The short-term supply in the Western Canadian Sedimentary Basin (WCSB) remains relatively flat to down. We expect supply to be down about 400-500 MMcf/day this year.
AT A GLANCE
We expect record industry activity in 02/03 with over 12,000 gas wells drilled
WCSB production this year is declining due to lower, new well productivity caused by an increase in marginal wells due to high gas prices, continued shallow drilling and possibly increasing decline rates
Mild weather and the decrease in industrial demand
allowed North American storage to fill this summer
WCSB supply will be flat or grow slightly next year
assuming optimal weather conditions
Based on further analysis and recent receipt data,
the forecast of average winter flows on the Alberta
System has been revised to 10.4 - 10.7 Bcf/day
Gas supply tightness, high priced storage gas, high oil prices, increasing demand due to economic recovery, and uncertain weather will provide support for gas prices this winter
For more information on our Supply/Demand outlook, please refer to our presentation, or contact Craig Yano at 403.920.2255.
