In April, Quebec’s National Assembly passed their controversial Bill 21, aimed at ending oil and gas exploration and production in the province. This comes after years of moratoriums practically stopped any progress being made. Quebec is also now being sued for $18 billion in compensation by Utica Resources over the defacto expropriation of their assets. This is not the first time Quebec has been under fire for its reckless policies. In 2011, US-based Forest Oil (Lone Pine Resources) launched a North American Free Trade Agreement challenge over Quebec’s expropriation and moratorium on natural gas production.
Here are 5 things you should know about Quebec’s oil and gas ban.
- Quebec enticed companies from western Canada to explore for oil and gas in the Province through the 1990’s and 2000’s only to change the rules of the game for outside companies after a giant discovery was made that would reduce local energy costs.
https://financialpost.com/commodities/energy/how-anticosti-is-bringing-quebec-oil-and-gas-investment-back-from-the-dead - Quebec imports more oil and gas than any other province from countries with lower environmental standards than Alberta. Quebec is the 2nd largest consumer of refined petroleum products including jet fuel used for those flights.
https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2019/market-snapshot-quebecs-gasoline-market-is-one-largest-in-canada.html - While Quebec imports high emissions from foreign oil and gas they are contemplating banning zero emissions natural gas development locally. Quebec may be the least responsible province in Canada on emissions performance
https://www.lapresse.ca/actualites/environnement/2021-09-15/hydrocarbures/quebec-va-fermer-les-livres.php - By importing 100% of its natural gas, Quebec will create 3x more emissions than producing it locally with carbon tech.
https://www.lapresse.ca/actualites/politique/2022-02-02/projet-de-loi-sur-la-fin-des-hydrocarbures/au-moins-500-millions-demandes-par-l-industrie.php - Developing local gas would reduce transfer payments for Quebec since oil and gas are included in equalization but hydro is not.
https://www.theglobeandmail.com/business/article-it-could-be-politically-perilous-to-tweak-the-equalization-formula-to/
