Canada has had several new natural gas finds that seem to more than double the 57 trillion cf of reserves previously recorded. Plus some of the oilsand methods are burning some of the oilsands to get the rest flowing (THAI/Capris)
Bruce power has applied to build 4 nuclear reactors in Alberta (4000MW). First power could be in 2017.
April 8 (Bloomberg) -- Apache Corp., the U.S. oil and natural-gas company that has almost a quarter of its reserves in Canada, said three shale gas wells began production in British Columbia in the western part of the country.
The company said its stake in Ootla, about 60 miles from Fort Nelson in northeastern British Columbia, may hold 9 trillion to 16 trillion cubic feet of gas. Horizontal wells test flowed at rates of 8.8 million cubic feet, 6.1 million cubic feet and 5.3 million cubic feet of gas a day
This natural gas plus the Montney find in BC (50-80 trillion cf) and the Horn River basin (12+ trillion cf.)
EOG has increased natural gas growth from 10% to 13-15% in 2009 and 2010 because of its part of the Horn river basin (6 tcf)
The Montney shale is deep, making drilling more expensive. Second, year-round drilling in northern Canada is precluded by weather conditions, so the pace of development can never be as furious as that seen in the Barnett. These are just two reasons to help explain why EOG is only modeling a 20% after-tax rate of return in the Montney play
BC's government is making it easier to exploit natural gas.
Quebec also has a large natural gas find. The Utica Shale based on some of the Canadian-based research on the play to date the size of the resource is being estimated between 24 and 30 trillion cubic feet of natural gas.
Terrenex Ltd. ("Terrenex" or the "Company") (TSX VENTURE:TXA) reported that Forest Oil Corporation ("Forest"), a major US based natural gas producer recently announced a significant Utica shale discovery in the St. Lawrence Lowlands, Quebec. Subject to earning by its partners, Terrenex currently holds an interest in 719,000 acres (27,000 acres net) in the Lowlands adjacent to the recent discovery.
Two vertical pilot wells were drilled in 2007, testing the Utica Shale, to a total depth of approximately 4,800 feet. Production rates tested up to 1 MMcfe/d. Although the play is still in the early stages, Forest believes the initial results are encouraging due to the following factors:
- Shallow depth of the shale
- Rock properties are comparable to other more established shale plays
- High-quality natural gas with minimal impurities
- Infrastructure in place with nearby access to major pipelines
- Premium natural gas pricing to NYMEX makes the economics compelling
The preliminary net resource potential on Forest's acreage is estimated to be approximately 4 Tcfe. First production is expected in 2009 with the potential for a full scale drilling program in 2010 and beyond."
Natural gas is useful for developing the oilsands in Alberta.