New York Times journalist and energy specialist, Jad Mouawad, stated in a recent article that the current energy context favours the use of natural gas. In effect, the stability of its pricing and the diversification of its sources – notably through shale gas development – plays in its favour.

Growing preoccupations regarding nuclear energy, the moratorium on development in the Gulf of Mexico following the oil spill of 2010, and the environmental record of coal power plants currently make natural gas the energy source with the best potential for growth.

According to Mouawad, with world energy demand expected to continue to grow in the next decades, analysts expect a new boom in gas consumption. He quotes Lawrence J. Goldstein, an economist at the Energy Policy Research Foundation as saying that “at the end of the day, when you look at the risk-reward equation, natural gas comes out as a winner. It’s a technical knockout.”

The complete article is available on the New York Times website.

In an article posted on the website of the TV channel Argent on February 28, 2011, Pierre-Olivier Pineau, a professor at HEC Montréal and an expert on sustainable development issues, is reported to state that in his opinion, the shale gas industry has been “unfairly demonized,” and BAPE should give a conditional green light to development of this resource.

Pineau is opposed to the moratorium, believing that shale gas mining is feasible, so long as regulations are enforced.

The article also reports that Pineau feels it would be a mistake to pass up the opportunity presented by this type of energy when public finances are being weakened by an aging population. While he doesn’t agree with those who describe it as a cash pipeline, Pineau believes the industry could provide $200 million a year to the government in royalties in addition to the creation of new jobs and the indirect returns from exploration and mining.

An article published by The Financial Post on January 13th 2011 outlines the remarkable benefits the United States could gain through an increase of that country’s production of shale gas:

• reduced dependency on foreign gas imports
• deficit reduction
• reduced greenhouse gas emissions.

Christopher Swann, journalist for the Reuters news agency and author of this article published by The Financial Post states that shale gas is a veritable lifesaver and lists the advantages the country of Uncle Sam could gain from increased local production and use of the resource. He compares reserves in the U.S. to Iran’s oil potential. Swann asks why the United States shouldn’t profit from the wealth it’s literally sitting on:

“America’s natural gas bonanza is too good an opportunity to miss. The new Congress needs to embrace the bounty beneath its feet.”

We’re reminded of the situation here in Quebec, a province that also possesses huge shale gas potential. The local development of this resource would bring the same kind of irrefutable benefits to both the United States and Quebec. Consult the Advantages for Quebec section of our website to learn more.

Christopher  Swann is an economic columnist specialising in the energy sector. He has worked for The Financial Times and Bloomberg.

We invite you to consult Christopher Swann’s full article on The Financial Post website.

You can read other articles by the same author below:

N. America’s gas drilling frenzy won’t end in 2011

U.S. Nuclear hopes choked by low emission costs

As Mayor of Trois-Rivières, Yves Levesque doesn’t mince words when he says that he supports shale gas development in his municipality. In a recent interview with Le Nouvelliste, Mayor Levesque says that he sees shale gas as an economic boon for the city, imagining what his council could do for Trois-Rivière citizens with the millions of dollars which could potentially roll in through the activities of QOGA members like Talisman. Talisman recently paid the city $192 000 for a 30-day exploration exercise.

Mayor Levesque made these statements in an interview with Le Nouvelliste published on December 8th. The full Le Nouvelliste article is available online.

The BAPE hearings continued last week with the presentation of briefs by the industry, by municipalities, by scientific experts and by community groups. QOGA and its members were on hand to speak to the advantages of shale gas development in Quebec. Our goal at these hearings was to show that shale gas development in Quebec is not only sound from an economic point of view, but from an environmental and public security point of view as well.

We’d invite you to consult our QOGA brief available online and through our links page.

The report which will be produced by the BAPE within 4 months of the hearings will inform the Minister’s recommendation to Cabinet, who will decide whether or not to authorize shale gas exploration in the province. Once that is done, we’re hoping to be able to continue our testing in order to confirm the feasibility of shale gas development in Quebec. We respect and understand the importance of the BAPE hearings, and look forward to its report.