OTTAWA, Dec. 17, 2012 /CNW/ - Although Quebec will benefit from
investment in natural gas in Western Canada, its potential development
of shale gas remains speculative and dependent on the regulatory
environment in the province, according to a Conference Board of Canada
report released today.
"Clearly, the natural gas industry contributes to Canada's economy and
to the economy of each province," said Pedro Antunes, Director,
National and Provincial Forecast. "While the benefits are most
concentrated where natural gas is produced, growth brings gains in
manufacturing, construction and services industries in all provinces."
"The investments presented for Quebec should be considered highly
speculative. A more positive outlook for development of Quebec's shale
gas is certainly possible, as is a continuation of the current
situation with no drilling permitted."
The upstream investments for Quebec reflect the potential in the
province for shale gas development. Although there is currently a
moratorium on shale gas drilling, the industry and government are
working together to engage stakeholders to determine whether
regulations can be crafted to allow development to proceed.
Overall, the Conference Board's assumptions for Quebec investment are
uncertain. The investments assume a ramp-up to 70 wells per year by
2020 that collectively would satisfy about half of Quebec's natural gas
To date, only 10 wells have been drilled in Quebec to test the prospects
of shale gas production. Only a couple of production tests are
available from which to form judgments about future well performance.
And there are no wells with a production history.
All provinces will benefit from the investment occurring across the
country, with Ontario and Quebec receiving a greater share of
supply-chain impacts. An important share of the investment in
natural-gas-producing provinces will result in purchases of goods and
services from other jurisdictions.
Natural gas investments will create roughly 199,000 person-years of
employment in Quebec over the 24 year period. While only $11 billion
(2012 dollars) of the direct investments will occur in Quebec, the
province will see real GDP increase by a cumulative $17 billion.
In all, new investment and increased production will add $940 billion
(2012 dollars) to Canada's economy between 2012 and 2035. The industry
is expected to generate roughly 6.2 million person-years of employment.
In other words, the industry is expected to support employment of
nearly 260,000 persons per year over the 24-year forecast horizon.
The report, The Role of Natural Gas in Powering Canada's Economy, was funded by the Canadian Natural Gas Initiative. The publication is
publicly available at the Conference Board's e-library.
SOURCE: Conference Board of Canada
For further information:
Link to publication: http://www.conferenceboard.ca/e-library/abstract.aspx?did=5251
FOR MORE INFORMATION:
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448