The production and sale of energy and mineral resources are major components of Canada’s economy. However, we consistently fail to realize the full potential of these sectors of our economy because we fail to get world prices for our products.
The development of horizontal drilling and multi-stage fracturing has led to a rapid growth of unconventional crude oil, natural gas and NGL production in North America. Many producers pursue Light, Tight Oil plays which often come with large quantities of rich associated gas. Consequently, North America has a large surplus of all hydrocarbon products. U.S. exports of crude oil, LNG and NGL to world markets have grown rapidly in recent years. Yet, to date, Canada continues to push all of its hydrocarbon exports into the already well supplied U.S. market. This is not a recipe for success.
The U.S. Gulf Coast is home to over U.S.$200 billion of investment in LNG, LPG and petrochemical infrastructure. Canada is finally nearing completion of its first waterborne NGL terminal. Canada has one PDH/PP project underway in Alberta while another PDH/PP project and an LNG project are proceeding to FID (hopefully).
What does all this mean for the future of the petroleum industry in Western Canada?
For more discussion, attend a presentation by Gerry Goobie, Principal at Goobie Tulk Inc., September 13, 2018 at 11:15am to 1:00pm at the Calgary Petroleum Club discussing “The Outlook for Western Canadian NGL and Petrochemical Projects”
Tickets $50.00 (+GST) and $60.00 (+GST)
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