Quebec's shale gas industry could create as many aQuebec's shale gas industry could create as many as 19,000 jobs: report
Thu Oct 7, 5:40 PM
The Canadian PressBy The Canadian Press
SAINT-HYACINTHE, Qc - A report byadvisory firm Secor says Quebec's controversial shale gas industry couldgenerate between 5,000 and 19,000 jobs and more than $1 billion inannual royalties for the province.
The advocacy study conducted on behalf of The Quebec Oil and GasAssociation says each gas well on Quebec's Utica shale formation wouldgenerate $1.85 million in value added to Quebec and some 33 jobsannually during the drilling phase.
However, the report released late Thursday by Secor partner DanielDenis, said the production phase of a well, which stretches over 50years, would create relatively few jobs—28 per 100 wells in production.
The report says royalties are the bigger benefit to the provinceduring the production phase and at a rate of 10 per cent, each wellcould generate $150,000 for Quebec each year.
"At this stage we cannot predict the level of industry development,as the potential in Quebec is not sufficiently characterized," the firmadded in the report.
Quebec has vast reserves of natural gas trapped in the rock beneaththe St. Lawrence River lowlands and environmental hearings on the gasexploration plans are taking place this week.
The hearings are examining the risks of tapping a5,000-square-kilometre energy source one federal document has called anenergy "game changer.'' The gas is becoming increasingly popular as theprice of oil climbs and the U.S. and Canada search for domestic sourcesof energy.
The proposed endeavour to unlock gas from the shale has ignitedboisterous protests in recent weeks and made international headlines,including an article in The Economist magazine.
Quebecers have been outspoken with concerns about potentialenvironmental impact, like possible contamination of drinking water andpipeline problems.
But government and industry players say the reservoirs are toolucrative to pass up. In just a few years, companies have leased theentire region.
Still, the fledgling industry is growing too fast for its opponents,prompting them to call for a provincewide moratorium on exploration andproduction.
Shale gas production, already underway in Alberta and BritishColumbia, and U.S. states including New York and Texas and Quebec is notthe only North American jurisdiction where concerns have surfaced overthe exploitation of shale gas. New York state called a temporarymoratorium in August.
Fears raised in several other states have prompted the U.S.Environmental Protection Agency to launch a study into the potentialrisks to the environment and human health.
Natural Resources Canada has warned the Canadian government thatdrilling for shale gas could increase carbon-dioxide emissions, encroachon wildlife habitat and sap freshwater resources.
Secor is a strategic adviser businesses and public organizations in Quebec and across Canada and the U.S.
The Quebec Oil and Gas Association is a lobby group the represents Quebec's oil and gas industry.