According to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB), approximately 7.5 million barrels of oil were extracted from offshore Newfoundland and Labrador in December 2024, representing an increase of 18.0% compared to December 2023 (see Figure 1). The corresponding value of production increased by 20.1%, as gains from the decline in the Canadian dollar more than offset the Brent crude oil price decrease in December 2024 compared to December 2023.

Production increased at the Hebron, Hibernia and Terra Nova oil fields in December 2024 compared to December 2023. Production remained offline at the White Rose project, which began a shutdown in late December 2023. The SeaRose FPSO vessel subsequently sailed to Belfast, Northern Ireland in 2024 to undergo a refit as part of the field’s asset life extension project. That work was completed and the SeaRose was reconnected offshore Newfoundland on November 17, 2024, where further commissioning activities are ongoing. It is expected that the SeaRose will return to production in the first quarter of 2025.

Brent crude oil prices averaged US$73.86/barrel in December 2024, a 4.9% decrease from US$77.63/barrel in December 2023. This represents the lowest monthly average in 2024.

The global oil market continues to be influenced by ongoing supply restrictions by the Organization of the Petroleum Exporting Countries and partner countries (OPEC+) and geopolitical concerns. In early December, OPEC+ decided to further delay unwinding some of its oil production cuts until April 2025, following two previous shorter delays in November and October. The group has been holding back output to the tune of 5.9 million barrels per day, equal to about 5.7% of global demand, implemented in separate steps since 2022 to support the market. The ongoing Russia-Ukraine war and tensions in the Middle East also continue to influence oil prices. Most recently, the price of Brent crude oil climbed back to three-month high of US$82/barrel in mid-January 2025 but then receded to near US$76 in recent days. This can be partly attributed to uncertainty around a slowing Chinese economy, the potential effects of U.S. proposed tariffs, alongside concerns over increasing oil stockpiles.

The estimated value of Newfoundland and Labrador’s crude oil output is in Canadian dollars; the average Canada-US exchange rate in December 2024 stood at 70.2 cents/US dollar, compared to 74.5 cents/US dollar in December 2023. This represents the lowest Canada-US exchange rate since April 2003.

On an annual basis, approximately 76.5 million barrels of oil were produced offshore Newfoundland and Labrador in 2024, an increase of 4.6% compared to the 2023. The corresponding value increased by approximately 5.0%.

Further information on the province’s oil and gas industry is available in The Economy 2024 (see Oil and Gas section).