The Montney Formation is the dominant formation for Canadian oil and gas production outside of the oilsands. The data below dives into the production trends, showing how the Montney keeps Canadian energy going.
Using StackDX Intel’s new “Plays” feature, let’s take a look at some interesting trends that can be observed in industry-wide Montney production data:
- Total Montney production (Figure 1) continues its upward trend over time, and is the dominant non-oilsands play in Canada from a production point of view. While the long-term trend continues higher, it’s interesting to note that total production on a monthly basis in June was actually lower than the December 2023 print. Restraint in capital budgets (likely as a result of reduced oil/condensate pricing and weak Canadian natural gas prices) has certainly seemed to slow activity levels in the play, while operators looking to increase scale have focused on growth thru acquisition rather than organic growth. A number of large M&A transactions targeting the Montney have occurred in the last 2-3 years.
- Interestingly, despite a flattening of the overall production growth trajectory in recent months, Montney oil production hit a new high in June (Figure 2).
- At over 10 BCF/d (Figure 3), the Montney is responsible for more than half of Canada’s natural gas production, and is the primary supplier of volumes for LNG feedgas. Montney gas volumes have increased by more than 3.5 BCF/d since the low point in the fall of 2020.
- Roughly 2/3 of Canadian condensate production comes from the Montney. Again the trend here has been generally higher, although condensate production has been off the last several months, with the June data point actually slightly lower than that of December 2022. Some infrastructure issues are likely partially to blame for the June print, with NuVista for one highlighting some unexpected third party midstream delays.
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Figure 1 – Total Montney Production (boe/d)
Figure 2 – Montney Oil Production (bbl/d)
Figure 3 – Montney Natural Gas Production (mmcf/d)
Figure 4 – Total Montney Condensate Production (bbl/d)
