Natural Resources
June 18, 2008
Minister Provides Details on Energy Plan
Budget Initiatives
The Provincial Government is spending $13
million this year as part of a three-year, $35-million commitment to
implement key initiatives outlined in the Energy Plan. The focus this
year is on gaining a better understanding of the province�s petroleum
resources through new geoscience to attract new investment and
exploration.
�These investments in the energy sector are bringing the Provincial
Government closer to its Energy Plan vision for energy resource
development in the province,� said the Honourable Kathy Dunderdale,
Minister of Natural Resources. �After the careful research and planning
we put into the plan, we are now taking major steps towards its
implementation and realizing our long-term vision for our vast wealth of
energy resources.�
Minister Dunderdale detailed this year�s oil and gas-related Energy Plan
initiatives during her address to the Newfoundland and Labrador Oil and
Gas Industries Association (NOIA) Wednesday. The Energy Plan: Focusing
Our Energy was released in September 2007.
Budget 2008 provides approximately $7 million for acquiring new
geoscience, reprocessing existing data with modern analytical tools and
other geoscience-related programs and activities to provide investors
with a better picture of the province�s potential petroleum resources.
�This investment will help the province attract new exploration activity
by identifying prospective areas for exploration, and exploration is a
critical step towards realizing new discoveries,� said Minister
Dunderdale. �We are also concentrating on onshore geoscience with aerial
surveys covering approximately 7,000 square kilometres on the west
coast. We will use the results to guide us in planning and making
decisions to advance our knowledge.�
The aerial surveys are part of the $5-million Petroleum Exploration
Enhancement Program, which was announced last year with multi-year
funding. The results of the surveys will be beneficial in advancing the
province�s geoscience knowledge of both the mineral and oil and gas
sectors. In the offshore, an analysis of gaps in geophysical information
completed by the Canada-Newfoundland and Labrador Offshore Petroleum
Board (CNLOPB) is currently being reviewed to identify opportunities to
reprocess existing data or acquire new data.
To further promote targeted exploration activity, the department is
currently consulting with industry on the development of regulatory and
fiscal measures that will be attractive to investment. To do this, the
province has established two working groups that reflect the diversity
of the province�s oil and gas industry � one for the east coast offshore
region and another for western Newfoundland.
�Our budget initiatives this year focus on gaining a greater
understanding of our resources and marketing this information to
industry to attract exploration and investment to our region,� Minister
Dunderdale said. �It is also crucial at this stage to ensure we
establish an environment that is conducive and attractive to investment
and that we have the programs in place to assist industry in making
their own strategic decisions when it comes to their exploration
programs.�
To provide greater clarity to companies interested in operating in
Newfoundland and Labrador, Budget 2008 also provides $500,000 to work
towards the development of natural gas royalty regulations and a new
offshore oil regime based on the principles and structure of the natural
gas regime. The draft natural gas regime is contained in the Energy
Plan. These initiatives will also help ensure a fair share of resource
development revenue is returned to the province.
The Energy Plan: Focusing Our Energy is available online at
//www.nr.gov.nl.ca/energyplan/EnergyReport.pdf
- 30 -
Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca
BACKGROUNDER
Energy Plan Budget Highlights
Approximately $7 million for acquiring
new geoscience, reprocessing existing data with modern analytical tools
and other geoscience-related programs and activities.
- $2.55 million for new energy
efficiency and conservation initiatives as identified in the Energy
Efficiency and Conservation Plan, to be developed and implemented in
2008. These include:
- $180,000 to expand last year�s
successful Holiday Light Switch program.
- 320,000 for new efficiency and
conservation programs to specifically engage the province�s
young people.
- $1.25 million for a major projects
capacity study to assess scheduling, timing, employment and
infrastructure requirements for the upcoming potential large-scale
projects, including Hebron, Hibernia South, White Rose Extension,
the Voisey�s Bay commercial processing plant, a possible second
refinery, proposed LNG transshipment facility and the Lower
Churchill Project.
- $500,000 to work towards the
development of natural gas royalty regulations and a new offshore
oil regime based on the principals and structure of the natural gas
regime.
- $450,000 in new initiatives to
maximize opportunities for the supply and service sector, including
development of a comprehensive information system for the province�s
supply and service capability and development of a promotional plan
for the sector.
- $300,000 for the electricity
industry for new initiatives focusing on industry structure,
regulatory process and rate setting.
- $250,000 for a detailed assessment
of non-diesel electricity supply options for coastal Labrador
communities.
- $250,000 for the development of an
Energy Innovation Roadmap to guide the development of the province�s
energy innovation strategy.
- An additional $550,000 will support
various initiatives related to petroleum resource marketing,
value-added secondary processing, water and wind policy, and onshore
regulatory structure.
2008 06 18
9:30 a.m.
|