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Released: 31 October, 2003
Atlantic Energy Roundtable - St. John's
Notes for a Speech by
The Honourable Herb Dhaliwal, PC, MP
Minister of Natural Resources Canada
to the
Atlantic Energy Roundtable
St. John's, Newfoundland and Labrador
October 31, 2003
Check against delivery
Thank you Elizabeth Beale, roundtable members, ladies and gentlemen.
I am very pleased to have the opportunity to be with you today at the second Atlantic Energy Roundtable. I would like to congratulate Elizabeth Beale and the APEC team for organizing this event.
From this morning's discussions, it's clear that we have made much progress since last year. However, much remains to be done.
When I asked Ms. Beale if she would convene the Roundtable in Halifax last year, we were facing challenges and opportunities on several fronts. Operators had been telling us our regulatory processes needed to be more effective and efficient to remain competitive.
The supply and service community and other Atlantic Canadians were pointing out their concerns regarding the level of local participation in the industry. The Government of Canada understands those concerns and the importance of the offshore industry to the region, and to Canada. In fact, we want to have a world class industry and an industry that can compete anywhere in the world.
I would like to point out that the offshore oil and gas industry accounts for more than 3,3 00 direct jobs in Nova Scotia and Newfoundland and Labrador. And we want that to grow.
And we want to continue to attract investment. Canada's offshore play is significant.
Our resource potential off Canada's East Coast is vast, and yet largely untapped. At the same time, Canadian exploration continues. Some 350 exploration wells have been drilled, compared to more than 15,000 in the Gulf of Mexico and 2,400 in the North Sea. There are discussions about the offshore being held in many parts of our country.
For example, we are in discussions with our provincial counterparts in Quebec, New Brunswick and Prince Edward Island regarding opportunities in the Gulf of St. Lawrence. In northern Canada, the proposed Mackenzie Valley pipeline could open the huge potential of the Mackenzie Delta and Beaufort Sea. In my home province of British Columbia, a process is well underway to review the existing moratorium on offshore development.
The Government of Canada understands the need to ensure continued growth in the context of sustainable development. And that includes an industry that contributes to the economic well-being of the region.
One year ago in Halifax, we were presented with major challenges and opportunities. Those challenges were to encourage increased investment in order to generate more upstream activity. And to translate that into increased and sustainable economic growth for this region, and for Canada as a whole.
I'm pleased to see that the Roundtable process has helped our understanding of how we can do this. We've learned that this is a complex process that requires careful cooperation among government, industry and stakeholders.
Already, I can see from this morning's presentations that a great deal has been accomplished. Producers and drillers would like the issue of customs duties on the import of mobile offshore drilling units addressed. In fact, we have a process underway and stakeholders are being consulted.
Your consensus reports from the regulatory and industrial opportunities committees are important, and provide a path forward. This represents cooperation among the many offshore stakeholders: operators, supply and service companies, and both levels of government working on common issues.
These issues must be seen as part of a single challenge worthy of the full and equal commitment of everyone in this room. They include:
- that cost and risk reduction are not just an issue for operators;
- that growing local capacity and involvement of our local industry directly is essential; and
- that progress depends on effective and efficient regulation.
Reducing regulatory cycle times is a priority for the Government of Canada. It can and will be addressed through a concurrent review of environmental assessment and other regulatory processes. The goal is to bring Canada's regulatory cycle times at least in line with other jurisdictions for equivalent projects Â- without compromising the integrity of our values with respect to health, safety or the environment.
I have also heard your suggestions on performance-based regulations Â- regulations which must keep pace with technological change. The Government of Canada is committed to smart regulation. I expect, over the next year, we will make progress in further defining areas where we can regulate Â"smarter.Â"
This roundtable process has been identified as a government priority. It will be used as a pilot project for Canada's smart regulation initiative. Towards this end, we must all work together.
As you know, there are interested parties who need to be included if we are to broaden our focus on the regulatory environment. And for that, we will need the cooperation of all stakeholders. We also need to create an appropriate forum within the post-roundtable process to bring all perspectives to the table.
At the first Roundtable in Halifax, we agreed to invite labour to this second meeting in St. John's. I know their presence here today is the start of a productive partnership. As for the way ahead, I believe we do need to benefit from the experience in other jurisdictions that face similar challenges.
I met recently with my U.K. counterpart, Minister Timms. I was struck by the parallels between their PILOT process and the Roundtable process we have just begun. I was impressed that government, operators and suppliers held a single vision for the U.K. oil and gas sector.
This cooperation has led to an efficient regulatory system and the further development of local industry. While recognizing the material differences between the North Sea and our own East Coast, I believe we can continue to learn from their experience.
The Government of Canada is prepared to put the necessary resources behind developing such a cooperative model. Our aim is to build on the existing Roundtable, and create a dynamic and responsive industry government partnership.
For this to work, we in government will do our part to streamline regulation.
In turn, we hope to see industry ramp up exploration and development, and utilize our
highly capable local suppliers. The work accomplished to date and the consensus achieved was due in no small part to the dedication and commitment of a large group of people.
These people, in addition to their regular duties, gave freely of their time to generate sound ideas and practical solutions to the challenges and opportunities before us. Many of you are here today, and I want to thank you for your efforts.
No single outcome of the roundtable process will address the challenges facing the East Coast industry. However, your recommendations, taken together, will bring the industry much closer to realizing the vision adopted by the participants in this process. That vision is one of a growing offshore oil and gas industry maximizing its contribution to the economic well-being of the region.
With this approach, we will build support for what we are trying to create Â- an industry that's economically viable, internationally competitive, safe and environmentally sustainable. At the same time, we will be using our knowledge, innovation and technological leadership to promote the sustainable development of Canada's natural resources.
We will be working to ensure their economic importance and continued contribution to a strong society and communities.
Thank you.
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