Natural Gas Resources in Canada

Abstract

Natural gas is an important component in many of the technologies aimed at reducing greenhouse gas emissions. In order to understand the role that natural gas can play, it is important to know how much may be present, where it is, when can it be accessed and at what cost. The Canadian Gas Potential Committee has completed its second report 'Natural Gas Potential in Canada - 200 I ' (CGPC, 200 I). This comprehensive study of exploration plays in Canada addresses the two issues of 'how much may be present' and 'where is it' . The Report deals with both conventional gas and non-conventional gas. One hundred and seven Established Conventional Exploration Plays, where discoveries of gas exist, have been assessed in all of the sedimentary basins in Canada. In addition, where sufficient infonnation was available, twelve Conceptual Exploration Plays, where no discoveries have been made, were assessed. Sixtyfive other Conceptual Plays were described and qualitatively ranked. An experienced volunteer team of exploration professionals conducted assessments of undiscovered gas potential over a four-year period. The team used technical judgment, statistical techniques and a unique peer review process to make a comprehensive assessment of undiscovered gas potential and estimates of the size of individual undiscovered gas accumulations. The Committee assessed all gas in place in individual exploration plays. For Established Plays, estimates of Undiscovered Nominal Marketable Gas are based on the percentage of the gas in place that is marketable gas in the discovered pools in a play. Not all of the Nominal Marketable Gas will be available. Some underlies areas where exploration is not possible, such as parks, cities and other closed areas. Some will be held in gas pools that are too small to be economic and some of the pools will never be found. In some areas no production infrastructure will be available. Detailed studies of individual exploration plays and basins will be required to detennine how much of the estimated Nominal Marketable Gas will actually be available. Gas assessments were made in five assessment regions; Western Canada, Northern Canada, Eastern Canada, Central Canada, and West Coast and Interior. Each of these regions is blessed or cursed with its geological characteristics, and physical and environmental challenges that will impact the volume of gas that may be available. Non-conventional gas resources include coalbed methane, tight gas, shale gas and gas hydrates. These present unique issues when attempting to predict how much gas may be available. The volumes of gas in place are impressively large. Technological advances will be required to extract gas from non-conventional sources at rates and costs that are attractive to investors. Assessments of gas potential made by the Canadian Gas Potential Committee were reviewed in context with other resource estimates that are used by the National Energy Board. The vintage of analyses, treatment of exploration risk and prospect definition account for most of the differences between assessments. These have important implications concerning the volume and timing of gas supplies that may be available in Canada.