If we could magically suck all of the oil out of the Hebron offshore oilfield right now, Newfoundland and Labrador could supply the entire world with exactly eight and half days worth of oil.
Eight and a half days and thats it.
If we wanted to take every single remaining barrel of oil in the four major Newfoundland oil fields (Hibernia, Hebron, Terra Nova and White Rose) we could supply the entire world with approximately 20 days worth of oil.
Twenty days of global consumption and every last drop of our oil is gone.
If we look at the graph above, we can see that Newfoundland and Labrador has approximately 1.7 billion barrels of oil reserves left.
While this is a big number in terms of it’s economic impact to our province, 1.7 billion barrels of oil is relatively small when we look at global oil reserves.
We need to make our remaining oil reserves (and the economic impact that comes with it) count.
From the Caspian Sea to South America, Western oil companies are being squeezed out of resource-rich provinces. They are being forced to renegotiate contracts on less-favorable terms and are fighting losing battles with assertive state-owned oil companies. And much of their production is in mature regions that are declining, like the North Sea. NYTimes
China and India, which makes up 40% of the world’s population, has an appetite for oil that will put even more pressure on global oil reserves.
We have something very valuable – something the world wants desperately – lets make it count.
Newfoundland and Labrador Oil Field Quick Facts
via the Globe and Mail
HEBRON Operator: Chevron Corp.
Discovered: 1980-81
Estimated cost : $5-billion, as of August, 2007
Reserves: 720 million barrels
Partners: Chevron 28%, Exxon Mobil 37.9%, StatoilHydro 10.2%, Petrocan 23.9%
Newfoundland and Labrador government will earn 4.9-per-cent equity position. It is not clear how the government share will affect current partners’ stakes.
HIBERNIA Operator: ExxonMobil
Discovered: 1979
First Production: 1997
Cost: $5.8-billion
Reserves: 1.24 billion barrels
Production: 594.4 million barrels, as of July 21, 2008
Partners: Exxon Mobil 33.125%, Chevron 26.875%, Petrocan 20%, Canadian government 8.5%, Murphy Oil Corp. 6.5%, StatoilHydro 5%
TERRA NOVA Operator: Petrocan
Discovered: 1984
First production: 2002
Cost: $2.8-billion
Reserves: 354 million barrels
Production: 239.9 million barrels, as of July 21, 2008
Partners: Petrocan 34%, Exxon Mobil 22%, StatoilHydro 15%, Husky Energy Inc. 2.5%, Murphy Oil 12%, Mosbacher Operating Ltd. 3.5%, Chevron 1%
WHITE ROSE Operator: Husky
Discovered: 1984
First Production: 2005
Cost: $2.4-billion
Reserves: 310 million barrels
Production: 95.2 million barrels as of July 21, 2008
Partners: Husky 72.5%, Petrocan 27.5%,
Newfoundland and Labrador has taken a 5-per-cent stake in Phase 2.
