Cdn Regulator Puts Duvernay Shale Gas Resource at 12 trillion ft3
Canada’s National Energy Board (NEB), the country’s federal energy regulator, assessed the economic potential of the Duvernay shale gas play at some 12 trillion ft3 in a research brief released December 1.
The Duvernay shale play – productive for crude oil, natural gas and natural gas liquids (NGL) – covers a broad swath of the west central portion of the province of Alberta, from east of Red Deer northwest to Grande Prairie.
For 2017, at a natural gas price of $2.50/GJ, the NEB estimated the Duvernay’s economic natural gas resource at 11.98 trillion ft3.
Should well costs continue to fall, however, and with just a modest increase next year in the average price of gas, to $3.00/GJ, the 2018 resource estimate jumps to nearly 33 trillion ft3, the NEB said.
And while the resource potential of the Duvernay is particularly sensitive to well costs, there are some areas where the natural gas resource remains economic even at negative gas prices, which were seen at times this past year.
“This indicates that, in those areas, companies earn enough revenue from the oil and NGL production from a well that they can lose money on the natural gas production and still make a profit,” the report said.