British Columbian gas may offset conventional decline

Further development of shale and tight natural gas prospects in Northeast British Columbia may be able to offset an expected 7% decline in conventional Canadian gas production by 2010.

By OGJ editors
HOUSTON, Oct. 26 -- Further development of shale and tight natural gas prospects in Northeast British Columbia may be able to offset an expected 7% decline in conventional Canadian gas production by 2010, said that country's National Energy Board.

The price of gas would need to climb back to $8-9 (Can.)/gigajoule for operators to maintain or accelerate current drilling levels, and board said. Producers indicated great enthusiasm for the resource potential on the deeper, less-developed western side of the Western Canada Sedimentary Basin, it noted.

The board in its 2008-10 deliverability report considered reference, low, and high-investment cases, all of which take into account the development of shale and tight gas prospects in the Horn River and Montney plays.

Gas production in the US has increased by 8%, and the global economic situation could reduce demand, the NEB noted.

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