A new article in Canadian Business Magazine is poising the question ” What happens when America doesn’t need our oil?”
The man who penned the story, Michael McCullough the western editor of the magazine, tells 660News it’s already happening with natural gas.
McCullough says a few years ago, Canada supplied one-sixth of the gas America burned, today because of new technology and shale gas plays, we only supply one-twelfth.
He says because of the glut of gas in North America, prices will likely remain depressed for the foreseeable future, adding people in the oil patch are not going to light their cigar’s with $20.00 bills.
McCullough says the focus of the natural gas industry will shift over the next 10 years from increased production to cost control and competitiveness and trying to get the product to markets that need it.
A planned $285 million carbon capture and storage project in the Swan Hills region in Alberta was cancelled Monday, with low natural gas prices cited.
The carbon dioxide would have been stripped out and sold to nearby oilfields to boost production.
CEO Martin Lambert says natural gas has become so cheap that it no longer makes sense to create more from coal.
Synfuels was one of four carbon capture and storage projects the provincial government was funding out of a $4-billion pot.
The projects have been referred to by government officials defending the province’s environmental record.
TransAlta scrapped a $1.4-billion project last spring.
The two remaining projects _ Enhance Energy’s CO2 pipeline and Shell’s Scotford upgrader _ are proceeding.
A few years ago, royalties from natural gas pumped as much as $8 billion into provincial coffers, today the figure is closer to a $1 billion.
The natural gas boom of 2005 -06 is what produced a cash windfall for all Albertans’ in the form or Ralph Bucks.