Energy Review, Newfoundland and Labrador

Dr. Rex Gibbons, Minister of Natural Resources, today announced the release of a departmental report entitled Energy Review, Newfoundland and Labrador. The report deals with: (1)Energy demand,(2) energy supply, (3) energy efficiency, (4) energy and the environment, (5) energy prices, and (6) both onshore and offshore oil and gas activity. "The purpose of the report," Dr. Gibbons stated, "is to provide a detailed review of the province's energy sector. It is intended that the information presented be of use to a wide cross�section at the international, national, and provincial levels, including the energy supply industry, government departments and agencies and interested groups and individuals."

Energy and energy related activities constitute a significant component of the provincial economy. In terms of direct employment, the energy sector contributes on average about 3,000 person years annually. In recent years the Hibernia project has added considerably to the total, however. In 1995, for example, the province's energy sector - including Hibernia construction activity - accounted for about 8,700 person years of direct Newfoundland based employment.

Over the long term production phase, beginning 1997, annual direct Hibernia employment is estimated to be in the 800 -1,000 person years range. With hopes for the province's west coast onshore and offshore petroleum resources, and to the extent that other discoveries such as Terra Nova, Hebron and Whiterose begin production operations, additional petroleum sector employment will be realized, possibly a further 500 - 1,000 direct person years annually.

The minister highlighted that "Newfoundland and Labrador enjoys an overall energy surplus." This results primarily from the production and sale of hydroelectricity. In addition to the province's hydraulic resources, fuel wood is a significant energy contributor, especially to residential demand in rural areas of the province.

The minister concluded by saying that the report, "is part of government's continuing commitment to the full development and proper management of the provinces's energy resources. This requires a detail understanding of these resources, knowledge of their relationship to and potential for the overall economy, an appreciation of the potential environmental issues and impacts, an understanding of local, national, and international trends and market opportunities, public involvement, and careful planning for the future." Other reports dealing with energy trends, comparisons, and projections are planned.

Contact: Barry Rodgers, Director, Energy Economic Policy, (709) 729-3674; or fax (709) 729-2508.