Oil exploration gives St. John’s NL fastest growing economy

The city of St. John’s, Newfoundland and Labrador will lead the country in economic growth in 2013 thanks to an increase in offshore oil exploration, the Conference Board of Canada says. GDP growth in the city is forecast to be 5 per cent this year, outpacing the fourteen other cities included in the Metropolitan Outlook: Summer 2013.

Mario Lefebvre, Director of the Conference Board’s Centre for Municipal Studies, said, “As the hub for the provincial offshore petroleum industry, St. John’s economy will get a lift from higher offshore oil and gas production. Growth in the construction sector will continue to be positive this year, though more modest than in recent years.”

statistics-canada-GDP-economy-growth-industry-manufacturing-construction-oil-energy-EDIWeekly
Overall, Canada’s GDP grew 0.2 per cent in May, with service industries leading the growth and goods production falling. Source: Statistics Canada

Among the oil companies at work in the area is Husky Energy, which plans an extension to its White Rose field 350 kilometres offshore of St. John’s. The White Rose field is thought to contain 440 million barrels of recoverable oil, as well as gas. The extension, known as South White Rose, has a target of 20 million barrels.

Statoil of Norway recently announced a new discovery 500 kilometres northeast of St. John’s. The Harpoon discovery, which is 65 per cent owned by Statoil and 35 per cent by Husky, is at a depth of 1.1 kilometres. Its extent is unknown. It is very close to the Mizzen discovery, estimated at 100–200 million barrels.

Enegi Oil also continues its exploring in Newfoundland. The company has partnered with Black Spruce Explorations, which will drill four “commitment wells” this fall. This is expected to lead to a multi-well drilling campaign.

Chevron is one of the larger oil companies exploring in the area at the Margaree exploration well, at a depth of 2.47 kilometres. Chevron holds interests in the Hibernia oil fields, as well as the Hebron Field, with an estimated 600 million barrels.

Other cities covered in the Conference Board report will also see growth, but at the more modest rate of 1–2 per cent. Construction activity in several southern Ontario cities will partially offset manufacturing losses there, while in other cities, including Thunder Bay, Abbotsford and Moncton manufacturing will contribute to the growth. Windsor, Ontario can expect growth of 1.5 per cent in 2013 the report says, better than London’s, which will reach just 1.2 per cent.

The construction industry across Canada saw a decline of 10.3 per cent in the value of permits issued in June, Statistics Canada reports. Residential construction in Ontario was down, as was non-residential construction in Quebec. The decline in Ontario was mainly attributable to a slowing of multi-family residential construction, i.e. condominiums. Despite the dip, the first in six months, Statistics Canada says that the total value of building permits continues to trend upwards.

Did you miss this?

Other Popular Stories

  • Canada's wholesale sales rose 0.7 per cent in June, to $56.4 billion
  • Lower Model 3 prices can't prevent Tesla's slide by 3% after deliveries fail to impress; Tesla opens orders to Europe and China
  • Alberta to allow increased production of 25,000 barrels of oil per day in April; eases mandatory production cuts
  • Tesla is now the number one valued carmaker in America, jumping ahead of GM
  • Lockheed Martin reveals breakthrough nuclear fusion process
  • Lane-Changing Algorithm Improves Driverless Vehicle Performance
  • Autos and parts drag down manufacturing sales in August
  • Manufacturing rose again in second quarter
  • Renewable energy advocates optimistic, but political will is lacking
  • A cloaking device possible? Stealth technology studies virtual invisibility through "irradiating with its own specific pattern"
  • IBM reveals super-efficient solar power system prototype
  • Public support for refurbishing nuclear at all-time high: survey
  • Ford to boost profits by cutting 1400 salaried workers in North America and Asia
  • Grid-scale electricity storage solution from New York startup
  • Flying Brain to Assist Astronauts Aboard Space Station
  • Major job losses predicted on oil spending slump
  • Bombardier, NetJets launch new Challenger 350
  • Netherlands company to test plastic road construction
  • Greater transparency, accountability called for in new homes warranty plan for Ontario
  • High speed rail finally coming to Toronto-Windsor corridor? What will Ontario high speed look like?
Scroll to Top