Deliverability of natural gas in Canada is in what the National Energy Board calls a "holding pattern" because low prices have suppressed gas drilling.
In a report covering 2013-15, NEB says current gas prices of about $3/MMbtu preclude cost recovery in the development of most gas prospects and make producers in Western Canada unable to attract equity investment. With dry-gas drilling minimal, growth in gas supply comes from production associated with oil and natural gas liquids.
NEB said it expects Canadian gas demand to grow by 500 MMcfd during 2013-15, mostly from oil sands development in Alberta, as deliverability continues to exceed demand.
NEB notes these trends...