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NOIA Golf Tournament
Thursday, 16 Sep 2010
  
5th International Symposium on Oil and Gas Resources in Western Newfoundland
Wednesday, 22 Sep 2010
  
Maritime Human Resource Conference
Tuesday, 28 Sep 2010
  
Networking Social
Thursday, 28 Oct 2010
  
Member Christmas Reception
Thursday, 9 Dec 2010
  Lorneville Mechanical Contractors
  Martin Industrial Group
  Spatial Energistics Group Inc.
  Tailwinds
  Weatherford Laboratories
 
News
NOIA responds to 2008 NL Budget

St John’s, NL; 2008-04-29 - The Newfoundland & Labrador Oil & Gas Industries Association (NOIA) is saying that the provincial government has today released its third consecutive petroleum budget.

“This is another oil and gas budget,” says NOIA President & CEO Bob Cadigan, “and our oil and gas industry is proud to be contributing so much to our province’s fiscal strength. Fully 25% of 2007 revenue and as much in anticipated revenue for 2008 comes from oil royalties. And that doesn’t factor in the corporate taxes generated by the petroleum supply and service sector, or the additional income taxes generated by over 10,000 people at work in this province because of oil and gas.”

With Hibernia, Terra Nova and White Rose in operation, some 3000 people work directly on oil projects. An estimated 4500 work in industry-related jobs with supply and service companies, and spin-off economic activity accounts for an additional 3000 jobs.

“The value of the petroleum industry to the Newfoundland & Labrador economy cannot be overestimated,” says Cadigan. “It is the major driver of capital expenditure, increased employment and GDP growth, now and well into the future.”

The provincial government economic overview cited real GDP growth of 7.9% in 2007.  Recent StatsCan figures are still more impressive, pegging Newfoundland & Labrador’s GDP growth at 9.1% - three times the national average and three times provincial growth in 2006. Both overviews attribute growth primarily to oil and gas.  

The province’s unemployment rate now stands at 13.6%, the lowest in 26 years. Cadigan maintains that, with direct, indirect and induced employment standing at over 10,000 as a result of petroleum activity, the oil and gas industry can claim its share of credit for this more favourable employment-unemployment balance.

NOIA is also praising government for its strategic investments in areas that will support Newfoundland & Labrador’s petroleum industry and foster its sustainability over the long term.

Cadigan points to key investments that will assist NOIA members and the petroleum industry as a whole:
“Government has invested in the ‘3 Is’ – Innovation, Infrastructure and Industry growth.  Those are the key ingredients for petroleum sector sustainability – as well as for other industries.”

NOIA cites the following specific investments as particularly valuable.

Innovation:
• $1.5 million to establish the Newfoundland & Labrador Research & Development Council, which will help focus the work of industry and government to leverage our R&D capacity and drive industry-supportive innovation
• $4 million for ocean technology development, which will help keep Newfoundland & Labrador at the crest of the ocean innovation curve and assist the offshore petroleum industry to develop our resources in an increasingly safe and profitable manner

Infrastructure:
• $33.9 million for two new provincial ferries, which will provide opportunity for our fabrication facilities and marine technology providers, keeping our yards occupied and our people working at home
• close to $3 million for Bull Arm maintenance & upgrades, which will keep this world-class facility ready to take advantage of opportunities arising in both domestic and export markets

Industry growth:
• $215 for capital investment in major projects, facilitating the emergence of the province’s new Energy Corporation as a knowledgeable, valued partner in petroleum developments
• $28 million for the Business Attraction Fund, which hopefully will attract still more global majors to establish Canadian headquarters or satellite facilities in Newfoundland & Labrador, increasing our resident petroleum support capability, increasing our industry’s overall competitiveness and providing greater business opportunity for our companies and employment opportunities for our people
• $13 million toward Energy Plan priorities; NOIA has been working and will continue to work with the Department of Natural Resources to help develop and implement strategies, particularly for prospectivity marketing and strategic enhancement and promotion of our supply and service sector capabilities.

NOIA also applauds government’s investment in initiatives that will help our petroleum industry address its emerging human resource challenges.  Funding is particularly welcome in the areas of youth attraction and retention, promotion of skilled trades, enhancements to industry-related programs in the secondary and post-secondary education systems, and support for apprenticeship learning.  The related budget initiative of raising the payroll tax threshold will also contribute to the ability of Newfoundland & Labrador resident supply and service companies to attract workers in a highly-competitive petroleum labour m market.

Cadigan says that all these initiatives will contribute to industry sustainability:  “It’s about re-investing some of those very substantial petroleum revenues to help our industry achieve its potential, keep creating business and employment opportunity, and continue to provide healthy revenues to our treasury into the long term.  Attracting exploration and fostering development are the keys – and government is taking steps in that direction in Budget 2008.”

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Media Contacts:

Allison Boone, Research & Communications Coordinator
Tel: 709-758-6619; E-mail: aboone@noianet.com

Deirdre Greene, Vice President (Policy & Communications)
Tel: 709-758-6617; Cell: 709-691-2208; E-mail: drgreene@noianet.com

NOIA (Newfoundland & Labrador Oil & Gas Industries Association) is Canada's largest offshore petroleum association and has been headquartered in Newfoundland and Labrador since its founding in 1977. With over 470 members in this province and around the world, NOIA is the information hub of the NL oil and gas industry.  NOIA members provide products and services for the petroleum sector; associate members include petroleum companies, trade associations, and government bodies and agencies.
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