Exploiting Quebec’s untapped reserves
The least you can say about Michael Binnion, CEO of Calgary-based Questerre, is that he is a tenacious man. Binnion bought his first gas exploration license on Quebec territory 20 years ago. And here he is again, trying against all odds to convince Quebecers that exploiting the province’s vast natural gas resources is a good idea. Unfortunately, his probability of success is slim.
Questerre, a shale oil and gas producer, holds claims on large territories along the Saint Lawrence River, facing Trois-rivières, which lies atop the Utica shale formation. There was a time, not so long ago, when the Government of Quebec dreamt of the province becoming a major oil and gas producer. Even separatists were enthusiastic, seeing oil and gas revenues as the economic key to independence.
But a bit over a decade ago, the winds shifted. Concerns about climate change, along with fears over the risks of shale gas extraction, changed the province’s public opinion around. Ceding to popular pressure, the government, then led by Liberal premier Jean Charest, reluctantly declared a moratorium on all oil and gas exploration in the Saint Lawrence Valley. Exploration activity stopped dead in its tracks.
But Michael Binnion did not despair. As dependable as the Energizer Bunny, he persisted. He learned French. He repeatedly called Quebec journalists and columnists. He got appointed president of the Quebec Oil and Gas Association. And today, he is promoting a bold, new project.
His latest initiative is situated on the traditional lands of the Wolinak Abenakis, along the Becancour River. It would involve the extraction of natural gas with energy provided by Quebec’s clean hydroelectricity, and the recycling or sequestration of CO2 emissions from its consumption. Binnion asserts that this is “the world’s first zero-emissions natural gas production ... that will have a dramatic impact on the emissions from production.”
Questerre has signed an agreement with the Abenakis, which promises the 469-member First Nation a share of the jobs and of the potential revenues. Council Chief Michel Bernard said that the agreement “could bring prosperity to our nation and equality for our people, while protecting the environment.”
What is certain is that the agreement will annoy the provincial government. During last fall’s inaugural speech, Premier François Legault announced new legislation that will prohibit oil and gas exploration and production in the province. Quebec will offer some degree of compensation to the companies that have worked in the field for years, like Questerre. But the compensation likely will be judged inadequate, so we can expect a long legal fight.
Yet Binnion makes a good point when he says that, “It is not obvious why the Quebec government would be against a project with net-zero emissions, social acceptability and large economic benefits.” Moreover, as Chief Bernard says, “With the many tragic events in Quebec and Canada, we believe that reconciliation has to move beyond words and to real action.”
Sadly, logic has little to do with the popular sentiment against all oil and gas projects in Quebec. It is tempting to accuse Quebecers of hypocrisy, as their personal energy choices often seem to contradict their environmental positions. Since 1990, emissions from road transportation have jumped 60 per cent in Quebec, for example. How can you oppose oil production projects if you drive an SUV?
But public opinion, in Quebec as elsewhere, is not a black and white thing. There are contradictions, yes, but there are also explanations and many shades of grey. Quebec has never produced oil or gas; 95 per cent of the electricity production in the province comes from hydro power, the development of which has been a source of national pride.
Even though they put gasoline in the tank of their cars and some use natural gas for heating their homes and for cooking, in the eyes of Quebecers, oil and gas are “foreign” sources of energy. They do prefer Canadian oil to oil from other countries. But with climate change having become such a priority, their strong inclination is for no oil at all, as naive as this sounds.
Knowing Michael Binnion, none of this will discourage him. He will go on travelling between Montreal and Bécancour and Quebec City, knocking on the doors of politicians and bureaucrats, attempting to salvage the value of Questerre’s claims in the province.
“While we strongly believe our project is very beneficial to public utility, reconciliation, the global environment and the economic well-being of Quebecers, we still respect the prerogative of the government to decide on their behalf,” Binnion wrote recently. The fact is, however, that Quebec City has already decided, and I would not bet one share of Questerre — 32 cents as of this writing — on the chances of having that decision reversed.