End of hydrocarbon exploitation | Expropriate Quebec’s growth

We read with interest the editorial by Philippe Mercure entitled “The CAQ is on the right side of the energy transition”, published on March 29⁠1. We enthusiastically support the efforts of the Quebec government to develop a sector around the electric battery.

Posted at 2:00 p.m.

Mario Levesque

Mario Levesque
President and CEO, Utica Resources

This adventure is similar to that of natural gas 20 years ago, when the government of the time enthusiastically invited investors. Today, when the industry is ready to launch production, the new Bill 21, currently under consideration, will brutally and unilaterally expropriate these investors.

We learned this week that Ontario is taking the lead in the investment race to create an electric battery manufacturing sector. In Quebec, it is on the extraction of mineral resources that the activities of this sector will focus, according to Minister Pierre Fitzgibbon himself. We support the notion of resource development, but it must be remembered that mining production will face the same issues that natural gas has for years – logistical and technical challenges, financing, social acceptability. Who can guarantee that the same fate, an abandonment on the part of the government, does not await investors?

Natural gas and mineral resources: complementary and essential

It seems that the choice of the battery is perceived by the government as incompatible with the development of Quebec’s natural gas resources. Nothing could be further from the truth.

With known reserves of natural gas, Quebec could supply all of Quebecers’ needs in addition to export possibilities, particularly in Europe, which is looking for alternatives to Russian gas.

If the CAQ estimates the spinoffs from the battery industry at approximately $18 billion and considers them essential to Quebec’s prosperity, why not consider the hundreds of billions that the exploitation of Quebec’s natural gas would provide us in the medium term?2. These benefits could meet the needs of our population, including the wealth gap between Quebec and Ontario, a key objective of the CAQ. Government revenue from royalties and taxes will also allow it to finance the development of the battery sector and public services.

Arbitrarily expropriate growth

During an interrogation a few months before proposing the banishment of the industry, Minister Jonatan Julien affirmed, under oath, to be in favor of the exploitation of hydrocarbons in Quebec. He said that as long as the projects complied, they would be allowed. “I just want to be clear on one thing, I am Minister of Energy and Natural Resources, and there is no claim that I am not in favor of the exploitation of hydrocarbons in Quebec. »

For his part, Prime Minister François Legault wrote in his book Heading for a winning Quebec “Quebecers have a duty to explore and extract these hydrocarbons to reduce their dependence on foreign oil and to ensure their future well-being. Today, Quebecers continue to consume the equivalent of over $15 billion a year in imported hydrocarbons. The transition is estimated at at least thirty years in the strategic plan of Hydro-Quebec tabled last week.

Should we continue to buy the resources we have from outside and drive out investors through expropriations?

The world of energy is made up of several sectors, all interrelated (hydroelectricity, hydrocarbons, wind power, hydrogen, etc.). We must aim for the right balance between these forms of energy. Quebecers, in many polls published in recent months, say they are largely in favor of the development of our resources. The government should listen to the population and promote our economy, while respecting the environment.


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