What are the long-term prospects for the oil and gas industry in the province?
The geology offshore Newfoundland and Labrador has the potential to sustain petroleum activity for decades. However, the offshore environment is technically challenging, high-cost and high risk and there has not been a major discovery in more than 20 years. Worldwide, the industry looks for predictable, stable and competitive regulatory and royalty policies before investing the billions of dollars necessary to explore for and develop potential resources. The right policies encourage more exploration activity, development of oil and gas reserves and the investment needed to build a long-term industry.
