Sable plans buoy gas industry

Nova Scotia's oil and gas industry is pumped that ExxonMobil is evaluating whether to explore for more gas near Sable Island this year.

The company has applied to conduct seismic testing at two previously identified gas fields under the seabed east of the island, including one only 30 kilometres from a field that currently produces gas. The work is expected to take place between May and October.

Many well-paying jobs depend on the results of those surveys, said Joe Fitzharris, chair of the Offshore/Onshore Technologies Association of Nova Scotia.

"I'm hopeful ExxonMobil will continue to look at Nova Scotia as a viable business opportunity," he said. "It's important that we are aware of the possible downside in the industry, that after the Deep Panuke and Sable projects there are currently no new projects announced to follow."

An estimated 3,000 jobs — both direct and indirect — depend on natural gas. Sable is Nova Scotia's only gas-producing project, injecting an estimated $2 billion into the province over a decade. But gas volumes are starting to decline.

Steve Foran, another OTANS boad member, is encouraged that ExxonMobil is pushing ahead, saying the company is "actively considering its options for significant discoveries around Sable."

ExxonMobil and the Nova Scotia government have begun royalty discussions around the potential development of a third-stage of Sable gas fields.

Meanwhile, first gas at EnCana's Deep Panuke project is expected to flow in mid-2011, about six months later than scheduled.