"Higher mortgage rates expected in the mid to later part of the year may increase demand throughout the St. John's Real Estate market in the first half of 2010. It could however, weaken demand in the second half. Pending an unforeseen increase in listing inventory, further price increases are anticipated."

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Newfoundland and Labrador's Oil and Gas - Contributing to a strong provincial economy

Newfoundland and Labrador's Oil and Gas - Contributing to a strong provincial economy. 

There are currently three producing offshore oil projects: Hibernia, Terra Nova, andWhite Rose. These projects operate in one of the world?s harshest environments. Local companies work with operators to research and develop innovative ways to overcome the challenges presented by ice, wind and waves. Hundreds of companies are involved in both onshore and offshore activities to service the industry and many more are involved in exploration and related activities.

How much oil and gas does Newfoundland and Labrador produce?

Newfoundland and Labrador produces more than 300,000 barrels of crude oil per day (b/d) representing about 12 percent of Canada's total crude oil production.  There are three offshore oil projects in the province: Hibernia, Terra Nova and White Rose. The approved roduction facility capacity for Hibernia is 220,000 b/d, Terra Nova 180,00b/d and White Rose 100,000 b/d.

How do people in Newfoundland and Labrador benefit from offshore oil and natural gas production?

Oil and gas production creates jobs, opportunities for local businesses and spending on research and development and infrastructure. The people of the province also benefit from the royalties and taxes the industry pays to government; these revenues support social and other programs throughout the province. In addition, oil and gas activity leads to spin-off benefits for the retail and construction industries.

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.

 

Hibernia 

The completed platform was towed to the Hibernia oil field and positioned on the ocean floor in June of 1997 and began producing oil on November 17, 1997. The platform stands 224 metres high, which is half the height of New York's Empire State Building (449 metres) and 33 metres taller than the Calgary Tower (191 metres).
Platform location: 46 degrees 45' 1.5722" north, 48 degrees, 46'58.5427" west.

The Hibernia offshore oil field is owned jointly by ExxonMobil Canada (33.125%), Chevron Canada Resources (26.875%), Petro-Canada (20%), Canada Hibernia Holding Corporation (8.5%), Murphy Oil (6.5%) and StatoilHydro Canada Ltd (5%).

The Hibernia platform has three separate components:

- Topsides
- Gravity Base Structure (GBS)
- Offshore Loading System (OLS)

The Topsides facilities accommodate all drilling, producing and utility equipment on the Hibernia platform, and provide living quarters for the steady-state crew of approximately 185 people. The Topsides facilities have a design capacity of approximately 230,000 barrels of crude oil production per day. In 2003, the C-NOPB gave Hibernia permission to increase its annual production rate to 220,00 KBD.

Terra Nova 


The Terra Nova Field has 440 million barrels of recoverable oil including 40 million barrels which will come from the Far East Development, approved in late 2005, and is expected to be on-stream in the first quarter of 2006. Plans are in place to achieve first quartile performance at the Terra Nova Field through an extended turnaround in 2006.

Petro-Canada is the operator and 34% interest holder in the Terra Nova oil field development 350 kilometres off the coast of Newfoundland and Labrador. Discovered in 1984 by Petro-Canada, the field is the second largest off Canada?s East Coast. Terra Nova is the first harsh environment development in North America to use a Floating Production Storage and Offloading (FPSO) vessel. Production from the field began in January 2002. The Terra Nova project makes a significant contribution to the economy of Newfoundland and Labrador.

  • Over the life of the field, about $2 billion will be invested in the province. As of December 2005, in excess of 85% of the long term Terra Nova development personnel were residents of Newfoundland and Labrador at point of hire.
  • The Terra Nova development currently employs 600 people working both onshore in operations support and offshore on the Terra Nova FPSO, the Henry Goodrich Mobile Offshore Drilling Unit and supply vessels that provide standby services to the development.
  • In 2005, Terra Nova expenditures were approximately $123 million.
  • Petro-Canada currently invests over half a million dollars each year into local non-profit organizations in the community.

White Rose

 The White Rose field offshore Canada's East Coast is a core asset for Husky . First oil from the project was achieved on-budget and ahead of schedule on November 12, 2005.
Husky is the operator of and has a 72.5 percent working interest in the White Rose development on the eastern margin of the Jeanne d'Arc Basin, approximately 350 kilometres east of St. John's. The field is comprised of the North, West and South Avalon pools. Initial development will focus on the South Avalon Pool. White Rose is being developed with a floating production, storage and offloading (FPSO) vessel.
 
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Stephen and Fraser Winters, Remax Realtors
Direct: (709) 682-9045 or (709) 682-9245
Fax: (709) 726-8316
Email:info@fatherandsonteam.ca

Remax Realty Specialists
40 Aberdeen Ave
St. John's, Newfoundland
A1A 5T3
www.FatherAndSonTeam.ca