Monday, July 4th, 2011


July 1, 2011 article in the Financial Post reports industry determined to profit from fracking:


Calgary-based Questerre Energy Corp., worth $800-million only a year ago, has a market capitalization barely one fourth of that today as investors cashed out following the Quebec government’s decision in March to put commercial hydraulic fracturing drilling on hold pending a detailed environmental review.

… But those ready to write off the shale gas industry in Quebec would be sorely mistaken. What were once big dreams for striking a profit payload in the province are far from being dashed.

… For Questerre, Quebec’s decision forced a brutal reckoning. The company holds development rights to more than one million gross acres of farmland along the southern flank of the St. Lawrence River in Quebec, smack in the middle of what has become known as the Utica shale gas formation. It estimates its property could yield a prospective recoverable resource of 18 trillion cubic feet. Its entire business plan was focused on developing Quebec gas.

… For prospectors such as Questerre, selling Quebecers on the safety of shale gas has proven to be tougher than anyone had imagined. The government gave the industry an initial green light for exploration without having in place a detailed regulatory framework to oversee it. And the companies have since failed to properly explain the process, called “fracking,” and its benefits and risks to average people.

… Shale gas is extracted from the rock below by injecting millions of gallons of water, sand and chemicals at high pressure through a well to prop open cracks, allowing the gas to flow out. The biggest concern is the environmental impact on the fresh water, before and after it is used.

… When officials with the Quebec Oil and Gas Association met with farmers and other local residents last fall to explain their plans and address concerns, they were frequently shouted down with chants of “We don’t want your gaz de shit!,” a play on the French phrase for shale gas, gaz de schiste. The association has since hired former Quebec premier Lucien Bouchard as its chairman to rescue the vilified sector.

… Popular support for fracking is the lowest in Quebec of all Canadian provinces at 22%, according to a presentation on emerging energy issues this month by polling firm Angus Reid. That’s less than half the 46% support it enjoys in Alberta. The national average is 31%, Angus Reid found in a June survey of 1,007 Canadians.

… Quebec has now decided it will not approve shale gas development until it’s proven safe by independent study. A panel of 11 experts has been mandated to undertake a strategic environmental assessment expected to take between two and three years.

… In the meantime, the province has cancelled exploration permits without compensation and issued a new set of regulations to govern shale gas development.

Full article:
http://business.financialpost.com/2011/07/01/quebec-moratorium-leaves-shale-gas-drillers-staggering/

The Council of Canadians’ position is clear: No Fracking Way! www.canadians.org/fracking