(Bay du Nord FPSO concept art, courtesy of Equinor.)
A professor of economics at the University of Calgary believes the Bay du Nord project could change the financial game for Newfoundland and Labrador.
Equinor’s huge $ 12 billion offshore oil development received federal green light earlier this year.
The final investment decision is expected in the coming years and the first oil is not expected until 2028.
Trevor Tombe, a professor of economics at the University of Calgary, says increasing offshore production could not only increase offshore royalties but also generate more tax revenue from increased economic activity.
Senior Investment Advisor with Short Financial, IA Private Wealth branch in St. Louis. John’s, Larry Short says Tombe’s analysis shows far greater financial implications than previously discussed.
Short says production costs in the Bay du Nord range from $ 85 to $ 90 a barrel, which could be a significant recovery in the provincial economy.
