Finance News Follow us to find the latest Finance news
A new estimate from the gas resource held in the Liard basin straddling the Bc, Yukon and Northwest Territories borders ought to be reason for celebration – with 219 trillion cubic feet of marketable gas, it’s one of the largest shale gas deposits obtainable in the world.
In better times, such an eye-popping number would have triggered stock appreciation, pumped governments to invite development and promoted competition between corporate players eager to enter on the action.
But with the pile of nixed and challenged energy projects getting bigger, and gas prices languishing, the Liard’s supersized resource estimate mostly serves as a reminder that Canada has great resource potential – try not to believe it in the near future.
The reasons behind the country’s struggles to turn resources into exports are consistent: regulatory delays, opposition from aboriginal and environmental organizations, climate change worries, political mishandling and, ultimately, changing market conditions.
Related
- Natural gas supply in B.C. dramatically greater than original estimates: reportPetronas believes ultimate decision on Pacific NorthWest LNG project close, but denies deadline
According towards the study, published by the NEB Wednesday and completed in collaboration with the British Columbia Oil and Gas Commission, the Yukon Geological Survey, the Northwest Territories Geological Survey and the Bc Ministry of Natural Gas Development, the Liard offers the world’s ninth-largest gas accumulation, and Canada’s second largest following the Montney, shared by Alberta and B.C.
The basin collected sediments from about 540 million years back to around 65 million years back, plus some converted into shale that generated natural gas. Most of the gas is within British Columbia, with 167 trillion cubic feet, the NWT landed 44 and also the Yukon eight.
Canada’s total natural gas usage in 2014 was 3.2 trillion cubic feet, meaning the Liard could satisfy a lot more than 68 years of national consumption.
San Ramon, Calif.-based Chevron Corp., and Perth, Australia-based Woodside Energy, possess a number of wells that are already producing gas that is transported by pipeline towards the southern a part of B.C. and the U.S. Pacific Northwest. The partners plan to use the resource to give the proposed Kitimat LNG project on Canada’s West Coast assuming it’s built.
Mike Johnson, technical leader for hydrocarbon resources at the NEB, said the Liard is extremely prolific, has existing pipeline connections, and could see big development if gas prices increase.
“We aren’t well versed concerning the economics,” he explained. “It’s more remote, so it cost more to develop the resource, but the wells are really, really big.”
Today gas in Western Canada is depressed and there is no upside around the corner.
It’s been pushed out in many historic markets by shale gas manufactured in america. Proposals to build liquefaction facilities around the B.C. coast to allow exports to Asia are stuck in delays, while competing jurisdictions are jumping ahead.
The $36-billion North american LNG project proposed by Malaysia’s Petronas and its partners is due for any recommendation in a few days on whether or not this can move forward by federal Environment and Global warming Minister Catherine McKenna. But it’s expected to face further delay after Ottawa introduced new greenhouse-gas emissions considerations, fueling proponents’ frustration.
Last month, Royal Dutch Shell PLC delayed a choice on construction from the LNG Canada project ’till the end of the year, and AltaGas Ltd. put on contain the Douglas Channel project.
The lineup of cancelled or delayed projects was already long. It includes the Mackenzie gas pipeline, the Northern Gateway oil pipeline, the Keystone XL oil pipeline and the Alaska Highway gas pipeline.
Bob McLeod, premier of the Northwest Territories, said oil and gas companies “packed up and left” from the North after oil prices collapsed.
In a speech towards the Arctic Oil and Gas Symposium in Calgary, McLeod said his region is greatly impacted by climate change, which fuels forest fires and hinders ice roads.
But he explained the North also wants energy development because it needs jobs.
After losing Mackenzie gas, drilling in the Beaufort Sea and gas and oil activity within the central Mackenzie Valley, the NWT is get yourself ready for the next oil and gas upturn by building infrastructure, reforming land tenure and helping with aboriginal land claim settlements, he said.
“If you will find the resources only then do we expect that sooner or later the power will be required,” said McLeod, who remains hopeful the Mackenzie pipeline will ultimately be built. “If you look in the forecasts, they still observe that even with the conversion to renewable and alternatives type of energy, there’ll still be a requirement for gas and oil.”
ccattaneo@nationalpost.com
Twitter.com/cattaneooutwest
