Ministry of Energy, Mines and Petroleum Resources Page 1. Offshore Oil and Gas Provincial Context UBCM Offshore Working Group February 17, 2006 Jean Dragushan.

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Presentation transcript:

Ministry of Energy, Mines and Petroleum Resources Page 1. Offshore Oil and Gas Provincial Context UBCM Offshore Working Group February 17, 2006 Jean Dragushan Offshore Oil and Gas Division

Ministry of Energy, Mines and Petroleum Resources Page 2. BC’s Offshore Basins

Ministry of Energy, Mines and Petroleum Resources Page 3. BC’s Offshore Oil and Gas - History 1960’s: Initial exploration 1980’s: Federal-Provincial Review : Technology Review/Scientific Panel – no fatal flaw issues that would rule out development – no inadequacy of science or technology applied in context of regulatory framework 2003: BC Offshore Team established 2005: ‘Offshore Team’ now a ‘Division’ in Ministry

Ministry of Energy, Mines and Petroleum Resources Page 4. Offshore Oil and Gas - Arguments Against Potential negative environmental impacts Unresolved aboriginal rights/title Gaps in scientific knowledge Use alternative energy

Ministry of Energy, Mines and Petroleum Resources Page 5. Offshore Oil and Gas - Arguments For Future Supply and Demand - Forecasts show clear need for hydrocarbons + clean energy Hydrocarbons will remain primary energy for some time to come Funding to support vital services – at 2005 prices resource value of Queen Charlotte Basin alone is Can$225 billion Jobs and business opportunities

Ministry of Energy, Mines and Petroleum Resources Page 6. Federal Review of Moratorium on Queen Charlotte Basin Three Parts: Science Public Review First Nations Engagement

Ministry of Energy, Mines and Petroleum Resources Page 7. Federal Review Science Review “Provided an adequate regulatory regime is in place, there are no science gaps that need to be filled before lifting the moratorium” “The Present restriction on tanker traffic entering the coastal zone should be maintained”

Ministry of Energy, Mines and Petroleum Resources Page 8. Federal Review Public Review (Priddle Panel) – 4 Options for next steps First Nations Engagement – Concern about environmental impacts, interest in benefits

Ministry of Energy, Mines and Petroleum Resources Page 9. BC’s Approach: Communities & First Nations Consider views of coastal residents in determining how to develop offshore oil/gas UBCM Offshore Working Group offers opportunity for discussion of key issues: UBCM Offshore Working Group offers opportunity for discussion of key issues: – benefits (provincial and local); regulatory regime; environmental assessment Meet obligations regarding First Nations rights and interests – role for First Nations in management and share in benefits

Ministry of Energy, Mines and Petroleum Resources Page 10. One Company’s Assessment Prospectively highly uncertain, technology exists, environmental must be addressed (appears doable) T echnical E conomic C ommercial O rganizational Political/societal Costs and economics uncertain Market outlook very favourable Industry capability exists, limited current capacity for West Coast Offshore Jurisdiction, fiscal, regulatory framework are undefined, meaningful First Nations engagement required…mixed stakeholder messages

Ministry of Energy, Mines and Petroleum Resources Page 11. The Future New Federal Government – Potential for Decision on Moratorium? Next Steps