The following statement was issued today by Ed Byrne, Minister of Natural Resources. It was also read in the House of Assembly:

Success of offshore technology conference

I am pleased to rise in this House today to inform my colleagues of the success of Offshore Technology Conference (OTC) which was held last week in Houston. I led a delegation of close to 100 people from Newfoundland and Labrador who were there to promote the success of our current projects, the potential for new discoveries and our capability to support and service the oil and gas industry.

What initially struck me upon my arrival at the OTC was the sense of excitement that is being generated by this province�s petroleum industry. Frankly, there are many reasons for the optimism. The fact is the discovered resources off our province represent close to 80 per cent of the total discovered resources off the east coast of Canada. Furthermore, our production represents 81 per cent of the total production off the east coast of Canada. We are certainly leading the way in the offshore petroleum industry.

The success of our two producing projects is found in the Jeanne d�Arc Basin with the Hibernia and Terra Nova fields. By early 2006, our third major project - White Rose - will go into production and then this province will be producing close to half of Canada�s light crude oil.

And now, in addition to the highly prospective Jeanne d�Arc Basin, we will see more exploration in two additional areas. Significant commitments have been made for exploration in the Orphan Basin and seismic surveys are planned. Last week we announced the completion of successful negotiations to convert the former federal exploration permits to modern-day exploration licences in the Laurentian Sub-basin - ending a 30-year moratorium on exploration in this sub-basin. We also anticipate that seismic work will be undertaken this year and drilling could happen within 18-24 months.

The announcement by my federal colleague last week to put in place a five-year moratorium on duties imposed on mobile offshore drilling units is another positive step to encourage offshore drilling activity.

The OTC in Houston was an excellent venue for the delegation from this province to network with the major players in the oil and gas industry. These face-to-face meetings are among the best mechanisms we have to tout our oil and gas potential. I certainly commend the Newfoundland and Labrador delegates for the exemplary representation they provided during this conference.

Among the delegates from this province were representatives from the cities of St. John�s and Mount Pearl and the Town of Paradise. I joined Mayor Andy Wells at the World Energy Cities Partnerships reception and it is evident the City of St. John�s is becoming an important partner in the World Energy Cities organization. As the mayor indicated, the city views the World Energy Cities initiative as an important element of the city�s ongoing development strategy. Mayor Wells was complimentary of our pronounced presence in Houston. He indicated he also sees the renewed interest in exploration activity in our offshore and the possibility of new companies entering the exploration game.

I want to build on our partnership with our municipalities to see new development in this industry. Another critical partner for the department is the Newfoundland Ocean Industries Association.

I look forward to NOIA�s annual conference and the Offshore Petroleum Show which takes place early next month in St. John�s. This will provide us with another opportunity to promote our industry and the investment opportunities it presents.

We have momentum in our offshore oil and gas sector. We need to continue the excitement. We need to get the next development off the ground and we need the next discovery. This government is committed to working with industry to see how we can make that happen in the best interest of the people of Newfoundland and Labrador.

Furthermore, with the anticipation of further growth in this industry, it is clear we need to see a positive response on our proposal to the federal government to ensure this province receives more benefits from this industry under the Atlantic Accord. This is critical to government�s agenda to grow our revenues to support our social and economic agenda.

2004 05 10                                         1:50 p.m.