Development of natural gas resources could grow Quebec’s economy by $93 billion over 25 years

• Global demand for natural gas projected to increase 31.5 per cent by 2050

Montreal, May 21, 2026 – Given the present combination of strong global energy demand and record budget deficits, the Quebec government should seriously consider repealing its ban on hydrocarbon exploration and development in the province, advises the MEI in a report published this morning.

“Quebec possesses vast natural resources, but it has tied its own hands with a law that prohibits it from capitalizing on them,” says Gabriel Giguère, senior public policy analyst and author of the report. “While the rest of the world is looking to secure energy supplies from stable providers, our government does everything in its power to miss the boat.”

Both exploration and development of Quebec’s oil and gas deposits have been prohibited by provincial law since 2022. This law is part of a wider stance of hostility to the hydrocarbon sector that has persisted for nearly 15 years, a period that has witnessed successive moratoriums and an increasingly restrictive regulatory framework. Quebecers’ use of these energy sources remains widespread, nevertheless.

Strong demand and ample supply

Just under 40 per cent of the energy consumed in Quebec over the past twenty years has come from oil, with natural gas accounting for about another 15 per cent. Figures from recent years show that this proportion has remained stable.

Despite more than half of Quebec’s energy consumption being derived from hydrocarbons, the entirety of the province’s supply is still imported from either the United States or Western Canada.

Meanwhile, figures from the International Energy Agency project the global demands for natural gas and oil to rise by 31.5 and 12.8 per cent, respectively, by 2050.

“These are important indicators showing that demand remains strong and that Quebec could capitalize on this,” emphasises Giguère.

Economic benefits we simply can’t ignore

Development of Quebec’s natural gas resources alone could generate up to 230,000 person-jobs and contribute $93 billion to our economy over the next 25 years.

The hydrocarbon sector also stands out for generating jobs that pay well, with annual salaries averaging $155,067 in 2025, according to Statistics Canada. This is almost two and a half times the average salary in Quebec.

“With this law, the government is voluntarily giving up billions of dollars in tax revenue, not to mention the economic benefits and high-paying jobs that Quebecers could be enjoying,” points out Mr. Giguère. “As long as Quebec’s budget remains deeply in deficit, we can’t afford to turn our backs on such abundant sources of revenue.”

Approve the exploration and development of hydrocarbons

A large majority of Quebecers are in favour of developing oil and natural gas. A poll conducted in December of 2025 showed that 54 per cent of Quebecers support the development of oil resources, an increase of six percentage points compared with 2024, and exactly twice as many are in support as are in opposition (27 per cent).

Furthermore, Quebec’s new premier, Christine Fréchette, confirmed during the recent leadership campaign that she was open to authorizing natural gas development in Quebec.

Even more recently, an Angus Reid report highlighted that 61 per cent of Canadians view economic development as the top priority when it comes to energy policy.

To capitalize fully on natural gas and oil production, the MEI researcher states that the government must repeal the Act ending exploration for petroleum and underground reservoirs and production of petroleum and brine. Additionally, the government must reestablish a clear and predictable legal framework in order to attract private investment.

“We have the resources to meet the needs of multiple generations. We have a +-skilled workforce, growing global demand, and strong public support,” concluded Mr. Giguère. “All that’s missing is the political will to make the right choice for the economy, and for Quebecers, by repealing the hydrocarbons law.”

You can read the MEI Viewpoint by clicking here.

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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