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The Natural Gas in Canada Production & Price Thomas Chaize November 6th, 2008 Email: dani2989@voila.fr The peak oil makes us forget that regional production peaks are also possible for natural gas. Canada is the third largest producer of natural gas World with a production of 188 bcm, ahead of Iran and its 111.9 bcm and behind Russia (607.4 bcm) and the United States (546 bcm), which are also the two First consumers. The balance between production and natural gas prices in North America depends on the surplus production of natural gas from Canada, it must bridge the production deficit of the United States.
From 1987 to 2001, the Canadian production of natural gas has increased continuously from 80 to 180 billion cubic meters of gas. From 2001 to 2006, production has stagnated between 186 and 188 billion cubic meters of natural gas. In 2007, production of natural gas from Canada experienced a slight decrease of 2.5%. A decrease of 7 to 15% is possible by 2009 according to the National Energy Board of Canada.  Since 1984 natural gas reserves in Canada have
fallen by 42% since 2003 it remains stable.
Alberta and natural gas
As we have seen in the study on natural gas production in North America, the balance between supply and demand in North America based on the surplus production of Canada. The production of Canada as it depends on gas production in Alberta. Alberta produced 135 734 million cubic meters of gas in 2007 is 81% of the natural gas production in Canada. It owns 70% of gas reserves of Canada. The natural gas production in British Columbia represents 13% of the production of Canada and Saskatchewan 3.7%. Expenditures for equipment for gas and oil have tripled in the region of Alberta and the number of gas wells in operation has almost doubled in 8 years, yet production and natural gas reserves have declined since 2000 in this Strategic region … 
During the period of stagnation in production of natural gas since 2001, investments in search of natural gas and oil have tripled. The number drilling for natural gas research has doubled. The minimum price of natural gas has tripled over the same period. The natural gas sector in Canada has undergone a period of strong investment and exploration activity very important reason for the increase in natural gas prices. Despite all these positive factors, natural gas production has stagnated, then declined in 2007 and it probably still fall in 2008. To sum up, spend more money to drill advantage of holes and produce at best the same amount of gas… To maintain the production of natural gas in North America, levels of high prices for natural gas are indispensable. Today, it takes more drilling, ever more complex and profound, which cost more and more painfully expensive to maintain the production of natural gas. The high price levels save production in the short term, but they did enough in the long term to prevent the fall of production in North America. The excess production of Canadian natural gas to the USA begins to diminish. The decline in production in the region of Alberta in Canada upsets the balance between supply and demand in North America (USA, Canada, Mexico). For those who think that electricity can replace natural gas, know that 45% of electricity generating capacity in the U.S. are gas-fired power plants and that 96% of new installed capacity are gas-fired… Aggravating cause to the production of natural gas in Canada, oil sands attract some capital for natural gas. Natural gas is consumed in the production of oil from oil sands. it impedes the financing and they are increasing the pressure on demand… The problem of the natural gas market in North America is the remoteness of the areas of production. There is no pipeline with Russia, West Africa or the Middle East, and to transport the gas there are no other solutions that Natural Gas Liquefied (LNG) and LNG… As I wrote 3 years ago, gas prices will continue to climb in North America. The LNG, or coalbed methane exploration in the Far North will develop with high prices for gas. You read everywhere that speculation and winters too cold are responsible for rising gas prices, and as for oil structural causes will be ignored in favour of cyclical explanations more or less sensible. Dr Thomas Chaize
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