• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 11 hours Its going to be an oil bloodbath
  • 12 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 5 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 5 hours Marine based energy generation
  • 7 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 18 hours The Most Annoying Person You Have Encountered During Lockdown
  • 21 hours Which producers will shut in first?
  • 15 hours Trafigura CEO Weir says, "We will see 30% to 35% drop in demand". That amounts to 35mm bbls/day glut ! OPEC+ 10 mm cut won't fix it. It's a DEMAND problem.
  • 9 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 19 hours Cpt Lauren Dowsett
  • 4 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 17 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 20 hours Washington doctor removed from his post, over covid

Breaking News:

IEA: OPEC Can’t Save The Oil Market

Alt Text

Giant LNG Projects Face Coronavirus Death Or Delay

The coronavirus crisis is now…

Alt Text

Why Civil Rights Activists Are Backing Natural Gas

Top American civil rights activists…

Al Fin

Al Fin

Al Fin runs a number of very successful blogs that cover, energy, technology, news and politics.

More Info

Premium Content

Canada's Increasing Demand for U.S. Natural Gas

Canada needs US natural gas to help produce its bitumen oil sands. As oil sands production ratchets up from 1.5 million barrels per day to 5 mbpd by 2020, Canada's demand for US gas should continue to rise.

The emergence of shale gas over the last six years has fueled our hopes that we'll be able to safely transition away from our oil addiction.

Not only do we have an abundance of it trapped in the various shale formations across our country, but developing that resource is inevitable, because we're not the only ones counting on that future supply...

You see, it's not just the United States that's depending on U.S. gas production. Remember Canada's trouble with peak natural gas?

It turns out natural gas exports to Canada have doubled in just five years!

U.S. natural gas exports to Canada

We may be relying heavily on an ever-increasing amount of Canadian crude to meet our oil fix, but Canada's natural gas troubles will only worsen as production from the oil sands grows to more than five million barrels per day in the coming decade. (Natural gas plays a vital role in the extraction process of deeply-buried bitumen.)

Remember, more than three-quarters of Alberta's oil production comes from oil sands operations.

As if that weren't enough, Canada isn't the only country crossing her fingers for more U.S. natural gas. South of the border, Mexico is also relying more on our supply.

U.S. exports to Mexico have also jumped significantly. Prior to 2000, we barely exported any natural gas to either Canada or Mexico. Today's a different story.

Just like Canada, Mexico can't get enough of it...

Last year, natural gas production from the Marcellus averaged 1.3 Bcfe/d. By the start of 2011, production was around two billion cubic feet per day. And this is only the beginning.

Within the next eight years, production is expected to jump more than 775% to 17.5 billion cubic feet per day. In the process, it'll add at least 250,000 jobs and tack on over $20 billion in revenue to Pennsylvania's economy.

We're also expecting the drillers to have a field day. Even though natural gas prices have been lackluster since crashing in 2008, drilling more than doubled in 2010. There are more rigs drilling the formation than ever before..._EnergyandCapital

Canada has plenty of shale gas too, but for now it is more lucrative to produce oil than gas, given current price spreads. Once the nascent gas to liquids (GTL) industry revs up, prices should slowly converge, and gas will become a more lucrative product.

By. Al Fin


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Anonymous on August 12 2011 said:
    Utterly crazy.It takes about four gas equivalent barrels of oil to yield about five barrels of actual oil - i.e. close to nil return on energy.
  • Anonymous on August 13 2011 said:
    Does anyone realize that this fuel is going to be headed not to Canada but, China and other countries? The citizens get the ecological problems and the gas companies get ALL THE PROFITS!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News