The government of Nova Scotia has initiated a comprehensive effort to revitalize its oil and gas sector, driven by national energy ambitions and improved geological prospects. This strategy involves launching a new offshore licensing round and lifting a previous ban on onshore hydraulic fracturing.

Offshore Licensing Round

A new offshore bid round is open, with a closing date of 28 April 2026. It offers 13 parcels: eight in the deepwater Scotian Slope (200-4300 meters water depth) and five on the Scotian continental shelf, an area of historical production. The shallow-water parcels are near 21 significant discoveries, eight of which were commercially developed. The shelf areas have good-to-excellent natural gas and moderate oil potential, while the deepwater parcels have good-to-excellent gas potential. The plays involve the Upper Jurassic to Cretaceous Sable delta and associated deepwater systems, with common trap types including rollover anticlines on the shelf and abundant stratigraphic and salt-related traps in deepwater.

Resource Potential and Rationale

The Scotian basin is described as one of Canada's most under-explored regions, with recent geoscience identifying large undrilled structures. Estimates suggest potential resources of up to 150 trillion cubic feet of gas and over a billion barrels of oil. The provincial premier stated that Nova Scotia's development is pivotal to achieving Canada's national energy ambitions, citing strong regulatory support, improved geological understanding, and growing industry interest. The government is also pursuing an expedited federal regional assessment to establish an environmental framework for future activities.

Onshore Exploration Revival

The province has lifted a ban on hydraulic fracturing in shale formations, which had been in place until 2025. This opens the Windsor and Cumberland basins for conventional and unconventional gas exploration. The government cites updated geological assessments and political commitment as creating renewed momentum, supported by an established onshore data room.

Government Support and Investment

To stimulate activity, the government is implementing a C$30 million (about US$22 million) drilling incentive programme. It is also creating a Subsurface Energy Research & Development Investment Programme in partnership with Dalhousie University. The premier emphasized strong governmental backing for companies exploring the province's oil and gas potential.