OPINION: This month’s politically charged decision by Canada’s federal government to approve Equinor’s US$9.5 billion Bay du Nord oil project offshore Newfoundland & Labrador reflects the compromises that will be made as the energy transition progresses.

Ottawa’s decision covers only environmental aspects of the deep-water scheme, but it presages an almost inevitable final investment decision.

Once Bay du Nord is online – most likely in 2028 – the field could probably keep producing into the 2050s.