Encana’s Deep Panuke project drills for natural gas off the coast of Nova Scotia in this file photo. The company permanently ceased production at Deep Panuke in 2018. (SBM Offshore – image credit)
Premier Tim Houston says industry interest in Nova Scotia’s offshore petroleum reserves is “exponentially higher” than it’s been in the past, raising his hopes for the province’s open call for bids for new exploration.
He told reporters Thursday his optimism comes from a combination of changes to the global energy landscape and his government’s work to drum up industry interest.
“The reason I have spent very few nights in my own bed over almost the last year is because I am completely committed to making sure that the bid process that we have now and in the future has every opportunity to succeed,” he said.
Houston, who recently took on the role of energy minister, has been travelling this fall to meet with energy executives. He’s made stops in petroleum hubs Calgary and Dallas, and one in London, UK for an energy conference.
He said the “vast majority” of oil majors he’s talked to — that is, the companies that are global leaders in petroleum production — have been intrigued enough by his pitch to follow up by accessing the government’s data on Nova Scotia’s offshore reserves.
“The interest is absolutely changed,” Houston said.
“What I’ve been told — the interest is exponentially higher, a thousand times higher than it was before.”
Premier Tim Houston says he is ‘completely committed’ to a revival of the offshore gas industry. (CBC)
Nova Scotia’s offshore energy regulator opened a new call for bids in July for 13 parcels totalling more than 3.3 million hectares on the Scotian Shelf. The province says the Scotian Shelf has a reserve of at least 3.2 trillion cubic feet of natural gas.
The call for bids is open until April 28, 2026.
A comparable call closed earlier this month in Newfoundland and Labrador and received zero bids. Houston said he knows very little about Newfoundland and Labrador’s resource or its bid process and he isn’t focused on its results.
Offshore natural gas production petered off in Nova Scotia in 2018. Since then, the regulator has twice issued calls for exploration licences and received no bids.
Houston said that’s partly “because of terrible policy from previous administrations.” He didn’t elaborate.
He said local production of natural gas would help bring down power rates because it would be cheaper to buy it from Nova Scotia’s own offshore than to import it.
Opposition members were unconvinced by Houston’s rationale.
“I haven’t seen anything other than the premier’s bravado that suggests that the situation offshore has changed,” said NDP Leader Claudia Chender.
Chender said Houston’s time as energy minister would be better spent focused on Nova Scotia Power than travelling internationally to push offshore gas — alluding to the utility’s proposed rate hike and its recent cybersecurity breach.
Houston said Thursday he was still committed to an election promise to cap power rate increases to the national average, and that his government is looking for ways to fine Nova Scotia Power for its handling of the breach.
Interim Liberal Leader Derek Mombourquette — who was energy minister under the Liberal government of Stephen McNeil — disputed Houston’s assertion that past governments have stymied offshore petroleum development.
Ultimately, whether petroleum exploration or drilling goes ahead is an industry decision, he said.
Mombourquette had no faith that reviving the offshore gas industry would help bring down the cost of electricity.
“When I heard the premier today say that all of our hopes and dreams are going to be accomplished by an industry that doesn’t exist right now in our offshore, [it] is misleading, it’s inaccurate and it’s ridiculous,” he said.
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