Newfoundland and Labrador is a eastern the majority of province of Canada. The vast majority of province’s populace can be found on the island of st. kitts of Newfoundland dog, as most in the province’s method to obtain economy. While the island is found next to the Atlantic marine, fisheries and fish products have been of the main exports pertaining to the region, yet in the last 30-40 years or so, olive oil has significantly become an export that contributes to an expanding provincial economic system.
Search in Newfoundland dog waters 1st began almost 50 years ago although, there is no hurry in finding olive oil in Newfoundland dog because during the time, it was a lot less expensive to get oil corporations to drill elsewhere on the globe. Things improved in 1973 when essential oil prices improved dramatically and the interest in the possibility of finding essential oil in Newfoundland also improved. Before any kind of oil was found, nevertheless exploration was ongoing, the provincial govt of Newfoundland dog set up several regulations about how oil methods were to be created in the event of finding, to ensure the maximization of local benefits.
More than three decades ago, the Hibernia oil discipline was learned, proving that Newfoundland and Labrador got economic potential in the petrol industry (Fusco, n. m. ). This kind of discovery meant that the regulations that the provincial government produced would have to always be implemented. The Hibernia olive oil field discovery ignited a series of disagreements between federal government of Canada as well as the provincial government of Newfoundland.
The federal government had their own desired goals for advancement and thought that Newfoundland dog should not have the administrative or perhaps decision making specialists for just offshore mineral solutions, stating that “oil was too crucial of a commodity to have beneath provincial control (Crosbie, 2003). This challenge resulted in many years of legal fights over legislation of overseas projects. In 1985 the Atlantic Agreement was authorized, this contract initiated a joint management system for the province’s just offshore resources.
The accord included as well the creation of the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB), a table of half a dozen members responsible for managing overseas resources for both the government and regional levels of govt (Fusco, n. d., Fraser, 2009) (See Appendix A for more information within the CNLOPB). Hibernia finally started its olive oil production in 1997 and then three even more oil field productions, Terra Nova in 2002, White colored
Rose in 2005 and Hebron, which is expected to commence production in 2017 (See Appendix W for a map of the locations of petrol fields off the coast of Newfoundland). This case study pertains to Lesson 9 of the training course, which discusses Energy resources that could be found in Canada. Challenges and Options Nearly twenty years passed after the Hibernia oil field was discovered before any official production was made. This displays the degree of difficulty the province of Newfoundland dog experienced just to begin to have oil as one of all their main exports.
The polices that Newfoundland dog and Labrador retriever had integrated after the breakthrough of Hibernia clearly conflicted with the plans of the federal government, which were to enhance profits that will benefit the federal government of Canada as opposed to the people of Newfoundland. The government of Canada wanted to gain an equity risk in the job with increased royalties during times of large oil prices. Newfoundland’s polices also limited benefits to get the oil companies that could be drilling in Hibernia stating that the region was asking for too much and that the companies wished a fair share of the benefits.
Another significant obstacle and devastating event surrounding Hibernia, was the tragedy of the Water Ranger going unit, which will not only sank completely, undoing all the work that had been done nevertheless also triggered the death of all 84 crew users (Collier, 2010). Investigations later on revealed that there have been construction faults and that the crew lacked appropriate training and equipment in case of an emergency. Following this disaster, it absolutely was decided that Hibernia would be a Gravity Basic Structure (GBS), which is a great oil platform that is saved in place simply by gravity.
A lot more challenges were faced with this decision because a lot of the engineers that worked on the GBS experienced little encounter in this type of structure. In addition , due to the complicated nature with this project, most of the workforce came from other countries who had even more experience which usually ultimately resulted in less careers for locals (Fusco, and. d. ). In regards to the environment, oil creation in Newfoundland waters, although it may act as economic precious metal, also delivers the possibility of environmental destruction for the marine.
Since the fishing industry and seafood products are a few of Newfoundland’s main exports, the fear that pursuit and drilling in crucial areas of the fishing industry may get in the way or damage the overall sea ecosystem is an important challenge. Furthermore, oil splatters continue to be one of many oil industry’s largest environmental hazards. Not only would the marine environment be affected but virtually any life adjacent the marine would be forever damaged (Higgins, 2011). Inspite of the overwhelming issues, the overall possibilities that offshore oil creation would provide the province of Newfoundland and Labrador retriever would be well worth all of the difficulties.
This endeavor would function as a boost in the province’s general economy which has been particularly helpful during the 1990s after the cod fishing industry took a dive pertaining to the worst (n. a., 1998 Fisheries). Not only could the economy always be benefitting but the local people might also have new opportunities to get employment. All the challenges that the government of Newfoundland confronted in the expansion stages with this venture ultimately gave the federal government the experience this needed in order to maintain, control, and deal with all foreseeable future oil field developments.
This could be seen in the quick and effective development of the Terra Nova and White Increased oil areas. There are different issues surrounding the Hebron field, for instance , the type of essential oil that is found in that area is particularly hard to extract. These issues are part of the reason as to the reasons oil production at Hebron is timetabled to only come from 2017 (Fusco, n. deb. ). Case Lesson Interconnection In Lesson 9 in the course, it really is discussed that crude oil and petroleum plays a part in about 23. 3% in the country’s strength resources (Mulrennan, Lesson 9, slide 7).
Although Alberta has regarding 39% of Canada’s staying conventional olive oil reserves, Newfoundland dog and Labrador offshore improvements come second with 28%, not including the oil sands in Alberta, which in that case might account for more than 95% of oil canada (National Energy Board, 2007). The case research which was examined in Lessons 9 viewed implicitly at oil sands in Alberta, in particular, how the extraction on this type of essential oil is devastating for the environment. Development in Newfoundland is likewise not green, since drilling in the water results in the destruction of certain marine habitats.
The threat of possible oil spillage that also is still an issue. Yet , both Alberta and Newfoundland dog and Labrador retriever have been trying to tighten polices surrounding the environmental hazards in oil sands and offshore oil creation respectively. The Alberta govt has demonstrated through the implementation of restrictions and outlined plans intended for measures in protecting environmental surroundings, as well as the CNLOPB in Newfoundland who have also instilled regulations in regards to environment protection.
The advantage of having a joint management system, including the CNLOPB is usually that the federal government is as involved in all issues encircling offshore oil, including the environment (Fraser, 2009). Similarly, as per the reading intended for Lesson 9, the responsibility of the federal government in pollution control and environmental protection is important in obtaining results on the national level. References 1 ) Canada-Newfoundland and Labrador Just offshore Petroleum Panel. http://www. cnlopb. nl. ca/ 2 . Collier, K. (2010). The loss of the Ocean Ranger, 15 Feb . 1982.
Newfoundland and Labrador Heritage Website. http://www. heritage. nf. ca/society/ocean_ranger. html 3. Environmental Defence (2010). Duty calls: Federal responsibility in Canada’s essential oil sands. Pembina Institute and Equiterre. http://www. econcordia. com/courses/environmental_issues/lesson9/PDF/ed-fedpolicy-report-oct2010-web-redo. pdf four. Crosbie, L. C. (2003). Overview newspaper on the 1985 Canada-Newfoundland Atlantic Accord. Noble Commission upon Renewing and Strengthening the Position in Canada. 206. Retrieved from http://www. exec. gov. l. ca/royalcomm/research/pdf/Crosbie. pdf your five. Fusco, T. (n. m. ). Offshore oil: an understanding of development in Newfoundland and Labrador. Memorial College or university of Newfoundland. Retrieved by http://www. ucs. mun. ca/~oilpower/documents/NL%20oil%207-25-1. pdf six. Fraser, G. S. (2009). The Canada-Newfoundland Atlantic Accord implementation act: transparency with the environmental managing of just offshore oil and gas industry. Marine Policy. 33(2), 312-316. http://0-dx. doi. org. mercury. concordia. ca/10. 1016/j. marpol. 2008. 07. 012 7.
Higgins, M. (2011). Essential oil and the environment. Newfoundland and Labrador Historical past Web site. http://www. heritage. nf. ca/society/oil_environment. html 8. House, J. M. (2003). Misguided beliefs and facts about petroleum-related development: Lessons for British-Columbia from Atlantic Canada plus the North Marine. Journal of Canadian Research. 37(4), 9-34. http://0-search. proquest. com. mercury. concordia. ca/docview/203556887? accountid=10246 on the lookout for. National Strength Board. (2007). Canadian Strength Review 2007 ” Energy Market Assessment. http://www. neb. gc. a/clf-nsi/rnrgynfmtn/nrgyrprt/nrgyvrvw/cndnnrgyvrvw2007/cndnnrgyvrvw2007-eng. html#s4_4 15. n. a. (1998) The fishing industry. Newfoundland and Labrador Traditions Website. http://www. heritage. nf. ca/society/fishery. code 11. Mulrennan, M. Elizabeth. (2013). Canadian Environmental Issues (GEOG 203) Lesson 9. Concordia University. Appendix A CNLOPB Firm Chart , http://www. cnlopb. nl. ca/pdfs/orgchart. pdf Appendix B Location of Newfoundland dog oil domains , http://www. cbc. ca/news/canada/newfoundland-labrador/story/2012/05/31/nl-hebron-development-approval-531. html
