Next generation energy sources : the role of natural gas

This presentation identified natural gas as the energy choice for the next generation. Natural gas is a safe, clean, flexible and reliable energy source that is part of an increasingly diversified fuel mix. With abundant, long term supplies of natural gas, new natural gas generation can be built quickly and cost effectively. Power generation is the fastest source of natural gas demand growth. In Canada, power generation accounts for 9 per cent of natural gas demand, while in the United States, it accounts for 23 per cent. Generating electricity with natural gas costs less, plus it is efficient and clean. The annual North American production is 27 trillion cubic feet (Tcf), which closely matches the current demand. The demand is expected to reach 32 Tcf by 2015. North American proven reserves are 254 Tcf and Canada's ultimate potential resource is 473 Tcf. This presentation also discussed the outlook for future gas prices. Price and volatility have both increased. The prospects in the medium term are for an easing of market tightness and restoring the balance of supply and demand. tabs., figs