Natural Gas Is A Pillar Of Canada's Energy Resources Landscape

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Natural gas is a pillar in Canada’s energy resources landscape. Industry reports (IBISWorld) indicate that the oil and gas industries (e.g., gas extraction, gas field services, natural gas distribution) in Canada are expected to generate revenues of over $56.4bn in 2015. The Canadian Energy Research Institute projects Western Canada’s natural gas sector to add $2.3tn to Canada’s GDP between 2015 and 2035. While, sales are projected to generate $1.4tn in sales and $400bn in taxes, as well as attract over $450bn in capital investments over the next 20 years. Currently, it is estimated that shale gas contributes to 15% of Canada’s natural gas production and is growing. The National Energy Board estimates this to be 28% by 2035. Economic benefits of the natural gas industry are intimately tied to the market price of natural gas – which historically, has demonstrated high volatility. Recently the price for oil and gas has plummeted. While natural gas supplies steadily accumulated in the US, Canada’s main export market, decreasing revenue and profits. This has resulted in consolidation of oil and gas companies, loss in jobs, and delay/cancelling of new projects (e.g., LNG projects on BC’s coast). Given this financial context, the Canadian gas industry needs to streamline their operations (i.e., increase efficiency and productivity) and explore alternative markets by, perhaps, moving methane up the value chain and creating value-added products (i.e., petrochemicals). Moreover, the
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