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Quebec Pulls Trigger & Commits Energy Suicide – Bans All O&G Prod.

In the end, we didn’t think they would actually do it–but they did. The province of Quebec, Canada, with a huge supply of Utica Shale gas sitting beneath it, has just passed a new law outlawing all oil and natural gas production throughout the province. It is a breathtaking grab of totalitarian power. It’s also energy suicide. Quebec says it will pay a piddly $79.5 million (US) to expropriate the oil and gas drilling rights of companies owning those rights in the province. We’ve seen estimates that those rights are worth more than $5 billion. Questerre Energy, which owns more than 1 million acres of leases and an estimated 6 Tcf of Utica Shale reserves in the province, is considering its next legal move.
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Questerre Studying Alternative to Fracking in Quebec Utica

click for larger version

You have to hand it to Canada-based Questerre Energy Corporation, they are doing everything they possibly can to clear a path for drilling on their extensive Utica Shale acreage located in the province of Quebec, Canada. (Yes, there is Utica Shale in Canada!) Questerre’s latest effort is to study alternative completion techniques to fracking. As you likely know, fracking involves using underground explosives to blow holes/cracks into the surrounding shale rock layer, allowing trapped gas (and oil) to escape. What if you could use existing cracks without blowing holes and creating new cracks?
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Canada’s Indian Resource Council Supports Quebec Utica Drilling

This is getting interesting. Last week MDN told you that Canadian driller Questerre Energy has found a way to fight back against Quebec, Canada’s insane, irrational plan to outlaw all oil and gas drilling–including drilling in the province’s Utica Shale layer–by forming an alliance with a local Indian tribe to drill on Indian land (see Questerre Finds Way to Circumvent Quebec’s Utica Drilling Ban). Less than a week later, the Indian Resource Council of Canada (IRC), an organization representing more than 130 First Nations (Indian tribes) across the country that produce energy or have direct interests in the energy industry, has joined the fight in support of Questerre. It has set up a battle between Quebec and the country’s First Nations.
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Questerre Finds Way to Circumvent Quebec’s Utica Drilling Ban

This is quite clever. Last October the province of Quebec, Canada announced it will expropriate all of the rights for all oil and gas companies in the province to drill and extract oil and natural gas (see Lights Out for All O&G Production in Quebec, Including Utica Shale). It’s all being shut down–including actively producing wells. Questerre Energy Corp., which owns more than one million acres of Utica Shale leases in Quebec, may have just found a way around Quebec’s oil and gas drilling ban.
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Quebec to Pay “Significantly More” than $5B to Jilted Utica Drillers

In October the province of Quebec, Canada announced it will expropriate all of the rights for all oil and gas companies in the province to drill and extract oil and natural gas (see Lights Out for All O&G Production in Quebec, Including Utica Shale). It’s all being shut down–including actively producing wells. Shutting down existing businesses in the province is something you might expect in Communist China, or Soviet Russia, or tin-horn dictatorships in South America. It’s not something you expect to see in Western democracies. Yet it’s happening in Quebec, home to a large deposit of the Utica Shale. Now Quebec drillers, those who had planned to tap their vast Utica Shale assets, are demanding Quebec pay up, and the price will be “significantly more” than the $3 billion to $5 billion floated by the province’s energy association.
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Lights Out for All O&G Production in Quebec, Including Utica Shale

For years Canadian company Questerre Energy patiently waited to begin drilling on their extensive Utica Shale acreage in the St. Lawrence Lowlands of Quebec, Canada. Quebec has been like New York–completely closed to the oil and gas industry, particularly shale and fracking (see Quebec to Ban Utica Shale Drilling, Most Other Drilling Too). And yet Questerre kept trying. As recently as March of this year the company touted hydrogen (from natural gas) as the reason they should be allowed to drill in the Utica Shale (see Questerre Still Trying to Convince Quebec to Let Them Drill Utica). All hope is now gone. Three weeks ago Quebec announced it will expropriate all of the rights for all oil and gas companies in the province to drill and extract oil and natural gas. It’s all being shut down–including actively producing wells.
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Questerre Still Trying to Convince Quebec to Let Them Drill Utica

You have to admire Canadian driller Questerre Energy–they never give up. Questerre has patiently waited for years to begin drilling on their extensive Utica Shale acreage in the St. Lawrence Lowlands of Quebec, Canada. Quebec is like New York–completely closed to the oil and gas industry, particularly shale and fracking (see Quebec to Ban Utica Shale Drilling, Most Other Drilling Too). And yet Questerre keeps trying. Now the company is touting hydrogen (from natural gas) as the reason they should be allowed to drill in the Utica. Will this new argument work?
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Questerre Energy Closes on Deal to Buy 753K Utica Acres in Quebec

Utica Shale in Quebec – click for larger version

Last March MDN told you that Questerre Energy, a Canadian driller who has patiently waited for years to begin drilling on their extensive Utica Shale acreage in the St. Lawrence Lowlands of Quebec, Canada, had hammered out an agreement with joint venture partner Repsol to buy out Repsol’s ownership interest in 753,000 Utica acres (see Questerre Energy Picks Up Another 753K Utica Acres in Quebec). The deal is now, finally, done. The question is: Will Questerre ever get to drill on their acreage?
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Questerre Keeps Pushing to Drill in Quebec Utica, Despite Ban

You gotta give Questerre Energy Corporation credit–they keep trying, even in the face of total opposition. Questerre, a Canadian driller, has patiently waited for years to begin drilling on their extensive Utica acreage in the St. Lawrence Lowlands of Quebec–even though last year Quebec all but permanently banned such drilling (see Quebec to Ban Utica Shale Drilling, Most Other Drilling Too).
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Questerre Energy Picks Up Another 753K Utica Acres in Quebec

Utica shale in Quebec – click for larger version

Last year the Canadian province of Quebec decided to ban pretty much all oil and gas drilling (see Quebec to Ban Utica Shale Drilling, Most Other Drilling Too). The ban hits Questerre Energy, a Canadian driller who has patiently waited for years to begin drilling on their extensive Utica acreage in the St. Lawrence Lowlands of Quebec, the hardest. Yet even with the ban Questerre continues to buy more Utica acreage.
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Questerre Energy to Challenge Quebec’s Utica Frack Ban in Court

The Utica Shale, which underlies much of the Marcellus Shale, also underlies part of Canada’s Quebec province. From time to time we highlight news concerning the Utica in Canada. There hasn’t been much news to highlight over the years since Quebec has had a moratorium on fracking since 2012. But as we reported in December 2016, something of a minor miracle happened–the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan” (see Fracking in Canadian Utica Shale Takes Big Step Closer to Reality). The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Then in September 2017, Quebec did the unthinkable (for radical environmentalists)–they published draft Utica drilling regulations (see Quebec Government Publishes Draft Utica Fracking Regulations). Canadian driller Questerre believes Utica drilling can begin this year (see Questerre Plans 8 Initial Well Pads in Canadian Utica 2018-2019). News of new Utica regs caused antis in Canada to go berserk. The pressure got to be too much and the politicians decided in June of this year that they will commit fracking suicide instead (see Quebec to Ban Utica Shale Drilling, Most Other Drilling Too). Questerre isn’t taking it lying down. They have considerable acreage in the Quebec’s Utica. Questerre issued a press release this morning to celebrate Bill 106 (passed in 2016) finally going into effect–and to say as for the frack ban, Questerre will sue the government as soon as it’s implemented, to try and get it overturned…
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Canadian Antis Threaten to “Defend” Against Quebec Utica Drilling

Advocating for anarchy (a doing away of laws and letting the mob rule) is not unique to radical environmentalists in the United States. Such anarchy is alive and well in the Canadian environmental movement too. The Utica Shale, which underlies much of the Marcellus Shale, also underlies part of Canada’s Quebec province. From time to time we highlight news concerning the Utica in Canada. There hasn’t been much news to highlight over the years since Quebec has had a moratorium on fracking since 2012. But as we reported in December 2016, something of a minor miracle happened–the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan” (see Fracking in Canadian Utica Shale Takes Big Step Closer to Reality). The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Then in September, Quebec did the unthinkable (for radical environmentalists)–they published draft Utica drilling regulations (see Quebec Government Publishes Draft Utica Fracking Regulations). Canadian driller Questerre believes Utica drilling can begin sometime next year (see Questerre Plans 8 Initial Well Pads in Canadian Utica 2018-2019). That news has antis in Canada going berserk. They’re now threatening that “the public will defend itself” if drilling is allowed. What do they mean by that? Sure sounds like a threat to us…
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Questerre Plans 8 Initial Well Pads in Canadian Utica 2018-2019

Although the primary focus of Marcellus Drilling News has always been on Marcellus and Utica Shale gas (and oil) as found in the northeastern U.S., the Utica Shale also underlies part of Canada’s Quebec province. From time to time we highlight news concerning the Utica in Canada. There hasn’t been much news to highlight over the years since Quebec has had a moratorium on fracking at least as long as New York’s moratorium (now at 9 years and 9 months and counting). But as we reported in December 2016, something of a minor miracle happened–the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan” (see Fracking in Canadian Utica Shale Takes Big Step Closer to Reality). The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Fracking will not begin immediately. The bill does, however, mean that new regulations will come along in 2017 and after that, it’s an almost certainty that fracking will begin. Those draft rules were finally been released in September of this year (see Quebec Government Publishes Draft Utica Fracking Regulations). Questerre Energy, which owns Canadian Utica leases in Quebec and has long lobbied get the government to allow Utica drilling. In Questerre’s recently-released third quarter 2017 update we get an update on their plans to drill in the Canadian Utica. The company says if progress continues with the draft regulations, they have eight well pad sites picked out where they will drill first–in locations that have been oil and gas friendly in the past…
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Questerre Ups Proved Reserves to 5.8 Tcfe in Quebec Utica

Little known fact: There is a Utica Shale layer in Canada–along the St. Lawrence River Valley–in the Province of Quebec. On and off over the years we’ve mentioned it, largely in connection with an ongoing moratorium on shale drilling in Quebec (see our stories here). Quebec’s moratorium is similar to the moratorium on shale drilling in New York State–that is, a total block, but not a permanent block. After debating an environmental bill in December, the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan.” The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Fracking will not begin immediately. The bill does, however, mean that new regulations will come along early this year and after that, it’s an almost certainty that fracking will begin, in 2017, in the Canadian Utica. The main beneficiary if Questerre Energy Corporation, which owns ~350,000 acres in the Quebec Utica. Of that, Questerre is considering (for now) drilling on 36,000 acres. Given that drilling is likely to begin soon, Questerre recently commissioned an update of their proven reserves in the Quebec Utica. The last time they did so was in 2010. What did the new study find? Questerre is sitting on 5.8 trillion cubic feet equivalent (Tcfe) of oil and gas, representing some 965 million barrels of oil, a 30% increase over the numbers from 2010…
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Questerre Gets $26.5M Loan for Drilling, Still Hopeful for Utica

Canadian driller Questerre Energy has just secured a $26.5 million line of credit with an unidentified Canadian bank which they plan to use for shale drilling operations. One of those operations they dearly want to use it for is drilling in the Canadian Utica Shale–a portion of the Utica which lies under Quebec. If only the Quebec government would just allow it. Like New York State, Quebec has had a moratorium on fracking in the province for a number of years now. At various points Questerre has been critical in chiding the Quebec government (see Questerre Energy Points Out Quebec’s Hypocrisy on Fracking), and more subdued and hopeful in their tone (see Questerre Energy Hopeful Quebec will Lift Fracking Moratorium).

The latest announcement from Questerre once again strikes the more subdued and hopeful tone…
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Questerre Energy Hopeful Quebec will Lift Fracking Moratorium

An ongoing story of interest to MDN is the fracking moratorium in Quebec, Canada. It’s interesting to MDN because part of the Utica Shale underlies Quebec province. As we’ve previously reported, Quebec has a moratorium in place similar to New York State. It seemed for a time like the moratorium would become more or less permanent after statements by representatives of the newly elected government in Quebec, a fact bemoaned by Canadian driller Questerre Energy (see this MDN story).

Questerre issued another press release today on a more encouraging note, pointing out the Premier of Quebec, Pauline Marois, says she will make the final decision about lifting the moratorium and that she’ll use the results of the study under way to make her decision. Questerre takes her comments as a positive sign that science, and not politics, will determine a favorable (pro-fracking) outcome.

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