Natural gas production in Western Canada has been extremely robust as part of a gradual upward push underway since late 2024. This reached its most recent zenith with record output of 20 Bcf on April 13 (blue text and arrow in chart below) as reported in RBN’s Canadian NatGas Billboard and surpasses previous daily highs around 19.7 Bcf set in late December and mid-January.
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- Blog
Burning Down the House - Wildfires, Pipeline Maintenance Punish Western Canadian Gas Production
Western Canada’s natural gas production has been on a roll in the past couple of years, reaching a record 17.3 Bcf/d in 2022. Another year of strong growth was expected in 2023, but Mother Nature had other plans — as usual. First, a milder-than-average heating season left plenty of gas in storage, pushing natural gas prices lower across North America. Second, tinder-dry conditions in some of the best gas production areas in Alberta and British Columbia sparked what so far has been a very active wildfire season — and forced producers to curtail their gas output numerous times in May and June. From our early expectations for production growth of 1.2 to 1.4 Bcf/d this year, the impacts from wildfires and a healthy dose of pipeline maintenance has chopped our 2023 production growth outlook to just 0.4 Bcf/d. As we discuss in today’s RBN blog, this slowdown in growth is exactly the opposite of what’s needed to avoid a runup in prices. Strong production momentum will be required into 2024 and 2025 to deal with the startup of the LNG Canada export facility, ongoing Canadian gas demand growth and pipeline exports to the U.S.
- Analyst Insight
Spring in its Step – Western Canada’s Natural Gas Sets a New Production Record for April
A new record was set for Western Canada's April gas production at 19.1 Bcf/d and the fourth highest monthly average. Production remains robust ahead of the start up of LNG Canada.
- Blog
I Can't Help Myself - Why Western Canada's Natural Gas Production Has Been Hitting Multi-Year Highs
With natural gas prices reaching levels not seen in seven years, Western Canada is doing all it can to help increase gas supply, with recent data showing monthly production hitting multi-year highs. Moreover, Canadian forward gas prices are at the highest levels since 2014, gas pipeline expansions are in place or being constructed to accommodate future supply expansion, and gas-focused drilling activity remains strong — all of which may as well be a prescription for sending gas production to record levels later this year and in 2022. In today’s RBN blog, we provide an update on the recent gas production growth in Alberta and neighboring provinces and why more growth is coming.
