• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 12 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 21 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 30 mins Starvation, horror in Venezuela
  • 8 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 20 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 hour Why hydrogen economics does not work
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 22 mins China goes against US natural gas
Alt Text

Nord Stream 2 Clears Another Hurdle

Russia’s controversial Nord Stream 2…

Alt Text

Ghana Boosts Natural Gas Production

Momentum in Ghana’s hydrocarbons industry…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

Canada's Offshore Versus Shale Gas

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




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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