Canadian Reserves Not Up to Par

Western Canada's reserves are not what they used to be. Moreover, new reserves on the Canadian East Coast and elsewhere are not developed enough to make up the shortfall in what U.S. gas users expect, says Len Coad, writing in Natural Gas Industry Analysis (For the Gas Year 2000-2001). Coad is vice president of North American natural gas and electricity for Canadian Energy Research Associates, in Calgary, Alberta.

"Most forecasts show Canadian gas consumption rising at a steady 1.5 percent to 3 percent a year and show exports of Canadian gas rising from approximately 3 trillion cubic feet a year today to something at or above 4 trillion cubic feet a year by 2010," says Coad. In order to meet these requirements, Canadian gas production would need to increase by 3 billion cubic feet a day over the 10-year period, he says.