North American gas bubble not expected to burst until 2014

The price of natural gas continues to slide and that's hurting more than producers.

Drilling activity on that side of the energy business is down, which means fewer jobs, and less revenue for the Alberta government in the form of taxation and royalties.

Industry observers suggest things will likely get worse before they get better.

The Director of Gas Consulting with the Ziff Energy Group, tells 660News, gas producers are dealing with a couple of major problems, over supply and mild winter weather.

Edward Kallio says the technology that made it easier and cheaper to extract natural gas, hydraulic fracturing, is now punishing the industry.

Kallio says North America is awash with natural gas, with many firms scrapping plans to drill.

He believes the current natural gas price bubble will burst in a couple of years but things will remain rather ugly until then.

University of Calgary Economist, Dr. Frank Atkins, says for a change the environmental movement could actually help the industry, if claims the fracking process is indeed contaminating ground water.

Atkins says such a revelation would halt a lot of drilling activity, stateside reducing supply putting upward pressure on the commodities price.

Both Atkins and Kallio agree the one thing that is helping soften the economic blow for many energy companies is the high price of oil.