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Background

Abundant, liquids-rich shale gas deposits hold the potential to renew the value-added chemistry sector in Canada and across North America. To realize this potential, both shale gas development and the market delivery of natural gas liquids – which the industry uses as a raw material – must proceed in a timely, cost-effective manner, and be carried out in a way that is consistent with societal expectations.

Historically, Canadian chemical manufacturers have benefited from the availability of abundant and affordable natural gas and crude oil, which are used as both a source of energy and as raw materials for manufacturing processes.  In recent years, however, concerns related to natural gas and crude oil price volatility and diminishing natural gas supply have undermined the competitive position of Canadian chemical manufacturers. As a result, new industry investments have been made in locations with more abundant or lower-priced gas reserves.

However, recent technological advances have led to spectacular growth in the amount of economically recoverable natural gas and natural gas liquids reserves in North America. These shale gas reserves could attract significant new investments to Canada – creating jobs, while boosting manufacturing and exports. They could also generate environmental improvements, as existing chemical manufacturing machinery and equipment is modernized or replaced.

For these reasons, the Chemistry Industry Association of Canada (CIAC) strongly supports the responsible development of both shale gas deposits and the infrastructure necessary to facilitate the use of shale gas in the value-added chemical manufacturing industry.

CIAC’s Position

CIAC strongly supports the responsible development and delivery of North American shale gas and natural gas liquids. Consistent with the Responsible Care® Ethic and Principles of Sustainability, the association also:

• Encourages government at all levels to develop and implement energy and related policies that will promote value-added chemical manufacturing in Canada;  
• Calls on Canadian governments at all levels to work cooperatively with stakeholders in Canada and the U.S. to promote evidence-based shale gas development and delivery policies, standards, and regulations which protect human health and the environment;
• Supports the public disclosure of information about the fracturing fluid additives used in shale gas development, and the public reporting of the environmental, social and economic performance of shale gas activities; and  
• Expects its member-companies to establish criteria for the selection and retention of any upstream business partners engaged in shale gas development and delivery; to promote awareness of Responsible Care principles and goals; and to encourage business partners to commit to continuous improvement.

This position statement will be reviewed regularly by CIAC and its membership, in consultation with its stakeholders.

Read the position statement in .PDF format