Atlantic Canadas Offshore

Atlantic Canada has a thriving offshore oil and gas industry, with four oil projects, all based in Newfoundland and Labrador, and significant potential for industry growth.  This site focuses specifically on the offshore oil and gas industry in the region. For information on the Canadian oil and gas industry or onshore activity in Atlantic Canada, visit CAPP.ca

Projects and Exploration

When it comes to exploration and production, Atlantic Canada is an important player in Canada’s oil and natural gas industry. Offshore oil and natural gas resources are being developed safely and responsibly in Nova Scotia and in Newfoundland and Labrador.  With total expenditures of $63 billion since 1996, the industry today generates a significant portion of sales for more than 600 local supply and service companies and directly employs more than 5,500 people.  Atlantic Canada’s oil and natural gas industry has significant growth potential. Offshore exploration programs are active and there are six offshore projects in production including two natural gas projects in Nova Scotia and four oil projects in Newfoundland and Labrador.

Offshore Oil and Natural Gas Life Cycle

Oil and natural gas activity takes place in four unique stages: exploration, development, production and decommissioning. Below is an overview of how each stage works specifically related to the offshore oil and natural gas industry.

• Exploration is the process of locating oil and natural gas resources. Companies may begin their exploration process by reviewing existing geological and geophysical data to learn more about potential reservoirs. Once the data is compiled and analyzed, companies make an economic calculation which factors in things like geological risk, financial returns that might be earned, taxes and royalties etc., to determine whether a geological prospect is worth exploring.
• Conducting a marine seismic survey is typically the next step in exploring an offshore area as precise information is needed before investing in drilling an exploratory well given the high cost of drilling in the offshore. A marine seismic survey involves survey vessels using a compressed air gun to send a sound waves through the water at regular intervals along a predefined path. Seismic vessels tow streamers behind them containing hydrophones which record the reflected energy. Hydrophones may also be placed on the seabed in more shallow waters.
• If an analysis of seismic data shows a geological structure that could contain oil and natural gas resources, a company may decide to drill an exploration well. Exploration wells are drilled to confirm whether geological formations identified in seismic surveys contain oil or natural gas.  Before drilling can begin, companies must apply for the appropriate approvals from the relevant regulatory body in Atlantic Canada – the Canada-Newfoundland and Labrador Offshore Petroleum Board or Canada Nova Scotia Offshore Petroleum Board, which includes planning for environmental mitigation and safety planning.