Not just an oil expo: Energy N.L. conference kicks off with hubbub around hydrogen
There was a long line Tuesday morningat the coffee station in the St. John's Convention Centre, where hundreds of delegates packed in for the annual Energy N.L. Conference and Exhibition.
Their name tags sank low as they leaned over to secure the lids on their cups, revealing their names and affiliations. Oil workers are the norm here, but this year those name tags reveal something else — a new wave of workers hoping the province can break open an industry that's still got more questions than answers.
The conference is sold out this year — which Energy N.L. says is a first — amid a surging interest in 19 green hydrogen proposals involving windmills, electrolyzers and ammonia facilities across Newfoundland.
"I truly do believe there's more opportunities energy-wise in this province than any time previously," Energy Minister Andrew Parsons told reporters after the conference's first session. "It's a good time right now. I'm going to be happy with that, because when I first came in here there were a lot of difficult days."
Parsons took over the portfolio in August 2020, a few months into the COVID-19 pandemic and subsequent upheaval of the province's offshore oil industry. Oil companies were angling for more provincial help, with hundreds of jobs hanging in the balance.
Less than three years later, the conference — themed "unbridled opportunity" — shows a different tone in the energy sector.
"This is an incredible year," said Moya Cahill, executive vice-president of Kraken Robotics and a veteran of the province's offshore industry. "We've never had a show that's been sold out. And you can really feel the buzz in the air here."
The conference opened with a session dominated by oil executives, but it was perhaps telling that Exxonmobil's Canadian president dedicated time in his speech to the company's windmill lubricant before giving status updates on its major projects like Hibernia and Hebron.
The second session featured leaders from eight companies giving five-minute explainers on their wind-to-hydrogen proposals. The projects are huge, and the dollar amounts staggering.
The proposals span the island, from the Port au Port Peninsula, through the Exploits Valley to Trinity Bay, and on to Come By Chance and Placentia Bay.
"The Newfoundland and Labrador [power] grid is only at about 220 megawatts now." said Ted Lomond, president of North Atlantic, which is one of two bidders in Come By Chance. "One study shows that 25 per cent of the suitable land in Newfoundland and Labrador would be 60 gigawatts."
The provincial government is in the process of combing through those applications and figuring out how many can succeed. Phase 1 of those reviews is expected to be done within a couple of weeks, Parsons said, with winners being announced by early July.
Optimism for oil remains high
While the hype around hydrogen is palpable inside the convention centre, the conversation around oil was similarly glowing.
Demand for oil will begin to fall by 2030, experts say, but none of the speakers on the first panel seemed to see that as an impediment to the industry's future.
Jim Keating, CEO of the Oil and Gas Corporation of Newfoundland and Labrador, compared the current situation to the end of the first season in a three-season TV series — with BP's drilling of the Ephesus well as the cliffhanger finale. Will they strike black gold over a kilometre below the surface of the north Atlantic? Stay tuned, he said.
Drilling began earlier this month and is expected to last between two and five months. Keating said the implications are massive if they find another deepwater reserve in addition to Bay du Nord.
"It seems that deepwater is the next chapter for the industry the world over," Keating said. "Deepwater investment has garnered the highest amount of investment since 2015, and particularly so since the end of the pandemic. Newfoundland and Labrador is well situated to participate in that renewed investment."
Critics say that optimism is short-sighted.
"There is a consensus now across the international analysis about oil demand — and this includes some of the analysis by major oil firms themselves — that global oil demand is going to be peaking at around 2030," said Angela Carter, an assistant professor at the University of Waterloo, in an interview prior to the conference. "Afterwards, it declines and it is a sharp decline that doesn't return. It doesn't rebound."
The conference continues Wednesday with speakers in wind-to-hydrogen, oil and politics. It wraps up Thursday, with a session focusing on the skills needed for success in offshore oil, gas and wind for years to come.
