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Federal environment minister backs search for offshore oil but warns industry emissions caps are coming

The federal minister of environment and climate change is backing the continued search for oil off Newfoundland's coast — for now.

Steven Guilbeault says oil will still be necessary in carbon-neutral world

A man in a black suit sitting at a table.
Federal Environment Minister Steven Guilbeault says oil will still be necessary in a carbon-neutral world, but less so. (Chris Young/Canadian Press)

Despite environmental groups warning against further exploration, and as wildfires and flooding decimate communities across Canada, the federal minister of environment and climate change is backing the continued search for oil off Newfoundland's coast — for now.

On Monday, Norwegian energy giant Equinor announced it had hired a semi-submersible rig to explore the Flemish Pass Basin next year, about 500 kilometres east of St. John's.

Steven Guilbeault said Wednesday that oil will still be necessary in a carbon-neutral world but at a reduced rate.

"Even in the carbon-neutral world in 2050, we will still be using oil. [But] we will be using far less oil than what we're using now," Guilbeault said at a funding announcement for Inuit-led climate adaptation and conservation in Nunatsiavut.

"We're a little above 100 million barrels a day. According to these organizations we will be somewhere between 25 million to 30 million barrels a day in a carbon-neutral world in 2050."

Environmental groups have sounded the alarm on the implications of continued offshore oil exploration. In March, several groups called on Ottawa to reject the Bay du Nord project and attempted to sue the federal government over its development.

An aerial view of the drill rig Hercules, when it was anchored in the waters off Bay Bulls on Newfoundland's southern shore.
The Hercules semi-submersible drill rig is slated to explore the Flemish Pass Basin in 2024. (Danny Arsenault/CBC)

Guilbeault said Wednesday that Canada was the best performer among G7 countries for reducing greenhouse gas emissions from 2019 to 2021.

The federal minister said he's also working to table new regulations to cut and cap the oil and and gas sector's carbon emissions.

He said the plan, which he hopes to table in the fall, will cap emissions at the current level.

Guilbeault also said there won't be any more "oil frontiers" — companies will only be able to drill in areas where oil is known to be located.

"We need to ensure that whatever oil or gas we're still using in 2050 that the emissions from those operations are captured and sequestered," he said.

"We're not allowing companies to go in places where there isn't already oil development happening."

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