If you live in New Brunswick, you know the province faces steep financial hurdles. Now, more than a decade after shale gas extraction sparked massive protests, the Holt Liberals are looking at it as a financial lifeline. The government recently launched a five month review of the hydraulic fracturing moratorium. According to a recent report by CBC News, this review explores whether the rewards outweigh the well documented risks.

The Financial Reality

New Brunswick faces a projected 1.7 billion deficit this year. Finance Minister René Legacy recently highlighted 108.1 million in healthcare overspending and 123.2 million in unforeseen social services expenses. The government refuses to cut this essential funding. “We have to provide that help,” Legacy said. With deep cuts off the table, shale gas revenue offers a tempting alternative.

Weighing the Risks and Rewards

The political risks are high. In 2013, the Progressive Conservative government faced major protests over gas exploration and eventually lost reelection. Today, the Holt government insists safety comes first. Natural Resources Minister John Herron stated the government must be certain the process is safe, or “it wouldn’t be done at all.” He also highlighted the potential benefits. “How much would it help us to fund what we all need, like collaborative health care clinics in your communities or better health care access or help in paying the bills?” Herron asked. A 2014 economic study estimated that 150 to 200 gas wells produce hundreds of millions in tax revenue. Adjusted for inflation, that equals 348 million to 478 million today.

Industry Demands and Energy Sovereignty

Extracting gas must make financial sense for private companies. Natural gas trader Todd McDonald noted that higher gas prices today make the return on investment much easier. However, companies require guarantees. They want assurance that future governments will not reverse course and that Indigenous consultation is fully resolved. They also expect financial incentives during the startup phase. “You’re going to have to sell them on coming here,” McDonald said. Domestic gas also protects New Brunswick from international trade disputes. With provincial approval secured for NB Power’s natural gas generating station in Tantramar, a local gas supply lowers costs and reduces reliance on United States pipelines. Premier Susan Holt emphasized this point. “As trade with our closest neighbour is thrown into question yet again, now is the time to secure our autonomy and protect our sovereignty,” Holt said.

Frequently Asked Questions

When will the shale gas review be completed?

The provincial government will complete the review and announce the results in January.

How much money does shale gas generate for New Brunswick?

Adjusted for inflation, a 2014 study estimated that 150 to 200 gas wells produce between 348 million and 478 million in tax revenue.

Why is the government considering lifting the moratorium now?

New Brunswick faces a 1.7 billion deficit. The government needs new revenue sources to fund essential healthcare and social services without making deep budget cuts.

How does local shale gas affect the Tantramar power plant?

A local gas supply provides cheaper fuel for the planned Tantramar generating station and protects the province from potential United States tariffs.