Canada’s Gas Extraction Industry: Industrial Outlook Winter 2014
The Conference Board of Canada, 10 pages
This report examines the short-and medium-term economic and profitability outlook for Canada’s Gas Extraction Industry.
- Gas Prices—In 2013, gas prices saw their first year-over-year improvement since 2004–05. However, the improvement is expected to be temporary, with prices not expected to remain above their pre-2010 levels.
- Drilling Activity—Drilling activity in the gas extraction industry remains weak as companies remain focused on increasing per well return by targeting liquids-rich plays and improving well productivity.
- British Columbia LNG—The B.C. government has pushed back the announcement of a fiscal framework for liquefied natural gas royalties. The resulting regulatory and pricing risks associated with LNG export terminals have led to delays to the final investment decisions.