Energy expert questions shale gas development

An energy sector observer says he's not sure New Brunswick is heading in the right direction when it comes to developinga shale gas industry.

Thomas Homer-Dixon, the director of the Waterloo Institute for Complexity and Innovation at the University of Waterloo,contendsthe provincial governmentshouldn't depend too much on shale gas.

"Some recent analysis I've seen suggests that shale gas availability it may change things for a decade, maybe 15 years, but over the long term we're going to remain in a situation where at least in North America natural gas may actually be reasonably scarce, although we can get it overseas in terms of liquefied natural gas," he said.

"So I'm not sure that New Brunswick should be making a major permanent commitment in this area."

Homer-Dixon is speaking at the University of New Brunswick in Fredericton on Tuesday night about the transition Canada has to make to an energy economy that's based on renewable resources rather than carbon sources, such as natural gas and oil. He said hebelieves the future will include wind, solar and nuclear and deep geo-thermal energy sources.

Still, he said heisn't completely against Premier David Alward's goal of using apipeline to bring in heavy oilfrom Alberta because, he says, that would increase Canada's overall energy security.

"I'm very keen on creating greater Canadian energy independence by sharing energy resources across the country and one of the problems is that eastern Canada remains enormously dependent on imported oil," said Homer-Dixon.

He is also the Centre for International Governance Innovation Campus chair of global systems at the Balsillie School of International Affairs in Waterloo.

"Bringing some of the heavy oil from western Canada to eastern Canada would help resolve that dependency," he said.

Former Liberal premier Frank McKennahassaid developing the shale gas industry could generate more than $7 billion in royalties and tax revenues, which would end the province's debt and deficit problems.

The Opposition Liberals havecalled for a moratoriumon shale gas.

Opponents have raised concerns about the impact the hydraulic-fracturing process, commonly known as hydro-fracking, would have on water supplies.

The processinvolves companies injecting a mixture of water, sand and chemicals into the ground, creating cracks in shale rock formations, enabling them to extract natural gas from areas that would otherwise go untapped.

Last month, provincialofficialsunveiled new rulesgoverning the oil and gas industry, saying they will be among the strictest in North America.