Looking Ahead to 2010: Natural Gas Markets in Transition by the National Energy Board, Cat. No. NE23-118/2004E, ISBN 0-662-37107-0, August 2004
There are currently about two dozen pilot projects to develop CBM across the WCSB and some participants noted that about 1,000 CBM wells will be drilled this year, resulting in an expected 100 MMcf/d (2.8 million m3/day) of production. While it is too early to accurately assess this emerging supply source, the Board’s scenarios for CBM supply also indicate about 100 MMcf/d in 2004, consistent with actual production to-date.
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To-date, there has been mixed success. In attempting to develop CBM, some projects have experienced fresh or salt water production which presents additional challenges with water disposal and tends to increase costs and impact gas production. Other projects have focused on dry coals that produce gas with no water. Considering the variability of coals, the range of success amongst existing pilot projects, and the very early stage of CBM development in Canada, there is still significant uncertainty surrounding the future of CBM development.
The Horseshoe Canyon play in south-central Alberta was described as an example where developments have been positive. Ultimately, some 50,000 wells may be needed to recover the CBM from this area alone. The drilling risk in CBM development is relatively low due to the widespread deposits of known gas resources and drilling programs typically involve a large number of wells and high drilling density to achieve economies of scale. Several participants have characterized the exploitation of these resources as a “manufacturing process”. At the same time, some concern was expressed by CBM producers over their ability to obtain timely regulatory approval for the large numbers of wells that may be required to develop CBM. It was suggested that a new regulatory framework may be beneficial, and that regulators could consider a “blanket approach” to approve drilling programs for this type of [unconventional] development [including fracing shales]. [Emphasis added]
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ROUNDTABLE PARTICIPANTS
Organization Participants
Agrium Inc. Chris Tworek
Alberta Department of Energy Colin Carrigy
Alberta Department of Energy Barry Rodgers
Alberta Energy and Utilities Board Jim Dilay
Association québécoise des utilisateurs industriels d’électricité Luc Boulanger
ATCO Pipelines Bruce McRae
Atlantic Institute for Market Studies Dr. Thomas Tucker
B.C. Ministry of Energy and Mines Stirling Bates
B.C. Ministry of Energy and Mines Ines Piccinino
BP Canada Energy Company Stan Penchuk
British Columbia Utilities Commission Brian Williston
Calpine Canada David Sterna
Canadian Association of Petroleum Producers Greg Stringham
Canadian Association of Petroleum Producers Mark Pinney
Canadian Chemical Producers Association David Goffin
Canadian Electricity Association Hans Konow
Canadian Energy Research Institute Paul Mortensen
Canadian Energy Research Institute Matt Ayres
Canadian Gas Association Bryan Gormley
Cargill Power & Gas Markets Mark Stach
Central Heat Distribution Limited John Barnes
CIBC World Markets Inc. Andrew Potter
Consultant Julie Girvan
Consumers’ Association of Canada – Alberta Chapter James A. Wachowich
Corridor Resources Inc. Norm Miller
Direct Energy Marketing Tony Zaremba
Direct Energy Marketing Ltd. Pascale Duguay
Dofasco Inc. Paul Smith
Domtar Inc. Josée Latreille
Duke Energy Denis Marcoux
Duke Energy Gas Transmission Greg Staple
Duke Energy Gas Transmission Troy Adams
Emera Energy Inc. Ian Johnston
Enbridge Gas Distribution Inc. Dave Charleson
Enbridge Gas New Brunswick Rock Marois
Enbridge Gas New Brunswick Shelley Black
Encana Corporation Steve Brink
Encana Corporation Paul Gagné
Energy Probe Tom Adams
EPCOR Fred Shafai
EPCOR Glen Hensbergen
Falconbridge Limited Lauri Gregg
Gaz Métropolitain Inc. Normand Stevenson
Gaz Métropolitain Inc. Johanne Paquin
Hydro-Québec Suzanne Boisclair
Industrial Gas Users Association Peter Fournier
Imperial Oil James Hughes
Inco Limited John LeMay
Industrial Gas Consumers Association of Alberta Norm MacMurchy
Irving Oil Limited Mark Brown
Ispat Sidbec Inc. Jean-Paul Schaack
Maritimes and Northeast Pipeline Management Limited Steve Rankin
Maritimes and Northeast Pipeline Management Limited Ian Leadley
MGV Energy Inc. George Voneiff
Ministère des Ressources naturelles, faune et parcs Ronald Richard
Natural Gas Exchange Inc. Peter Krenkel
Natural Gas Steering Committee Daniel Potts
Natural Resources Canada John Foran
New Brunswick Department of Energy Jean Finn
New Brunswick Department of Energy Jim Knight
NB Power Michael Bourque
NB Power Rick McGivney
NB Power Bill Marshall
New Brunswick Board of Commissioners of Public Utilities John Lawton
New Brunswick Board of Commissioners of Public Utilities Doug Goss
Noranda Inc. Denis Coté
Norsk Hydro Canada Michel Brouillette
Nova Chemicals (Canada ) Ltd. Mike Elliott
Nova Scotia Department of Energy Bill O’Halloran
Nova Scotia Power Inc. Angela Trenholm
Ontario Energy Association Bernard Jones
Ontario Energy Board Mark Garner
Ontario Energy Board Hima Desai
Ontario Ministry of Energy Dr. Bryne Purchase
Ontario Power Generation Paul J. Burke
Régie de l’énergie Robert Meunier
Shell Canada Limited Larry Marks
Tembec Inc. Paul Dottori
Terasen Gas Inc. Doug Stout
TransAlta Corporation Will Bridge
TransCanada Pipelines Limited Hank Petranik
TransCanada Pipelines Limited Bill Langford
Union Gas Limited Steve Baker
Union Gas Limited Mark Isherwood
West Fraser Timber Co. Ltd. Dave Humber
WPS Energy Services, Inc. Claude Morneault