BP Exits Bay du Nord: Warning Sign Against Any Public Subsidies / Ownership & Project Viability

“If BP doesn’t see Bay du Nord as a good investment in terms of return and debt that is a massive warning against any public investment in the project, and against the Bay du Nord project’s viability. It’s important to note that Bay du Nord would come online (optimistically) by 2031, but accelerated renewable adoption due to the current energy crisis could speed up a peak in global oil demand to before 2029,” says Conor Curtis Director of Communications at Sierra Club Canada.

“The International Energy Agency has previously said that in rapid renewable adoption scenarios no new oil and gas projects would be needed and the IEA’s Fatih Birol, the world’s leading energy economist, also says the UK should largely forgo oil and gas expansion in the North Sea. North Sea expansion was far more viable than Bay du Nord.

“The Canadian Government already agreed to subsidize the project to the tune of 1 billion dollars just to keep it under consideration. That BP has now exited shows this project is not viable and we need a rapid – community-focussed – build out of transmission infrastructure for renewables, like offshore wind, for NL instead.”