Economic Benefits
The offshore oil and gas industry has generated billions of dollars in economic activity for the people of Nova Scotia.
Those offshore revenues consist of royalties, crown share adjustment payments, offshore accord payments, forfeiture payments from offshore licenses, and rental payment from offshore exploration licences. In the fiscal year 2011–2012, the province received close to $286 million in royalties alone. Total offshore revenues received by the province from 2003–2004 and 2012–2013 is over $3.4 billion.
Industrial benefits are the economic benefits and opportunities that arise from petroleum resource activities in the Nova Scotia offshore area. The Accord Acts require an Operator to have an approved Canada-Nova Scotia Benefits Plan prior to the authorization of any work or activity or the approval of any development plan.
There is a direct economic benefit for the people of Nova Scotia when companies hire Nova Scotians as workers, and use our expert engineering, fabrication, and supply services.
For example:
- Total cumulative petroleum expenditures from 1998 until 2012 is $8.0 billion.
- Total cumulative amount of direct employment from 1998 until 2012 is around 38.8 million person-hours.
- Over 300 Nova Scotian supply/service companies are supported by the companies in the oil and gas industry.
In June 2006, the Nova Scotia Department of Energy and EnCana, the oil and gas company behind the Deep Panuke offshore project, signed an Offshore Strategic Energy Agreement (OSEA) which affirmed both parties’ obligations, commitments, and benefits regarding the Deep Panuke project.
For more information please see the OSEA document.
Our offshore sector continues to grow, and that means we can all expect to see the benefits grow as well.
Royalties
Nova Scotia’s Offshore Petroleum Royalty Regime is based on revenues and profits, while recognizing the inherent risks involved in offshore exploration and development. For more information, read this pdf and consult our Offshore Royalty Risk Map.