A report by advisory firm Secor says Quebec's controversial shale gas industry could generate between 5,000 and 19,000 jobs and more than $1 billion in annual royalties for the province.

The study conducted on behalf of the Quebec Oil and Gas Association estimates each gas well on Quebec's Utica shale formation would generate $1.85 million in value added to Quebec and some 33 jobs annually during the drilling phase.

Public hearings into the future of the shale gas industry in Quebec continue in Saint-Hyacinthe this week. (CBC)

However, the report released late Thursday by Secor partner Daniel Denis says the production phase of a well, which stretches over 50 years, would create relatively few jobs — 28 per 100 wells in production.

The report says royalties are the bigger benefit to the province during the production phase and at a rate of 10 per cent, each well could generate $150,000 for Quebec each year.

"At this stage we cannot predict the level of industry development, as the potential in Quebec is not sufficiently characterized," the firm added in the report.

Quebec has vast reserves of natural gas trapped in the rock beneath the St. Lawrence River lowlands, and environmental hearings on the gas exploration plans are taking place this week.

The hearings are examining the risks of tapping an energy source one federal document has called an energy "game changer." Natural gas is becoming increasingly popular as the price of oil climbs and the U.S. and Canada search for domestic sources of energy.

Industry makes case for development

The proposed endeavour to unlock gas from the shale has ignited boisterous protests in recent weeks and made international headlines, including an article in the Economist magazine.

Quebecers have been outspoken with concerns about potential environmental effects such as the contamination of drinking water.

The St. Lawrence River's south shore is home to fertile farmland and rich shale deposits. (CBC)

But government and industry players say the reservoirs are too lucrative to pass up. In just a few years, companies have leased the entire region.

Still, the fledgling industry is growing too fast for its opponents, prompting them to call for a provincewide moratorium on exploration and production.

Shale gas production is already underway in Alberta and British Columbia, and U.S. states including New York and Texas, and Quebec is not the only North American jurisdiction where concerns have surfaced over the exploitation of shale gas.

New York state called a temporary moratorium in August.

Fears raised in several other states have prompted the U.S. Environmental Protection Agency to launch a study into the potential risks to the environment and human health.

Natural Resources Canada has warned the Canadian government that drilling for shale gas could increase carbon-dioxide emissions, encroach on wildlife habitat and sap freshwater resources.

Secor is a strategic adviser to businesses and public organizations in Quebec and across Canada and the U.S.