Canada's natural gas production to fall in 2007

[GliderGuider]

Natural Gas Has Biggest Gain in 7 Weeks as Oil Prices Increase

March 21 (Bloomberg) -- Natural gas rose the most in seven weeks in New York as prices for rival oil-based fuels climbed.

...

A decline in imports of natural gas from Canada may lead to higher U.S. prices this summer, said Peter Linder, an energy analyst with DeltaOne Capital Partners in Calgary.

"We're going to have the biggest decline in western Canadian production in the history of the industry," Linder said. "There's going to be 400 to 600 million cubic feet a day less production from western Canada in 2007 versus 2006."

This amounts to about 8% of Canada's annual output of 6.2 billion cubic feet per day. Canadian gas production may have have peaked.

According to David Hughes, an energy analyst with our federal Ministry of Natural Resources, the average productivity of new gas wells in Alberta has gone down over 70% in the last ten years. Hughes' presentation to ASPO Boston (PDF warning) paints a very disturbing picture of our NG situation.

[NickB79]

1. Kicking for importance

I wonder if the looming danger of energy depletion will hit home when people begin finding Granny frozen solid in her unheated apartment because gas was just too damn expensive. A decline in natural gas production on the North American continent has dire implications.