Future Canadian gas production to come at higher costs

Canada's annual natural gas production increased almost 20% during 1995-2001. During that time Canadian gas satisfied continuing growth in its domestic markets while increasing exports to the US by almost a third.In 2002, the record of growth ended as gas well completions fell by 17% and overall production began to drop. Despite higher prices and increased drilling in 2003, supply growth remains elusive, reported the Canadian Energy Research Institute, Calgary.CERI assessed the potential supply and costs of natural gas in Canada to determine whether the limit had been reached for conventional Western Canada gas production and to determine future potential for alternative sources of Ca...

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