Newfoundland & Labrador

Newfoundland and Labrador Opinion

Share this Story : PNI Atlantic News Copy Link Email X Reddit Pinterest LinkedIn Tumblr

OP-ED: Best investment Canada ever made was one the private sector walked away from

In 1993, Gulf Canada Resources looked at Hibernia and walked. The project was too expensive and remote.

Subscribe now to access this story and more:

Unlimited access to the website and app

Exclusive access to premium content, newsletters and podcasts

Full access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment on

Enjoy insights and behind-the-scenes analysis from our award-winning journalists

Support local journalists and the next generation of journalists

Subscribe or sign in to your account to continue your reading experience.

Unlimited access to the website and app

Exclusive access to premium content, newsletters and podcasts

Full access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment on

Enjoy insights and behind-the-scenes analysis from our award-winning journalists

Support local journalists and the next generation of journalists

Create an account or sign in to continue your reading experience.

Access additional stories every month

Share your thoughts and join the conversation in our commenting community

Get email updates from your favourite authors

Sign In or Create an Account

When Gulf pulled its 25 per cent stake, the conventional wisdom was that Hibernia was a project the private sector couldn’t justify because it was too uncertain.

Canada bought part of Gulf’s share anyway.

That stake, held today by Canada Development Investment Corporation (CDEV) through its portfolio company, Canada Hibernia Holdings Corp., has since returned more than $3.8 billion to the federal treasury – to Canadians. The field produced its billionth barrel in 2016. It still averages 70,000 barrels a day and supports nearly a thousand jobs in Newfoundland and Labrador.

Over the course of our careers, we’ve seen a simple reality play out repeatedly: some of Canada’s most important projects only move forward when governments are willing to take a longer view than private markets.

That instinct, stepping in where private capital flinches, then........

© PNI Atlantic news