• 3 minutes In a Nutshell...
  • 5 minutes CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 7 minutes Australian renewables zone attracts 27 GW of solar, wind, battery proposals
  • 9 minutes Why Oil could hit $100
  • 5 mins COVID is real now
  • 15 hours Is Biden the poster child for White Privilege ? DNC needs to replace him now before it's too late.
  • 5 hours The Boris Yeltsin of America
  • 14 mins Where is Alberta, Canada headed?
  • 14 hours Why Putin is popular in Russia
  • 2 days Is the oil & gas industry on the way out?
  • 12 hours Is The Three Gorges Dam on the Brink of Collapse?
  • 26 mins There Has Been No Trump Manufacturing Boom Even Before Covid
  • 11 hours Fauci: "USA will soon have 100K new cases per day". Trump re(p)-lies: "The problem has been fixed"

Breaking News:

Oil Climbs On Major Crude Draw

U.S. LNG Industry Needs Prices To Double

U.S. LNG Industry Needs Prices To Double

Large U.S. LNG projects are…

Russia Eyes Another Massive Gas Pipeline To China

Russia Eyes Another Massive Gas Pipeline To China

Russia and China see further…

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