The transitory and unpredictable nature of the oil patch is well-known. But even by “normal” standards, the breadth and strength of forces that are currently reshaping Canada’s oil and gas sector are enormous.
Against this backdrop, Canadian producers are preparing for 2011.
Natural gas working inventories have reached more than 3.8 tcf, which is about the same as last year’s record-setting level for the underground storage quantity at the end of October. The EIA expects the Henry Hub natural gas spot price to average US$4.35 per mmBtu for 2010, falling to $4.31 per mmBtu in 2011. For producers weighted to crude oil, therefore, there’s a continuation of stable prices. Many are using the combination of horizontal drilling and multi-stage fracing to unlock new resource plays or revitalize older fields.
This document — highlighting some of the key trends we see occurring in the oil and gas industry — is co-published by PwC and JuneWarren-Nickle’s Energy Group as part of our Energy Visions program, a series of publications and events that provide context around the issues affecting the oil and gas sector.