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Message: Article by M. Binnion
Excellent article by M. Binnion in response to enviromental concerns in Quebec. Continued great management of this play by QEC
(In response to the text "The shale gas in Quebec: social marketing intelligence citizen?") - We read with interest the recent open letter on shale gas. We are disappointed that the authors recover the same old myths from U.S. political pressure groups.
The gas belongs to the citizens of Quebec and so we all agree that citizens should be well informed. We can all agree that development should benefit the citizens of Quebec and certainly not to harm them. We respect the opinions of others but we believe it is important to clarify some facts.
We would like to point out some errors found in the letter.
One. Natural gas and shale gas development, is an industry that is no different industries such as aluminum, mining, pulp and paper industries were operated hydroelectric safely to Quebec for decades. The industry demand for raw materials such as water and chemicals are also used in other industries. Like other industries, it operates safely in Quebec and other provinces of Canada for years.
The development of shale gas in Quebec will use less than 2% of water used by the pulp and paper, and 3% of water used by the mining industry. Water is supplied from rivers and streams rather than groundwater aquifers. Biofuel uses 9400 liters of water to produce the same amount of energy that the gas shale product with only 5 liters of water.
The highly diluted chemicals used in the development of shale gas has a concentration of less than 0.005%. They are found in products typically used for housekeeping. Questerre publishes a list of these chemicals on its website. Benzene and diesel are never used.
Methane is a natural organic compound which is why it is called natural gas. It is present in almost all shallow wells drilled in the lowlands in Quebec including water wells. Farmers have used the gas they have found by drilling wells for decades.
The natural gas produced in Quebec do not contain hazardous chemicals such as H2S (hydrogen sulfide). This has been demonstrated by several tests that have been submitted to the Department of Natural Resources and Wildlife (MNR).
The innovations in horizontal drilling technology allows us to use a very small area of land (use less than 0.02 square km of land used to extract gas from more than 5 square kilometers under the earth ) allowing farmers to maximize the use of their land in addition to giving them access to new revenue.
The laws and regulations of Québec frame the drilling process. This includes in particular the Mining Act, the Act on the Protection of land and agricultural activities and the Act on Environmental Quality. Drill a hole in Quebec requires licensing and more time than almost any other jurisdiction in Canada and shows that the Mining Act does not obstruct other laws.
We have contingency plans in place for drilling operations that are required which is quite logical.
The use of natural gas produces fewer emissions than heating oil used by several families in Quebec and less than diesel or gasoline powered vehicles. Moreover, eliminating transportation costs associated with moving natural gas throughout the country, it would also reduce the level of emissions.
The development of shale gas creates real economic benefits and substantial. The argument that these benefits are a "bubble" political-economic certainly seem strange for Quebecers who moved to Alberta for work.
2. More than a million wells were drilled in North America and this is not an industry that lacks technical expertise or study. Is an established industry.
"The lessons from elsewhere" show that many thousands of wells are drilled each year in Canada as a safe and responsible environmental perspective. There is also a long history of oil and gas exploration in Quebec, with hundreds of exploration wells drilled by the Government of Quebec SOQUIP Shell, Bow Valley and others.
3. The authors suggest that the economic benefits associated with the development of shale gas in Quebec only extends to private companies. Jobs are a private benefit to the person who gets the job. The low price for natural gas is a private benefit to a homeowner who uses it. The rent for the temporary use of land is a private benefit to the farmer. The contracts for local firms is an advantage to these private companies. Access to gas on the south shore of the river is a private benefit to those who gain access. The oil and gas company is on average less than 10% return on its capital which is another advantage to private.
The taxes paid by workers and local businesses are also a public benefit. The duty on gas production are another public benefit. Property taxes on gas-related facilities are also a public benefit. Emissions are reduced another public benefit. Some believe that reducing energy imports is a public benefit.
4. The development of shale gas in North America is not a bubble. Several million dollars of investments have been made across Canada and the United States to develop a cleaner and more efficient source of energy. The shale gas is now about 15% - 20% of natural gas in North America. The lesson learned is that gas is cheaper than from an LNG terminal.
5. The sources of energy such as wind and biodiesel are expensive. The development of these energy sources is funded from money from taxpayers. Duty on natural gas would allow the government to grant subsidies for alternative energy.
6. We have invested time, effort and money to Quebec for twenty years. We are surprised that the environmentalists and sustainable development organizations do not applaud the government wants to move forward with a new hydrocarbon law. The filing of a modern law ahead of any development demonstrates the vision he showed.
7. The oil and gas company has drilled hundreds of wells in Quebec and operates from more than 30 years. Currently, each well requires several environmental permits. We have today a very clear understanding of the environmental impact.
8. We advocate transparency and communication with all stakeholders involved in this development. We would welcome the opportunity to meet with the signatories of this letter and any citizen wishing to discuss the facts contained in this letter.
9 & 10. A comprehensive energy strategy is essential for Quebec in order to effectively manage its abundant resources of natural gas. Even if it is an excellent source of clean renewable energy, hydropower can not meet the energy demands of the whole province. We believe that the gas shale of the Utica is an integral part of Quebec's energy strategy.
Michael Binnion, President and Chief
Questerre Energy
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