Year: 2021-2022
In October 2021, Quebec Premier François Legault announced the end of hydrocarbon exploitation in Quebec. The Minister of Energy and Natural Resources, Jonatan Julien, argued that it would be irresponsible not to offer financial compensation to the affected companies, as they had invested in good faith under favorable legislation. Julien confirmed that his ministry was preparing a bill to ban hydrocarbon exploration and exploitation throughout Quebec, aligning with carbon neutrality goals by 2050 and promoting electric vehicles.
In December 2021, François Legault expressed his desire to minimize compensation to companies that had invested in hydrocarbon exploitation, despite his announcement to end this activity. Willing to bear the costs of legal proceedings, Legault insists on the need to manage this transition carefully so as not to deter future investments in other sectors.
The Quebec government moved towards ending hydrocarbon exploration and exploitation, making the province the first in North America to renounce this energy source in April 2022. The oil industry, represented by the Quebec Energy Association (AEQ), threatened to sue the government, deeming the proposed $100 million compensation insufficient compared to the over $500 million in investments.
In December 2022, the first hearing regarding the challenge to the law ending hydrocarbon exploration and exploitation in Quebec was held before the Quebec Superior Court. Eleven companies, including Utica Resources, are challenging the constitutionality of this law, seeking compensation, with Utica demanding $18 billion.
In February 2022, Éric Tétreault, spokesperson for the gas exploration industry in Quebec, advocated for shale gas exploitation to meet growing energy demand. He argued that renewable energies, such as wind and solar, could not be reliable solutions on their own.
In April 2022, Quebec passed a law ending hydrocarbon exploration and exploitation, with $100 million in compensation for the affected companies, far below the $500 million demanded.