With the development of its hydro resources beginning in the middle of the last century, the Province of Québec became a Canadian energy powerhouse. Its strength is primarily in electricity production. This report focusses on an almost untapped, energy resource in Québec: oil and gas. Specifically, shale oil and shale gas from the Macasty and Utica basins. Until recently, shale resources were considered economically infeasible to develop, but advances in technology have made a number of oil and gas producers consider seriously Québec’s hydrocarbon potential.
Western Canada Natural Gas Forecasts and Impacts (2015-2035)
The Western Canada Natural Gas market provides significant economic benefits in terms of GDP contributions and job creation to Canada. Natural gas is produced mainly in British Columbia, Alberta and Saskatchewan. This study shows that over the next 20 years, this market will be affected by Liquefied Natural Gas (LNG) exports from Canada and the United States, as well as domestic production in the US.
Natural gas development and production will contribute $2,277 billion in GDP over the next 20 years, and create 10,240 thousand person years of employment. The annual GDP contribution is approximately $114 billion. The number of jobs generated by this sector will rise from approximate 248,000 in 2015 to 649,000 in 2035
LNG Liquefaction for the Asia-Pacific Market: Canada's Place in a Global Game
The study assesses the supply and demand balance for LNG in the Asia-Pacific region. The demand for natural gas in growing Asian economies can be provided from regions around the world, Canada being one of them. Cost competitiveness is crucial if new liquefaction projects are to be built. Investors must consider the capital cost of the projects, accessibility of the natural gas resource and the transportation costs from the liquefaction plant to the regasification facility. When all these factors are considered, Canada’s West Coast project proposals are in line with the normal costs experienced globally, and lower than the Sabine Pass facility located on the US Gulf Coast.
For a generic LNG project proposal on the British Columbia coast, the study found:
1. Capital costs of approximately $865/tonne of capacity.
2. Delivered cost to Japan of approximately $11.20 per million cubic feet of natural gas.
3. BC LNG projects are viable in the Japanese market at their landed oil index price of $70/barrel.
Process Efficiencies of Unconventional Oil and Gas
The Oil and Gas sector in Canada provides considerable economic benefits. However, production activities are costly and impact the environment. CERI has completed an assessment of various options to make these upstream activities more efficient. These process improvements could reduce cost and could reduce water use and greenhouse gas emissions.
As the sector continues to grow, in particular in Western Canada, there is an increased need for production processes to become more efficient. This study looks at several options including:
· A mechanical lift strategy for in situ production that could reduce energy losses by 24% · Modular construction techniques in SAGD operations that can reduce capital costs by over 50% · Paraffinic froth treatment which can reduce greenhouse gas emissions by 15% in oil sands mining and upgrading
Overall, there are many existing ways to increase the efficiency of upstream oil and gas production through best practices, although these gains are small in comparison to the increase in environmental impacts associated with sector growth. To offset impacts associated with sector growth the industry will have to explore larger scale technology changes.
Economic Impacts of Natural Gas Development within the Yukon Territory
CERI completed a report on the Economic Impacts of Natural Gas Development within the Yukon Territory. This study has two aims: to describe the conventional natural gas resource in Yukon and to consider the potential of conventional natural gas production and infrastructure development in the territory. Unconventional resources are not considered in the report, nor is hydraulic fracturing. The report includes two development scenarios. Scenario 1 considers a domestic pipeline option. This pipeline would be constructed and operated over the 2017-2041 timeline. Under this scenario, there is an increase in GDP for Yukon of $875 million and for Canada of $10.5 billion. Scenario 2 offers a domestic and export pipeline option over the same period. This scenario includes gas service to a mine site and an LNG facility. Under this scenario, there is an increase in GDP for Yukon of $2.7 billion and for Canada of $32.8 billion.