Canadian Natural Gas Market Review
Study Released July 06, 2016
Study No. 158
The Canadian natural gas market has been heavily impacted by the shale boom out of the United States, leaving many in the industry to wonder what is ahead for producers. With current depressed natural gas prices, many drilling areas that were previously profitable are no longer economically attractive. Canadian drilling and production, particularly in the Western Canadian Sedimentary Basin, has dropped off significantly since 2012.
CERI’s “Canadian Natural Gas Market Review” shows that despite the current reduction in Canadian activity, the Canadian industry will see growth from its current levels due to the advances in horizontal drilling that enabled the shale boom, rebounding prices and growing demand for natural gas in both Canada and the United States. While the market for natural gas from Western Canada will remain impacted by the high levels of growth out of American shale plays, Canada will remain a net exporter of natural gas throughout the duration of the 20-year study period.