Oil and Gas Exploration

The province’s oil and gas industry has experienced tremendous growth over the past decade.  The industry now accounts for approximately 35% of the province’s nominal GDP and close to 2% of total provincial employment.  In 2007, oil production in the province totalled 134.5 million barrels.  In 2007, the price of Brent crude oil has continued to rise to historic levels from US$65.16 (US dollars) per barrel in 2006 to currently closing in on $120 (US dollars) per barrel.

The future of the province’s oil and gas industry depends upon continued exploration and new commercial discoveries. 

Western Newfoundland oil exploration has a long history dating back to 1867.  Between 1867 and 1973 there has been approximately 60 onshore drill holes produced.  These holes concentrated around known oil seeps, which were mostly shallow, and were drilled without seismic. 

The Greater Corner Brook Board of Trade has taken an active role over the past several years in creating awareness and supporting onshore and offshore oil and gas exploration and development in Western Newfoundland. Three International Symposiums on the oil and gas resources of Western Newfoundland and an Investors Forum were successfully organized by the Board of Trade.  The Greater Corner Brook Board of Trade contracted CBCL Limited in Corner Brook with the task of studying the region’s infrastructure, supply and services, employment base and business opportunities. 

The Western Newfoundland region holds tremendous potential for both onshore and offshore oil and gas development, which could lead to a larger vibrant energy industry in the region. There are 12 companies (such as Deer Lake Oil & Gas, Ptarmigan Resources, Vulcan Resources) that are active in the area increasing their respective knowledge about the area’s potential, and a number of wells are expected to be drilled later this year. 

Another company active on the west coast is NWest Energy Inc.  NWest has acquired the exploration rights to, and completed initial interpretative analysis of, four (4) exploration licenses in the Western Newfoundland offshore sector.

Oil and gas exploration has made significant progress over the past number of years.  However, there is still a long way to go with much more research and testing to be completed.  There is a commitment from local businesses and organizations to support the oil and gas industry players as they endeavour to find that main well of oil in our area.  When that day comes, the communities, businesses and key players will be ready to meet this exciting challenge head on.