Improving regulatory efficiency, becoming more competitive and securing reliable energy are three key initiatives highlighted in the second progress report on Nova Scotia’s Energy Strategy, which was released on Thursday.

Cecil Clarke, the province’s energy minister, said the latest report “demonstrates how far we have come in such a short period of time.” Clarke unveiled the latest report at a meeting of the Offshore/Onshore Technologies Association of Nova Scotia.

The report highlights the provincial government’s efforts to implement its energy strategy over the past year and identifies the key priorities for the department in the months ahead. It also updates several government initiatives encouraging exploration, promoting the oil and gas sector, opening up Nova Scotia’s electricity markets to competition, supporting energy efficiency and conservation and addressing climate change.

“With EnCana’s deepwater well at Torbrook in late 2002 and Imperial’s deepwater well at Balvenie, we have had another busy season in our offshore,” said Clarke. “While these wells did not result in commercial quantities of hydrocarbons, other wells produced much better results,” which he said included EnCana’s shallow water wells at Margaree and MarCoh.

“Last year, the Department of Energy forecasted eight to 10 wells for offshore Nova Scotia over an 18-month period,” he said. “With six wells in the past 12 months and two to four wells forecast for 2004, we are meeting that target, but there is more to be done to encourage further exploration.”

He noted that there was “no doubt” that the Sable Offshore Energy Project (SOEP) “faces challenges with complex geology and difficult reservoirs — challenges that were brought to light earlier this year with Shell Canada’s announcement of a reduction in the estimated reserves, reducing the production forecasts and the royalties Nova Scotians can expect to receive from the fields current associated with the project. While this was disappointing news, it is also a reality check,” said Clarke. “This is a high risk industry, and Nova Scotia is a relatively new area with very real potential for continued commercial success.”

Nova Scotia’s first Energy Strategy was released in December 2001 as a guide for developing the province’s energy potential (see Daily GPI, Dec. 13, 2001). The strategy laid a foundation and set strategic directions, but was designed to remain flexible to meet the changing challenges and opportunities in the province’s energy sector.

With the creation of the Department of Energy in June 2002, the strategy has evolved from a stand-alone initiative to a guiding force. It has helped establish short- and long-term priorities that are reflected in the department’s business plan, policies, and programs.

The Progress Report and an appendix updating each action item in the Energy Strategy is available on the Department of Energy web site at www.gov.ns.ca/energy.

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