Although some parts of Canada have been tapped for many years for oil, Quebec has recently started to develop its oil industry. Companies like Cunningham Energy and Junex have been leading this development, exploring opportunities for oil and natural gas in the area.
Other areas in Canada such as Toronto have already developed their oil industries. In fact, Canada is the No. 5 country in the world in terms of oil production, producing about 4.4 million bbl per day. Currently, the province of Alberta contains most of Canada’s oil reserves and oil sands.
Reasons to develop the oil industry in Quebec
- Help eliminate concern over gas supplies
- Supplying jobs to build the economy
- Increase government budget through taxation – an estimated $45 billion over 30 years
- Increase investment opportunities in Quebec
Marzcorp and Cunningham Energy partnered together for a 935,090 acre project in Quebec, with Cunningham Energy LLC serving as the contract drilling partner for the project and Ryan Cunningham, principal and operating partner at Cunningham Energy serving as Marzcorp’s Chief Operating Officer. Together they are working towards developing this large prospect that could be the start of an oil future for Quebec.
The government of Quebec has also been helpful in developing the industry. The province has been trying to grow its oil industry since the 1980’s, and is willing to work with oil companies to get it started. In 2014, the government announced that it would create joint ventures help finance exploratory work. This includes a $115 million investment in early-stage drilling on Anticosti Island. In conjunction, they are completing a strategic environmental assessment to ensure safe practices and their ability to regulate and control oil companies in the area.
With government support and companies eager to get involved, the oil industry in Quebec has a lot of opportunity for growth. As the early stage phases of drilling begin, it will be interesting to see the true potential for the oil market in Quebec.