Western Canadian Output Declines,Defying Market Signals

摘要

In what was supposed to be a turnaround for gas production in Western Canada looks more likely to be another down year for supply-despite relatively robust prices at Alberta's key market hub."Canadian gas production in 2019 turned lower for the first time in half a dozen years as very weak benchmark Canadian gas prices led to a sharp reduction in drilling and wellhead shut-ins,"RBN Energy analyst Martin King said in a recent report."This year,higher prices,more drilling,and greater pipeline egress capacity were supposed to set the stage for a return of supply growth."