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Northeast British Columbia's Ultimate Potential for Conventional Natural Gas - Fact Sheet

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Fact Sheet

31 March 2006

Northeast British Columbia's Ultimate Potential for Conventional Natural Gas - Energy Market Assessment

Canada's role in the North American natural gas market is an important one. Today, Canada provides approximately one-quarter of the total North American gas production. While the key natural gas producing province in the country is Alberta, British Columbia also plays an important role. In 2003, British Columbia provided approximately 15 per cent of Canada's total production.

This Energy Market Assessment, Northeast British Columbia's Ultimate Potential for Conventional Natural Gas and Appendices, provides an outlook for what natural gas resources could be available for future use by the province. Ultimate potential for natural gas is a key factor in making projections of future supply. It provides basic information for further investigation of the pace of development, deliverability and economics.

This report is the result of a joint study by the National Energy Board (NEB) and the British Columbia Ministry of Energy, Mines and Petroleum Resources (MEMPR). It began in 2003 to focus specifically on the northeast area of the province due to increased drilling in the area and the discovery of several large pools in plays that had not been considered in previous studies. The joint study includes these key findings:

  • The total ultimate potential for northeast British Columbia, including gas already produced, is 52 Tcf (trillion cubic feet).
  • The remaining gas available for future demand is 35 Tcf. With the current annual production of 0.95 Tcf, this represents approximately 37 years of production.
  • The northeast part of British Columbia is not as mature as the Alberta portions of the basin which means there is more upside for future potential.
  • Additional conventional and unconventional resources are also available elsewhere in B.C., both onshore and offshore.

Determining Ultimate Potential

The term ultimate potential refers to the estimate of the volume of marketable gas reserves that will be proven to exist in an area after exploration has ceased.

Ultimate potential = discovered resources + undiscovered resources

For example, the total ultimate potential for B.C. is 52 Tcf. That number includes the amount already produced to the end of 2003 which was 17 Tcf and the remaining gas available for future demand which is 35 Tcf.

Northeast British Columbia's Ultimate Potential (Tcf)

Northeast B.C. holds approximately one-quarter of the ultimate remaining potential of conventional natural gas in the Western Canada Sedimentary Basin (WCSB).

Better understanding of geological plays

The new estimate of ultimate potential shows that the distribution of the conventional gas in the geological and geographical sense has changed because of a better understanding of the WCSB area.

Between 1992 and 2003, the number of wells drilled in B.C. almost doubled from 7,582 to 14,568. These new wells provided additional information for the geological assessment of the area.

Geological plays in B.C. are relatively less developed than those in Alberta. As industry continues drill wells in B.C.'s portion of the WCSB, the knowledge gained from these wells may further increase the estimate of remaining gas potential.

Location of Western Canadian Sedimentary Basin (WCSB)

Resources for the future

The study also noted that B.C. has additional conventional gas resources that could be drawn upon in the future. These resources are found in the interior basins, southeast B.C. and offshore basins. The province also has unconventional gas resources, such as shale gas, coalbed gas, tight gas and gas hydrates that could supplement the conventional gas resources.

Conclusion

Conventional natural gas in B.C. may continue to grow as industry expands in this area. With continued activity in the WCSB and other areas of the province, geological assessments will provide further information about what lies beneath the soil. This in turn will create a better picture of the ultimate potential for natural gas in the province.

 

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Date Modified:
2011-10-28