 |
Industry working hard to increase supply.
Skyrocketing commodity prices this year have had the expected effect on drilling rig activity, especially this past summer. During this summer, there were 35 per cent more active rigs in the field than last summer to the end of September. However, the number of gas wells drilled so far in 04/05 is similar to 03/04, mainly due to a higher number of deeper and deviated/horizontal wells. Gas well connections are higher by 9 per cent, however declining well productivity and high decline rates continue to dampen any possible gains in gas supply. |
|
In fact, it appears that gas supply in the Western Canadian Sedimentary Basin (WCSB) will remain flat in 04/05 at 16.8 Bcf/d. The forecast for the Alberta System this winter is for receipt flows in the 10.7 - 11.0 Bcf/d range. WCSB gas supply may grow about 100 MMcf/d this winter as rig activity is expected to be the highest ever due to the strong prices, limited only by the number of crews available to work the rigs. Gas exports from the basin are expected to grow this winter, especially to the east.
For more information on WCSB industry activity and the winter supply/demand outlook, please refer to the presentation on the Customer Express website, or contact Craig Yano at 403.920.2255 or Al Jamal at 403.920.2265. |
