The $13 Million Message

By Roger Bill

In a provincial budget with spending estimated at $9.8 billion, a $13 million expenditure is loose change. The fact that this $13 million expenditure is earmarked for seismic surveying and is intended to encourage new oil exploration, however, magnifies it. At the same time as governments at all levels are promoting clean energy on the consumption side, the Newfoundland and Labrador government is making new investments in carbon-intensive energy on the production side.

Reaching Net-Zero Targets

If the provincial government is committed to net-zero carbon targets by 2030 and 2050, then why is it investing in the search for new oil deposits? Finance Minister Siobhan Coady says the reason is simple. “The world needs oil. We have oil.” When answering that question the Minister also remembers to say “transition” and “low carbon oil” (one MUN geographer describes the latter claim as “nonsense”). Ask Charlene Johnson, the CEO of the province’s oil industry association, the same question and she’ll also say, “transition” and “clean carbon oil” (a reminder: one MUN geographer describes the latter claim as “nonsense.”)

On YouTube you can also watch Premier Andrew Furey justify the Bay du Nord approval in the context of “transition.” Asked about climate change concerns, Premier Furey said, “The world recognizes that this is a time of transition, and there are many years in that period of time. So, if we accept that proposition, we accept that premise, then isn’t it imperative to select lower carbon emitting oil and if it is, then we have a brilliant project in front of us right now.”

Premier Furey, a physician, trained in a science discipline. He doesn’t deny climate change. He doesn’t deny a transition has to occur. His government made regulatory changes which have cleared the way for wind to hydrogen projects. The starting point for the Premier, however, is the premise that the transition off oil will take many years. That being the case, new exploration and new production offshore in the meantime is a rational and sound strategy.

Apart from the issue of financing it with public money, the problem is new scientific research says the premise Premier Furey is relying on is wrong.

The More Urgent View

A few days before Finance Minister Siobhan Coady announced the government was investing $13 million in new seismic surveying, the Secretary General of the United Nations said, “Humanity is on thin ice – and that ice is melting fast. . .The climate time-bomb is ticking.” Antonio Guterres was commenting on the release of an exhaustive study by the Intergovernmental Panel on Climate Change (IPCC). The study, representing the synthesis of the work of almost 700 scientists, concluded there should be, “no investment in new fossil fuel projects.”

The IPCC finding was not new. In 2021 the International Energy Agency (IEA) came to the same conclusion. At the time the Guardian newspaper quoted the IEA’s executive director, a man it described as “one of the world’s foremost energy economists,” saying, “If governments are serious about the climate crisis, there can be no new investments in oil, gas and coal, from now on – from this year.”

Walking On The Thin Ice

Andrew Furey, Siobhan Coady, and Charlene Johnson seem to think the transition period for the world to wean itself off oil is a lot longer than the IPCC and the IEA and Antonio Guterres think it is. The Premier and the finance minister and the oil industry spokesperson also say they are committed to reaching the province’s net-zero targets.

As a demonstration of their commitment to meeting those targets the provincial government established a Net-Zero Advisory Council in 2021. The media release announcing it said it would “focus on providing advice to the Provincial Government on how to achieve the 2030 and net-zero targets.” Okay, so did someone consult with the Net-Zero Advisory Council about the idea of spending $13 million on new seismic surveys for the oil industry?

The following is the reply from the Department of Industry, Energy, and Technology when asked that question: “The budget decision-making process takes in a wide range of views and perspectives from the public and interested groups. There was no specific consultation with the Net-Zero Advisory Council regarding the $13 million for seismic work in Budget 2023.”