This report examines the short-and medium-term economic and profitability outlook for Canada’s Gas Extraction Industry.
Canada’s Gas Extraction Industry: Industrial Outlook Summer 2011
Canada’s Gas Extraction Industry: Industrial Outlook Summer 2011
Industry Economic Analysis
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- U.S. Supply—Rising supply south of the border keeps North American prices down and lessens U.S. demand for imported Canadian natural gas.
- Production—Production in Alberta is expected to decline severely over the next five years, pulling down total Canadian production. British Columbia will see a large increase over the same period, but the gain will fall short of offsetting the declines in Canada’s main producing province.
- Oil sands production—Competition with the neighbouring oil sector can result in rapid cost escalation for the natural gas industry. But rising production in the oil sands will also provide a new and important source of demand for the industry.
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