Offshore oil and natural gas

Offshore oil and gas is a significant source of energy for the global economy today and has been for a century or more.

Nova Scotia’s significant gas reserves in the Scotian Basin has played a big role in growing our ocean economy. Nova Scotia’s offshore oil and gas potential continues to be an opportunity for further exploration, development and prosperity.

About offshore oil and natural gas

Offshore oil and natural gas is found beneath the seafloor in continental shelves and deepwater basins. These deposits are trapped in sedimentary rock formations beneath layers of sand, silt and clay.

Offshore oil and natural gas is extracted through a series of advanced drilling and production techniques using specialized equipment. The process involves several main steps:

  • exploration and drilling – seismic surveys locate gas deposits, followed by test drilling using offshore rigs
  • extraction – permanent platforms or subsea wells extract gas using advanced drilling techniques
  • processing and transport – gas is separated from impurities, then sent to market. Modes of transportation that are currently available include:
    • pipeline (Maritimes and Northeast Pipeline and Heritage Gas)
    • rail (natural gas liquid)
    • truck (compressed natural gas)
    • marine (condensate, refined petroleum products and crudes)
  • safety – blowout preventers, monitoring systems and carbon capture help prevent leaks and reduce emissions

Offshore oil and gas development is not new to Nova Scotia. Our offshore has attracted some of the largest oil and gas companies from around the world. The province benefitted greatly over its 25 years of safe exploration and development. Major projects included:

  • Sable (1999–2018) – Nova Scotia’s first offshore gas project, supplying Canada and the US from 5 fields
  • Deep Panuke (2013–2018) – a smaller, short-term gas project from a single field
  • Canada’s first offshore oil project was also off Nova Scotia: Cohasset-Panuke (1992–1999), producing 44 million barrels

Benefits of offshore oil and natural gas

Offshore oil and natural gas offer many benefits to Nova Scotia, including:

  • energy supply – provides stable energy for electricity and heating
  • economic growth – creates jobs, infrastructure, and local revenue
  • lower emissions – helps transition from coal and oil to renewables

Nova Scotia's offshore oil and natural gas advantage

Nova Scotia's offshore sector has been characterized by:

  • geological potential – the Scotian Basin is a proven oil-and-gas-rich region
  • strategic location – close to North American, European, and other global markets
  • skilled workforce – Nova Scotia’s strong college and university system has trained offshore workers from Nova Scotia and around the world

Support and training

Nova Scotia has supports to adapt to the evolving energy sector. Supports include:

  • training programs – Institutions like Nova Scotia Community College provide courses in energy technologies, preparing the workforce for emerging opportunities
  • industry partnerships – collaboration between government, academia and industry promotes innovation and skills development in the energy sector

Responsible development

The Governments of Canada and Nova Scotia jointly manage offshore energy development through the Canada-Nova Scotia Accord Acts. In 2025, these laws were updated to include offshore clean energy.

The Canada-Nova Scotia Offshore Energy Regulator (CNSOER) is responsible for regulating offshore energy development, in accordance with the Accord Acts (PDF). The focus of the regulator is ensuring that operators explore, develop, produce and decommission projects in a safe and responsible manner. This includes monitoring areas of health, safety and environmental performance.

CNSOER Resources:

In 2026, the Impact Assessment Agency of Canada is conducting a Regional Assessment of Oil and Gas Exploratory Drilling in Nova Scotia’s offshore area. The environmental information collected through this type of assessment will be available to industry to support exploratory project planning and will help reduce timelines for assessments when individual projects come forward.

Economic Model

The Oil and Gas Exploration Economic Model is a spreadsheet-based model designed to provide industry with screening economics for the evaluation of oil and gas exploration prospects and discoveries in the Scotian Basin.

The model provides full cycle calculations, from exploration to abandonment and includes Nova Scotia offshore royalties and provincial and federal corporate income taxes.

Originally developed in 2008, this model has undergone several revisions, most recently in 2023, to reflect evolving economic conditions and technological advancements.

Geoscience research, data and maps

The Government of Nova Scotia continues to expand our understanding of offshore geoscience and make detailed research, maps and data sets available free of charge. This material gives an industry standard picture of Nova Scotia’s oil and gas potential to help attract investment for further exploration and development.

The Scotian Basin Integration Atlas (2023) is our latest geoscience research, using new data from recent exploration and advanced modeling technology. It updates much of the Play Fairway Analyses developed between 2011 and 2019 reflecting major enhancements in our understanding.

The first comprehensive geoscience analysis of the Scotian Basin region of Nova Scotia’s vast offshore began in 2009 and was published in 2011 as the Play Fairway Analysis (2011). It incorporated significant technical work and data from Geological Survey of Canada, Canada-Nova Scotia Offshore Energy Regulator and other sources. Following its completion, the Government of Nova Scotia funded research in more targeted areas to support open calls for bids, resulting in a vast collection of geoscience research and analyses.

Since 2011, there has been more than $2 billion in exploration commitments because of the investments made in geoscience research.

Contact

Department of Energy

Related legislation

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