• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 2 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 4 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 3 hours Will Uncle Sam Step Up and Cut Production
  • 2 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 2 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 1 day US Petroleum Demand Strongest Since 2007
  • 7 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 5 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 15 hours Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 15 hours Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 21 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
Alt Text

Kurdistan’s Massive Gas Reserves No One Knows About

The announcement of independent driller…

Alt Text

Japan Is Bargain Hunting As LNG Prices Slump

Utilities in Japan, the world’s…

Alt Text

Gas Flaring “Running Rampant” In The Permian

Gas flaring in the Permian…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Canada's Offshore Versus Shale Gas

Natural gas from Canada's offshore east coast is finally coming to market.

Last week, regulators issued an Operations Authorization for the Deep Panuke gas project, offshore Nova Scotia. Project operator Encana will now be able to start producing gas and delivering it to the mainland.

This is the end of a long saga for Panuke. I remember many of my geologist classmates going to work on the project in the 1990s.

A series of delays however, have left the megaproject idle for years. During which time the natural gas market has changed a lot.

When Panuke was conceived, the east coast gas export market was going strong. But the U.S. shale gas revolution changed that. Particularly during the last few years, as production from the northeast Marcellus shale ramped up (that play's output has jumped 30% over the last year alone).

This new supply of U.S. gas has had a big impact on imports.

Related article: Shale Gas: Why Reality has not Lived Up to the Dream

The chart below shows gas imports to the U.S. east coast from Canada over the last five years, based on data from the Energy Information Administration. Since 2007, imports to New York, New Hampshire and Maine have fallen over 60%.

US Nat Gas Imports from Canada

In fact, gas supplies have built up in the northeast to the point where pipelines are starting to reverse flows. Exporting U.S. gas into Canada. 2011 and 2012 were first years recorded where gas flowed north from New York across the border.

Related article: This Week in Energy: Another move forward on US LNG exports

Now, Deep Panuke's gas is headed into direct competition with these supplies. It will be interesting to see how the project fairs amid such an environment.

The project might still make money. But it could well end up being a cautionary example for developers in the new North American natgas sector.

Here's to timing,

By. Dave Forest




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play