Natural Gas, and Natural Gas Liquids
In 2008, 155 billion m3 (5.5 trillion cubic feet) was added to Alberta’s initial established reserves of marketable gas. This is the result of new drilling and reassessment of existing reserves. Reserve additions from new drilling alone replaced 81 per cent of production in 2008. Significant positive revisions to existing reserves contributed to a 2.7 per cent increase in the total remaining established reserves of marketable gas to 1098 billion m3 (39 trillion cubic feet) as of year-end 2008.
The number of producing gas wells has increased significantly year over year, while gas production has stabilized after reaching its peak in 2001. It now takes an increasing number of new gas wells each year to offset production declines in existing wells. This is due in part to the large number of new wells in southeastern Alberta, where well productivity is low.
New well connections were at 7907 for conventional natural gas in 2008, down 15 per cent from the previous year’s level.
At December 31, 2008, there were a total of 17 902 coalbed methane (CBM) wells and CBM well licences in Alberta. This CBM well count includes all wells completed or planned to be completed in coals. In 2008, 1926 CBM wells were added. Of the total CBM wells, 11 593 had produced or were producing by December 31, 2008. These wells may have produced from only coals or from a combination of coals and other gas zones.
In 2008, the average price of natural gas at the plant gate increased to $7.47 per gigajoule (GJ) ($7.88/thousand cubic feet). This is a 27 per cent increase over the 2007 price of $5.88/GJ ($6.20/thousand cubic feet). For 2008, the price was highest in July, at $9.84/GJ ($10.38/thousand cubic feet), and lowest in January, at $6.19/GJ ($6.53/thousand cubic feet).
In 2008, 67 per cent of Alberta’s gas was delivered to other provinces and the U.S.
