By OGJ editors
HOUSTON, Nov. 10 -- Canada's National Energy Board expects that the total average Canadian gas production will increase to 17.3 bcfd by yearend 2007 from 16.9 bcfd in 2004.
In its report, Short-term Canadian Natural Gas Deliverability 2005-07, NEB discusses the short-term gas supply situation by examining recent production trends in the Western Canada Sedimentary Basin and off eastern Canada.
NEB Chairman Ken Vollman said, "While production of conventional gas in the WCSB is expected to decline slightly, the increase in production of natural gas from [coalbed methane] is expected to offset the declines and enable a small increase in gas deliverability."
Regarding eastern Canada, NEB expects production from the Sable project off Nova Scotia will remain at 400 MMcfd of gas during 2005-06. The installation of compression facilities is expected to briefly boost production to 500 MMcfd during 2007.
Elsewhere on the Nova Scotia shelf, the industry has taken several costly hits as three wells came up dry last year (OGJ, Aug. 9, 2004, p. 44).
Meanwhile, rising natural gas prices have prompted record gas drilling levels across Canada. NEB anticipates that industry will maintain very high drilling levels, but the effort is expected to result in only a modest increase in total Canadian gas production during the next 2 years.
WCSB
Almost 98% of Canadian gas production now comes from the WCSB, with Alberta accounting for 80% while British Columbia accounts for 16%, and Saskatchewan accounts for 4%.
NEB expects that WCSB conventional gas production will drop to 16 bcfd in 2007 from 16.3 bcfd in 2004.
Meanwhile, CBM production in the WCSB is growing rapidly. NEB projects CBM production there will reach 900 MMcfd by yearend 2007 compared with an estimated 300 MMcfd in 2005.
Commercial CBM production already is under way in some parts of Alberta while still in the experimental stage in other parts of Alberta and in British Columbia.