Oil companies call for clarity on N.L. energy policy

Companies working in Newfoundland and Labrador's offshore oil industry want Premier Danny Williams to clear the air on his government's energy policy.

A comprehensive energy plan had been expected last year, but is still under review. Williams has said he intends to release it before the general election scheduled for Oct. 9.

Although oil exploration is booming in many parts of the world, there has been little exploration off Newfoundland and Labrador in recent years.

Delegates to the Newfoundland Ocean Industries Association meeting this week in St. John's say low levels of exploration are linked to a lack of clarity about the government's intentions.

"In my view, we need to see the energy plan," said Brian Maynard, vice-president of public affairs with the Canadian Association of Petroleum Producers.

"Right now, I think we are in a period of hiatus because we don't know what the rules are on a go-forward basis."

NOIA president Ted Howell said exploratory drilling off Newfoundland and Labrador has been declining for two decades and that the province is falling behind.

"We haven't seen any uptake in our activity here in our basins, when the rest of the world has seen pretty much record levels in exploration activity," Howell said.

The energy plan which will deal not just with petroleum but other energy sources, including hydroelectric power and wind generation is expected to include a government demand for an equity stake in future developments.

Williams, who had been critical of NOIA after negotiations on the Hebron megaproject broke off last year, adopted a conciliatory tone during his speech to NOIA delegates this week.

Williams also announced thatthe government is talkingagainwith Hebron partners in the hope of reviving formal bargaining.