Report predicts shift in natural gas production

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By Christine Rumleskie

 

The National Energy Board has released a report that claims there’s going to be a big shift in where natural gas will be produced.

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The Short Term Canadian Natural Gas Deliverability report predicts a shift from Alberta to British Columbia in natural gas production.

Project Manager Melanie Stogran says the Horn River and Montney plays will see the most action.

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She says Alberta’s gas production is expected to decline over the next few years from 12.7 to 8.5 billion cubic feet per day (Bcf/d.)  Meanwhile, the report found B.C. will see an increase from 2.7 to 3.7 Bcf/d.

The report also found that in 2010, more than 210 wells could be drilled in Montney, and 70 wells in Horn River.

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And she says the Horn River area will generate around 0.5 Bcf/d by 2012.

But it’s not all good news for B.C., as the report found that overall natural gas production is expected to decline through 2012. Stogran says this is due to lower drilling activity in recent years compared with earlier in the last decade. In 2012, deliverability could be 13 Bcf/d down from 15.1 Bcf/d in 2009. Stogran also says an increase in oil prices is also presenting challenges to natural gas producers. She says drilling for oil is more profitable than gas right now.

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Either way, the National Energy Board says there is more than enough natural gas available to Canadians, and there will continue to be enough in the upcoming years.

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