Energy NL has made a submission to the federal government’s consultation process on proposed caps on greenhouse gas emissions.

It’s asking Ottawa to abandon the new regulations which it says sidesteps the Atlantic Accord and will “effectively cap offshore oil production.”

The Chair of Energy NL, Jeremy Whittle, says the approach taken by the federal government will in practice, function as a cap on production, affecting jobs, revenue and royalties.

Modelling by energy analytics provider, Wood Mackenzie, suggests that in order to meet post-exemption emissions cap targets, operators would need to consider deferring start-ups, or develop smaller project phases.

Energy NL says in an already volatile business, that places serious risk on development potential by freezing out investment.