Oversupply of Gas has Industry Diversifying
Published on July 7, 2010
July 07, 2010, Medicine Hat Alberta...The Canadian Society for Unconventional Gas (CSUG) event hosted by Palliser Economic Partnership explained why there is currently an oversupply of natural gas in North America and the importance for the energy sector in southeast Alberta to diversify and capitalize on the opportunity of new markets and the growth potential that technology provides.
Mike Dawson, president of CSUG, presented to oil and gas producers in southeast Alberta, on June 24th about the challenges of the North American gas market and how it affects local producers. Explaining the reasoning for low gas prices – over supply and lessened demand, and why that trend is expected to continue for years to come; he encouraged gas companies to focus research and development efforts on the creation and deployment of new technologies to increase productivity and decrease costs.
“Dawson reinforced the importance for companies exploring and producing natural gas to streamline and become high productivity and low cost operators,” said Tracy Heebner, business development officer for the Economic Development Alliance (EDA) of Southeast Alberta. “In order to compete in North America and branch into new developments in the global marketplace it will be crucial to look into economies of scale, manufacturing processes and alliances with the service industry.”
Demand was an important issue that Dawson touched on, while getting costs down on the supply side is urgent, of equal importance is increasing product sales; however, little is being done in Canada to increase demand.
“With the surge of unconventional gas in the United States, companies are being creative in ways to increase demand for their product,” said Heebner. “Campaigns are being created by producers partnering with Al Gore, promoting natural gas as a clean fuel source for cars. These companies are unlocking the potential of vehicle conversion technology, presenting new opportunities.”
To learn more about opportunities for local companies, contact the EDA or view Dawson’s presentation and PowerPoint. The presentation includes four modules: what is unconventional gas, drilling and completion technologies, North American gas market and its impact on Western Canada and opportunities and challenges. Modules three and four.
The full video is also available at no cost by contacting Kendra Borgen, Communications Coordinator at kborgen@edalliance.ca.