A local market analyst says developing Bay du Nord may be the right choice when it comes to the ethical transition away from fossil fuels.
Larry Short, a senior investment advisor at Short Financial, a branch of IA Private Wealth says as gas prices continue to rise and demand outstrips supply, then the market may move to other sources of oil that may support individuals or regimes who are doing harm.
Short says the argument against developing Bay du Nord is based on the assumption that if we don’t produce oil, then no-one else will.
He says if Newfoundland and Labrador oil production is shut down, that helps to drive up the price of oil and makes oil production in Russia much more profitable. He says the markets could also rely more heavily on countries like Saudi Arabia, or even Nigeria which he says has very lax environmental standards.
