The Honourable Siobhan Coady, Minister of Natural Resources
Government of Newfoundland and Labrador
Speaking Notes for Arctic Technology Conference Session at Offshore Technology Conference, NRG Centre, Houston, Texas
Monday, May 2, 2016, 4:00 p.m.

Introduction

Good afternoon.

It is a pleasure to be here and to have the opportunity to talk about the upcoming Arctic Technology Conference which we’ll be hosting in Newfoundland and Labrador this fall.

I would like to take a moment to extend a special thank you to Sara Wilshaw, the Consul General here in Texas, and to the organizers of the session.

Since being here at the conference, I have enjoyed meeting colleagues and others in the oil and gas industry in North America and throughout the world.

Earlier today, I was also pleased to meet with some of the individuals who are actively working to build upon Newfoundland and Labrador’s successes in the oil industry.

The oil and gas industry represents a vital element for the residents and the economy of the province – we take our potential in the oil and gas sectors very seriously.

Our people are known for their hard-working attitude, as well their knowledge and experience in exploration, development and in production.

For any who aren’t familiar with the province, Newfoundland and Labrador is uniquely located on the far east coast of the continent.

So many comment on the natural beauty of the province, the rugged coastlines, the power of the ocean that hedges our shores, the musical and artistic talents of our people, and the warmth and congeniality with which we conduct ourselves.

But there are many others, such as those here today, who turn their attention to Newfoundland and Labrador’s massive potential for offshore development.

To the south of the island, to the north and the east of the island, and on the long coast of Labrador, we are actively positioning our province for the extensive future development of the oil and gas stores that are so plentiful in our subsea region.

Preview of ATC

The Offshore Technology Conference was founded in 1969, and, as you know, is the world’s foremost event for the development of offshore resources in the fields of drilling, exploration, production and environmental protection.

The Arctic Technology Conference is built upon OTC’s successful multidisciplinary approach with 14 technical societies and organizations who are working together to deliver the world’s most comprehensive arctic event.

The Arctic Technology Conference provides an opportunity to demonstrate the fundamental role that most of North America’s major players in offshore technology will play in future arctic and sub-arctic activity.

Our capital city, St. John’s, is pleased to have been chosen to host the Arctic Technology Conference this fall.

We are hard at work on plans to provide delegates with a unique experience. We are also anticipating the chance to showcase the opportunities that Newfoundland and Labrador has to offer – not just the prospectivity, future development and production of oil and gas – but also the expertise, knowledge and experience that we have to offer from our marine heritage.

The Arctic Technology Conference in St. John’s is being endorsed by the International Association of Drilling Contractors as well as the Petroleum Equipment & Services Association; and the sponsoring organizations are:

• American Association of Petroleum Geologists
• American Institute of Chemical Engineers
• American Institute of Mining, Metallurgical, and Petroleum Engineers
• American Society of Civil Engineers
• American Society of Mechanical Engineers
• Institute of Electrical and Electronics Engineers — Oceanic Engineering Society
• Marine Technology Society
• Society of Exploration Geophysicists
• Society for Mining, Metallurgy, and Exploration
• Society of Naval Architects and Marine Engineers
• Society of Petroleum Engineers
• The Minerals, Metals & Materials Society

Newfoundland and Labrador is technically referred to as being “sub-arctic”. Our province has persevered for centuries despite the challenges that this environment can present.

For generations, our experts have been addressing challenges in our arctic-like conditions with innovative solutions that are based on centuries of experience.

We have learned from our history. This knowledge, coupled with our established expertise and strategic location, truly makes Newfoundland and Labrador the path to the arctic.

The conference will provide attendees with an opportunity to meet with partners and stakeholders throughout the north – and throughout the world – to facilitate strategic partnerships and promote collaboration.

Oil and Gas in Newfoundland and Labrador

While the price of oil is currently low, the value of this commodities stands; and the plentiful stores that lie in subsea Newfoundland and Labrador will continue to generate returns on investment into the future.

The long-term view for oil and gas exploration and development in Newfoundland and Labrador remains strong, despite short-term fluctuations in oil prices.

After decades exploring for oil in Newfoundland and Labrador, we have gained knowledge and understanding of the industry, what we have to offer and where we are headed.

Newfoundland and Labrador has had much success with our three large producing projects – Hibernia, Terra Nova, and White Rose – which have produced over 1.5 billion barrels of oil.

Next on the horizon is the Hebron project, which is expected to produce 700 million barrels of oil.

A couple of years ago, a significant discovery of oil was made in the Flemish Pass – location is termed Bay du Nord. It is estimated to contain 300-600 million barrels of oil.

We’ve also attracted global attention with extensive geoscience that includes seismic acquisition. This has provided us with quality data regarding our offshore prospects.

A large portion of the new seismic survey has been acquired over our slope and deepwater frontiers, marking the first time many of these regions of our offshore have been imaged.

Newfoundland and Labrador's slope and deepwater areas represent one of the world's last great frontiers.

Through this extensive surveying, we have found significant new basin areas; and to date, we have defined over 350 new leads and prospects in our offshore.

Our scientifically-driven strategy is reducing the exploration uncertainty from chance factors of 1 in 20, to now having globally competitive chance factors of 1 in 10 or lower.

In terms of calls for bids, the previous call in our province resulted in a total value of $1.2 billion in work commitments for seven of the 11 parcels offshore – which we understand may have been one of the largest work commitment bids in the world in 2015.

I’m pleased to say that the 2016 Calls for Bids were issued in early April in the Canada-Newfoundland and Labrador Offshore Area, and they offer abundant prospectivity to prospective bidders.

Conclusion

Jim Keating, Nalcor Oil and Gas, will speak to some of the more technical aspects of the oil and gas industry in our province.

Afterwards, Andrew Noseworthy will moderate a panel of speakers including Murray Brown with C-CORE, Bill Fanning of Kvaerner Canada, and Ron Collier with SubC Imaging.

Newfoundland and Labradors is a leader in subsea development – particularly in the sub-arctic environment, which presents specific challenges. With our unique location, we have built a solid foundation, have incredible prospects, and look forward to the many opportunities for exploration and development on the horizon.

I hope you will all join us this fall in St. John’s for the annual Arctic Technology Conference. I look forward to speaking with you and answering any questions you have about Newfoundland and Labrador.

Thank you for the opportunity to be here today.