The Montney Formation: Five Reasons Young Canadians Should Care

Canada needs natural gas. So does the rest of the world.

The Montney Formation can satisfy this demand with some of the world’s most sustainably produced and exported natural gas and LNG, while at the same time yielding jobs and prosperity for Canadians and respecting the traditional lands of Indigenous communities.

The Montney Formation – also called “the Montney” or “the Montney play” – is a trillion-dollar siltstone and shale deposit found in northeastern British Columbia and northwestern Alberta.

With minerals deposited at the time of the dinosaurs, the Montney has massive potential for natural gas and oil production. In fact, it’s estimated that the formation holds enough natural gas to supply Canada for the next 140 years!

Many young Canadians aren’t aware of the incredible potential the Montney holds. Here are five reasons you should support development of the Montney Formation:

Sustainability

Understandably, many young Canadians are concerned with the environmental impacts of oil and gas production. When it comes to the Montney, the ecological benefits of development far outweigh the drawbacks.

One worry with natural gas production is excess methane emission. Fortunately, natural gas found in the Montney is estimated to be considerably cleaner than that produced in other oil and gas producing countries like the United States. Industry and government (BC, Alberta, and federal) continue to work towards ambitious methane emission reduction targets – this includes the installation of better monitoring techniques and collaborative methane-related research projects.

The Montney also provides Canada with the opportunity to reduce global emissions.

Canadian-produced natural gas can help reduce reliance on coal in Asia and beyond. Because of Canada’s cold climate and the Montney’s proximity to the west coast, the export of liquified natural gas (LNG) to Asia and other Pacific-adjacent countries would be less carbon intensive than the extraction and burning of coal in those same countries.

Switching just 20% of Asia’s coal power to LNG would eliminate 680 million tonnes of C02 equivalent emissions each year.

Further, land reclamation continues to play a large role in Montney producers’ work. Land reclamation – the process of returning the land to its original form after using it for oil and gas production – is required by law in Canada. Efforts to remediate former oil and gas production sites have been carried out for years in the Montney and across western Canada.

Here are a few examples of land reclamation efforts in the Montney:

  • Shell helping to reclaim British Columbia’s caribou habitat
  • Highly concentrated well pads used by Seven Generations Energy and others to minimize deforestation and speed up remediation after production finishes
  • Tourmaline Oil participating in the Watercourse Crossing Program which helps restore disturbed fish habitats around production sites

Jobs

The Montney’s billions of barrels of oil and natural gas liquids aren’t going to extract themselves. The region – a 130,000 square kilometre area of hydrocarbon-dense rock encompassing the towns of Fort St. John, BC, Grande Prairie, Alberta, and others – is home to thousands of oil and gas-related workers.

As production in the Montney continues with key players constantly searching for new extraction sites, high-paying job opportunities for young people are plentiful throughout the region.

For example, you can expect to make upwards of $38/hour as an entry-level Floorhand at a drilling company in Dawson Creek, BC. This position requires no specific industry knowledge and offers opportunities for professional growth and development.

For young people with a few years of experience already under their belt, the earning potential is even higher. This position with Performance Energy Services, for example, offers an annual salary of up to $140,000 (plus benefits and per diem) to skilled cement workers in Fort St. John, BC.

Whether you’re fresh out of high school, a university student looking for a co-op, or a trade school graduate looking for an apprenticeship, the Montney Formation is a promising place to find high-paying jobs in the oil and gas sector.

Natural Gas for Canadians

Two thirds of Canadians use natural gas. Whether at home or in any of the stores, restaurants, or businesses we frequent, many Canadians rely on natural gas daily.

For electricity generation, each province varies regarding its reliance on natural gas. Some provinces, like Manitoba and Quebec, for example, use relatively little natural gas to power their electricity grids. Others, like Alberta, Saskatchewan, Nova Scotia, and Yukon, use a considerable amount of natural gas for electricity.

As governments look to enact policies that limit the effects of climate change, there has been a move to phase out coal-powered electricity generation and diesel usage in some provinces and territories.

In Alberta, the provincial government has committed to completely phasing out coal power. Natural gas will step up to fill this supply gap.

In Yukon, the government published a report over 10 years ago emphasizing the need for natural gas to offset the use of diesel generators.

Even Ontario, often thought to rely almost solely on hydro and nuclear power, accounts for a quarter of Canada’s natural gas usage. By volume, its usage is behind only Alberta.

The fact is this: Canadians need natural gas. And a lot of it – over four trillion cubic feet per year. Why not source it from the Montney, one of North America’s richest oil and gas deposits?

Global LNG Demand

The world needs Canadian LNG.

Canada has the potential to be a global leader in clean, responsible LNG export. With the LNG Canada project and Coastal GasLink pipeline both nearing completion, there will soon be a clear route for Montney-extracted natural gas to reach international markets.

Asia’s 4.7 billion people need natural gas. In fact, Asian LNG demand is forecasted to triple by 2030. Canadian LNG extracted from the Montney Formation’s rich natural gas reserves can fulfill that demand.

Exported LNG will inject billions of dollars into the Canadian economy while also helping to reduce global emissions and deliver needed energy to billions of people.

Not to mention, thousands of high-paying jobs in western Canada will be – and, in part, already have been – created in the Montney, along the pipeline, and in Kitimat at the export terminal to get Canadian LNG to market.

Through production in the ever-abundant Montney and export from the west coast, Canada can share clean, responsible LNG with the world.

Opportunities for Indigenous Communities

The areas from which natural gas is extracted have – for millennia – been the traditional lands of Indigenous Peoples.

The Montney Formation today exists on Treaty 8 territory and encompasses many First Nations, including the Blueberry River First Nation and the Doig River First Nation in BC.

The Montney holds incredible employment and benefit-sharing potential for these Indigenous communities. For example, the Blueberry River First Nation reached an agreement with the BC government at the beginning of 2023 regarding resource development in the Montney.

After a high-profile BC Supreme Court decision, the First Nation entered into an initial agreement with the provincial government that includes a new framework for resource-related land use and $87.5 million over the next three years as part of a revenue sharing agreement.

This deal represents a changing tide for Indigenous communities on and surrounding the Montney. Though Blueberry River is only one nation on Treaty 8 territory, they have paved the way for increased participation, collaboration, and benefits for all Indigenous communities in the area.

Today, government and industry are investing considerable time, capital, and resources into ensuring Indigenous communities benefit from Montney production. Further, agreements have been signed with all 20 First Nations along the route of the Coastal GasLink pipeline – jobs and prosperity stemming from Montney production extend across BC.

The Montney Formation can play a massive role in Canada’s energy future. It’s our job as young Canadians to realize its potential and share sustainably and responsibly produced Canadian natural gas with the world.

Aiden Gonsalves

Aiden Gonsalves is a JD candidate at the University of Calgary’s Faculty of Law. He holds a Bachelor’s Degree in Political Science and Professional Communications from the University of Victoria. Aiden is passionate about all things Canadian energy, with a specific interest in the intersection between energy, law, and public policy.
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