[cdn-nucl-l] Canadian Natural gas reserves falling

["Adam Mclean" <adam.mclean@utoronto.ca>]

Posted in the Toronto Star on November 26, 2004 and at:
http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Artic
le_Type1&c=Article&cid=1101424211749&call_pageid=968350072197&col=9690488638
51
See more detailed data at: www.capp.ca

Last year, Canada had production of 6.1 trillion cubic feet (tcf) of natural
gas, and 3.6 tcf of reserves added to the total, leaving a net 2.5 tcf
removed from total reserves.

56.6 tcf remaining, 2.5 tcf net removed per year means 23 years of supply at
the current rate of use.  

In light of this, why would any power company build a natural gas burning
plant?  

Note that in 2001, about 40% of Canada's power came from burning natural
gas...

Adam

-----------------

Natural gas reserves still falling, report says
More wells drilled for less output

Reinforces belief supplies are tight

CALGARY-Canada's known natural gas reserves continue to decline even though
a record number of wells were drilled in 2003, an energy industry group
announced yesterday.

In its annual estimate of energy reserves, the Canadian Association of
Petroleum Producers, or CAPP, said natural gas reserves declined by 2.5
trillion cubic feet by the end of last year, to 56.6 trillion cubic feet.

A major factor in the drop was a decision by Alberta's energy regulator to
lower gas estimates by 7.5 trillion cubic feet for thousands of small,
single-well pools that had little production.

The numbers were also affected by a writedown in reserves at the Sable
Offshore Energy Project - the only producing gas site off Canada's East
Coast.

More than 70 per cent of the gas wells drilled in 2003 were in shallow pools
located in southern Alberta and Saskatchewan.

While only 59 per cent of production was replaced last year, more gas was
found in Saskatchewan and B.C., where replacement rates were 261 per cent
and 120 per cent, respectively.

"Exploration is pushing into the northern part of B.C. and I don't think
that's a surprise," said Greg Stringham, CAPP's vice-president of markets.

According to CAPP, Canada is the third-largest natural gas producer in the
world and by far the largest supplier of gas to the huge U.S. market. But
conventional supplies have been waning for several years now, forcing energy
companies to drill more wells for less reserves, all the while searching for
new gas pools in more remote areas.

Martin King, a commodity analyst with Calgary-based First-Energy Capital,
said the report reinforces beliefs that North America's natural gas supply
situation remains tight.

canadian press