Heading for the horizon

These are anxious times for Nova Scotia’s deep water. The emerging region has failed to generate the reserves needed for a commercial development and there are signs of wavering among key players on their lease commitments. WJ Simpson reports

FOR ALL OF the geological parallels drawn with the Gulf of Mexico, offshore Brazil and west Africa, the talk of gas reserves potential of up to 50 trillion cubic feet (cf) and a favourable fiscal regime, the Scotian Shelf is struggling for a breakthrough. The nine deep-water wells drilled so far have yielded only one minor discovery and one gas show. And now, with the clock ticking on 29 leases, many exploration plans are being deferred. Troubling indicators Two of the most troubling indicators have seen Murphy Oil, the fifth-largest deep-water leaseholder, decide to sell five of its 12 offshore Nova Scotia licences to pursue better opportunities in the Gulf of Mexico and Malaysia, and El P