Canada launches oil and gas review

Gary Park

For Petroleum News

In a rare show of unity, members of the Canadian Parliament have endorsed a motion urging the federal government to review and revise its laws governing the development of the oil sands, shale gas and offshore oil and gas.

Natural Resources Minister Christian Paradis and Environment Minister Jim Prentice were among the 274 Members of Parliament supported a motion by Linda Duncan, representing the left-wing New Democratic Party, calling for the broadest possible consultation with all interested stakeholders “to ensure Canada has the strongest environmental and safety rulers in the world.”

Paradis noted the National Energy Board has already agreed to review its regulations relating to project management and offshore drilling.

“No project will be allowed to go ahead in Canada until the board is satisfied that the safety and security of workers will be ensured and that the environment will be protected,” he said.

Paradis said the NEB review will be conducted in a “transparent manner” and be open to public participation.

Meanwhile, Max Ruelokke, chief executive officer of the Canada-Newfoundland and Labrador Offshore Petroleum Board, reiterated there will be no repetition of the disastrous Gulf of Mexico blowout at Chevron Canada’s Lona O-55 exploration well in Newfoundland’s Orphan basin because of an increase in regulatory oversight and adherence to existing rules.

“We believe that things that were done in the Gulf of Mexico were not in compliance with the existing regulations in the Gulf and probably not even in compliance with good oil field practice,” he said.

“We would never allow such a thing to happen. Our policy, procedures, training, equipment are such that it will not happen.”

He said the blowout preventer for the Lona well was tested repeatedly before being deployed and that safety procedures in place would prevent a failure of the device.

Ruelokke said the regulator is also considering an increase in the current C$350 million in financial guarantees that must be posted by drillers in the Newfoundland offshore.

As well, he expects new regulations will introduce “improvements and changes” for blowout preventer systems.

“We don’t believe there’s any immediate need to change what we are doing now, but I expect the world is going to shift underneath our feet when it comes to control of a subsea well,” he said.