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The Canadian province of Newfoundland and Labrador holds as many as 25.5 billion barrels of oil and 20.6 trillion cubic feet of gas, according to the results of new tests conducted on the coastal areas of the province.
The provincial government of Newfoundland and Labrador, in partnership with its corporate partners, announced the results of the 3D survey of the underexplored slope and deep water areas of the region’s shores on Wednesday.
The West Orphan basin will be divided into blocks in the near future, opening the areas up to private exploration and production.
“The 2016 independent oil and gas resource assessment adds to our growing knowledge about our offshore oil and gas potential—leading to more exploration work by global companies and giving us assurance that we will have a thriving oil and gas industry in Newfoundland and Labrador for many years to come,” said Dwight Ball, the premier of Newfoundland and Labrador. “We do recognize that exploration is down globally due to current challenges in the oil and gas industry. Still, we are cautiously optimistic about positive results of the licensing round in November 2016.”
World Oil reported that this was the first time a 3D survey was conducted in Canada ahead of a scheduled licensing round.
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“The 3D seismic survey added an additional layer of insight which has played an essential role in helping us risk reduce key prospects from a 1 in 20 to a globally competitive 1 in 6 chance of success,” Jim Keating, an executive vice president at Nalcor Energy, one of the firm’s that contributed to the testing efforts, said.
In Alberta, many oil and gas businesses are closing due to the ongoing bear market for energy.
Nearly 19,000 businesses are expected to close in Calgary between 2014 and the end of this year, including nearly 7000 in 2016 alone. Vacancy rates of commercial office space in the provincial capital hit the highest level in thirty-three years at 22.2 percent in the second quarter of this year. This represents an annual jump in vacancy of nearly ten percent.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…