Offshore Industry has Bright Future in Nova Scotia, Op-Ed

NOTE: The following is an op-ed piece by Premier Darrell Dexter

I have always said that great challenges bring great opportunities.

That's what the province is faced with right now in Nova Scotia's offshore oil and gas industry.

Last week I spoke to industry stakeholders at the annual CORE Conference in Halifax. I was frank about the situation facing our offshore. The industry is in a state of transition.

It's not a question of whether we'll have new exploration in Nova Scotia's offshore. It's a question of when.

We still have years of production left in the Sable project, and the new Encana development at Deep Panuke is on track to produce natural gas next year.

I'm confident that oil and gas will continue to play an important role in funding the kind of investments that will build prosperity over time.

Right now our oil and gas industry is facing significant challenges -- not challenges of their own making, but ones that have significant impacts on its validity.

World oil and gas markets have hit major lows, in particular the world price for natural gas. None of this is in our control, but the prices do influence corporate decisions by oil and gas companies around investing hundreds of millions of dollars in new exploration.

Nova Scotia has great geology, and we need to capitalize on that. So much of our offshore remains unexplored. What we know about these areas is limited, and that lack of good information is working against us.

That's why government is investing $15 million in doing the basic, foundational work to create a clearer, more comprehensive picture of our offshore geology. This Play Fairway Analysis is being done to industry standards, and is scheduled to wrap up in the spring.

The job will then be to package the information in a way that tells a persuasive story to potential investors, and gives them a head start on their own exploration efforts.

There are also great opportunities arising from our investments in renewable energy. We are a province rich in resources, blessed with high winds and high tides.

It is estimated that by 2015, Nova Scotia will have invested more than $1.5 billion in its Renewable Electricity Plan. Those investments will pay dividends over time with more stable electricity prices, energy security and increased self-sufficiency. And they will pay dividends even sooner in terms of increased economic opportunity and good jobs.

We are counting on stakeholders and other experts in government to act as ambassadors and share Nova Scotia's great story around the world. I challenge the offshore industry to find ways to make our unique combination of infrastructure, expertise and opportunity appeal to other markets, as the industry's current projects run their course.

You can be sure that as Premier, I will make it a priority to highlight and support the industry's efforts wherever I go.

Likewise, the government will continue to promote the skills, products and expertise in marine research, technology, service and supply of specialist Nova Scotia companies at trade shows such as OTC in Houston.

It's important that government continues to support our offshore industry to ensure its continued success. This is the industry's chance to reassess, adjust its course and charter a route to new and continued success.