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
- Clean Economy Grants Program – helps master's students research areas of importance to Nova Scotia's energy sector
- Clean Economy Scholarship Program – helps students entering college or university with a scholarship to gain the skills for work in the renewable energy sector
- Energy Training Program – helps businesses in the energy sector hire post-secondary students and recent graduates
Responsible development
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 is responsible for regulating offshore energy development, in accordance with the Accord Acts. The focus of the regulator is both environmental protection and the health and safety of offshore workers.