The easy gas is gone

The decline in natural gas production rate in Alberta was discussed. Total production from new wells in 1995 and 1996 was less than the previous years. It was noted, however, that only 40 per cent of Alberta's reserve base has been produced, and that discoveries from new, but small reserves exceeded production by 8 per cent. In many cases companies, particularly smaller firms, have structured themselves to exploit shallow gas prospects at low risk and good profitability. It was suggested that the industry will be drilling many deeper wells in the foothills which are geologically complex due to heavy faulting. These areas are believed to hold larger, high-pressure, longer life gas pools. If natural gas prices stay up, it would stimulate higher-risk exploration. 2 figs