BP pulls out of Bay du Nord; Sierra Club Canada says this is a warning sign against public subsidies

In a news release by BP yesterday, VP Gordon Birrell, said “bp is exercising strict capital discipline, allocating it to the opportunities that create the most value for BP.

One of the co-owners of the Bay du Nord application has pulled out. In a news release by BP yesterday, VP Gordon Birrell, said “BP is exercising strict capital discipline, allocating it to the opportunities that create the most value for BP." Equinor will become the sole owner of Bay du Nord and has bought BP’s interest. 

Meanwhile, the Sierra Club Canada says this is a warning sign against any public subsidies or investment and project viability. Conor Curtis says the federal government has already promised to cover fees for the project up to $1B and if Equinor believes this project is viable they would not be looking for public subsidies or keeping BP invested.  He says the ongoing war in Iran and the energy crisis as a result has contributed to high oil prices now and Bay du Nord will not come on line until 2031. Curtis says according to an analysis by Ember Energy, peak oil demand globally could happen now before 2029. 

The Canada–Newfoundland and Labrador Offshore Energy Regulator (C-NLOER) is in Corner Brook for an in-person information session about the Bay du Nord project this evening at the Glynmill Inn. Curtis says people need to ask questions about the economics of the project and future oil demand. He says renewable energy is the way forward. 

Premier Tony Wakeham says “Regulatory, technical and procurement activities remain on schedule, and Equinor has reaffirmed its commitment to safe, responsible development while continuing to evaluate future partnership opportunities as the project progresses.”