Gas Production Gets a Boost

Output is expected to fall in years to come due to fewer wells, lower prices

It heats our homes, it generates electricity, and for some it even cooks dinner. And last year we produced a bit more of it.

Alberta’s conventional natural gas production increased slightly in 2015 to 10.6 billion cubic feet per day.

This increase was largely driven by a 32 per cent spike in drilling in 2014. Conversely, natural gas drilling levels declined by 23 per cent in 2015.

Growing shale-gas production in the United States has kept prices low across North America. Alberta natural gas prices are particularly vulnerable due to the loss of traditional export markets such as Ontario, Quebec, and the eastern United States.

Until natural gas prices rise, the AER doesn’t forecast notable development of Alberta’s ample shale gas resources. Therefore, the AER foresees that natural gas production in Alberta will fall over the next decade as production from new drilling fails to offset production declines.

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