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Offshore land results demonstrates decreasing momentum in oil industry November 17, 2006 |
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Kelvin Parsons, Opposition Natural Resources Critic and MHA for the District of Burgeo-Lapoile, says the results of this year=s offshore land sale signifies that the momentum in our offshore oil and gas industry has slowed considerably. This year=s results show the fourth consecutive year that exploration bids have dropped significantly. In 2003, offshore land bids totaled approximately $672 million. Over the past three years, that number has decreased steadily to this year=s total of approximately $32 million. Parsons believes the momentum slow down is directly related to the premier=s confrontational approach to negotiations and the shelving of the Hebron-Ben Nevis project. AWhile the minister is trying to spin this year=s land sale results as extremely positive, I view this as another sign that our industry=s momentum is declining,@ said Mr. Parsons. AOur exploration industry has witnessed less investment over the past four years and this does not bode well for our local service and supply sector, or the potential of finding new discoveries. AThe oil industry is telling us that the premier=s approach to Hebron-Ben Nevis has drastically hurt new investment in this province. This is obviously now being reflected in the declining level of new expenditures and interest being shown in our offshore industry. AIf the current trend continues, I fear that many more of our skilled workers will be forced to leave the province and many businesses will lose potential opportunities. This will do nothing to help encourage people to stay in Newfoundland and Labrador, and will almost certainly lead to greater line-ups at job fairs for employment outside the province. Unfortunately, it appears our provincial government is satisfied with the status quo and is content to sell our declining exploration sector as positive news.@
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