”
With four licenses for deep water exploration in Nova Scotia, as well as support from the local community, contractors and a stable working area, the project is on track. O’Connor says the first drilling will happen in July 2017, and the location of that well will be announced in 2016.
“In the meantime, we’re working on having some of the hydroelectricity coming from Muskrat Falls project in Newfoundland (and Labrador) that will be part of our mix, the growth of our renewable sector which is doing very well, and as well the development of our tidal industry,” said Minister Samson.
O’Connor maintained that though BP is “very concerned about the price of oil,” they would do the exploration now at this price, and they only project it to increase.
With files from Steve Silva.
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