An economics professor at the University of Calgary believes the Bay du Nord project could be a fiscal game-changer for Newfoundland and Labrador.

Equinor’s massive $12 billion deep-sea offshore oil development was given the federal environmental green light earlier this year.

A final investment decision is expected in the coming years and the first oil isn’t expected until 2028.

University of Calgary economics professor Trevor Tombe says rising offshore production may not only increase revenue from offshore royalties but generate greater tax revenue from increased economic activity.

Senior Investment Advisor with Short Financial, a branch of IA Private Wealth in St. John’s, Larry Short says Tombe’s analysis shows far greater economic impacts than has been previously been discussed.

Short says production costs on Bay du Nord are in the range of $85 to $90 a barrel, resulting in what could be a significant upturn in the provincial economy.