Natural gas market assessment. Natural gas supply, western Canada: Recent developments (1982-1992), short-term deliverability outlook (1993-1996)

A review is presented of the evolution of gas supply from western Canada over the last ten years and a short-term forecast of gas deliverability. To illustrate the changed supply conditions, selected trends and market developments are summarized, including trends in excess deliverability, changes in reserves, the regional distribution of cumulative production, the pace of tieing-in of previously discovered pools for production, the expansion in deliverability from gas storage reservoirs, and recent increases in drilling activity. On the basis of analyses and observations, it is concluded that estimated productive capacity is likely to exceed pipeline capacity on a peak-day basis by a narrow margin over 1993-96. Increasing deliverability from gas storage reservoirs located in the producing provinces is an important factor in handling peak day requirements. From time to time, high demand due to extreme weather conditions could result in pronounced tightness and price fluctuations similar to those seen in winter 1992/93. A strong economic recovery could also result in market tightness, depending on the speed and size of supply response. The growing estimates of resource potential in the western Canada sedimentary basin provide an encouraging indication of the availability of future supply. 29 figs., 3 tabs