History of the Offshore Industry Maritimes Energy Association Oil and Gas 101 February 19, 2013
Overview● Who is CAPP● Lifecycle of an oil and gas field● Atlantic Accord – History● History of the NS offshore oil and gas industry● Atlantic Canada Offshore industry today
Who is CAPP● We are the voice of Canada’s Upstream Oil and Gas Industry • To enhance the well being and sustainability of the upstream Canadian oil and gas industry in a socially, environmentally and technically responsible and safe manner● CAPP members produce more than 90 per cent of Canada’s natural gas and crude oil Producer member companies explore for, develop and produce natural gas, natural gas liquids, crude oil, synthetic crude oil, bitumen and elemental sulphur throughout Canada Associate members provide a wide range of services that support the upstream crude oil and natural gas industry● Offices in St. John’s, Ottawa and Calgary
Lifecycle of an oil and gas fieldExploration Development Production Decommissioning/ AbandonmentSeismic Drilling wells Recovering the Completion of resource projectExploration Engineering drilling Transportation to Removal of Fabrication/ market installationDelineation construction drilling Environment, Health and Safety
Canada Offshore History● Canada’s first offshore well was drilled in the 1940s off PEI● Exploration really began in earnest in the 1960s● Seismic surveys began off the BC West Coast in 1958● First offshore well in the Beaufort Sea drilled in 1972● Major successes came in NS/NL the 1970s and 1980s thanks to advancements in exploration technology, knowledge and federal fiscal incentives
Atlantic Accord - History● In early 1980s Canada Oil and Gas Lands Administration was regulatory agency for all frontier lands● Federal and NS/NL Provincial Governments both claimed ownership of offshore jurisdictions Supreme Court of Canada confirmed federal ownership● 1982: Canada – Nova Scotia Agreement on Offshore Oil and Gas Resource Management and Revenue Sharing● NL and NS Accords in 1985/86 set aside resource ownership and jurisdiction issues● Mirror legislation passed in 1987/88; Accord Acts passed in 1990
Nova Scotia - Offshore History (exploration)● Exploration Cycle 1: First well in Sable Island region was drilled in 1967; Between 1967-1978 a total of 71 wells drilled● Exploration Cycle 2: In 1979 the Venture natural gas discovery marked the beginning of a new era in exploration; discoveries delineated and drilling moved to deeper reservoirs 54 wells drilled; 15 significant discoveries confirmed● Exploration Cycle 3 Announcement of development of the Cohasset Panuke project sparked drilling on the shallow Scotian Shelf Drilling also occurred on the deepwater Scotian Slope
Nova Scotia – Offshore History (cont’d)● Production from the Cohasset-Panuke oil project in 1992 Major milestone for both NS and Atlantic Canadian offshore● First natural gas production from the Sable Offshore Energy Project in 1999● Deep Panuke gas discovery announced in 2000 Sable Offshore Energy Project (credit: Prisma Productions)
Georges Bank Offshore● Canada and the U.S. share jurisdiction over Georges Bank● Area known for a number of commercial species of fish● Contains the potential for large hydrocarbon reserves From 1976-1982 ten exploratory wells drilled on the U.S. portion● Currently a moratorium in place on oil & gas exploration● The Government in Canada and the NS provincial government have a joint agreement to extend the moratorium until 2015
Newfoundland and Labrador – Offshore History● First drilling on the Grand Banks (offshore NL) – 1966● Only one discovery in the first 40 wells drilled● From 1973 – 1983 exploration off Labrador found substantial natural gas reserves but no commercial crude oil resources● First production in NL was from the Hibernia project in 1997 Hibernia Gravity Based Structure
Atlantic Canada’s Offshore - Today● Nova Scotia Gas production at Sable Deep Panuke Project under development Renewed interest in exploration offshore NS● Newfoundland and Labrador Oil production from 3 projects: • Hibernia • Terra Nova • White Rose Fourth major project under Deep Panuke Project under development (credit: SBM development Offshore) Significant exploration activity planned
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.