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Lower Alberta royalties and declining costs are restoring the competitiveness of some natural gas fields in Western Canada, the CEO of EnCanaCorp. said yesterday.
While Western Canadian gas struggled in recent years to measure up against massive shale discoveries in the United States, like the Barnett Shale in Texas and the Haynesville in Louisiana, Randy Eresman said those conditions are changing in Western Canada`s favour.
"There are and have been certain challenges historically being in Canada, with a higher overall cost structure and challenges often times with rapid changes in exchange rates, and the access to supplies and services," Mr. Eresman told analysts in a conference call.
"That situation has largely been reduced right now. We are seeing significant opportunities arise in Western Canada. The royalty structure that the Alberta government [put in place] works in our favour today, so there are plays that are actually becoming more competitive compared to the U. S."
EnCana, Canada`s largest natural gas producer, has been an aggressive developer of new shale opportunities in the United States.
Mr. Eresman said drilling results in the Horn River shale gas play in northern British Columbia have been so encouraging it`s emerging as one of EnCana`s top assets.
Read the full article here.
While Western Canadian gas struggled in recent years to measure up against massive shale discoveries in the United States, like the Barnett Shale in Texas and the Haynesville in Louisiana, Randy Eresman said those conditions are changing in Western Canada`s favour.
"There are and have been certain challenges historically being in Canada, with a higher overall cost structure and challenges often times with rapid changes in exchange rates, and the access to supplies and services," Mr. Eresman told analysts in a conference call.
"That situation has largely been reduced right now. We are seeing significant opportunities arise in Western Canada. The royalty structure that the Alberta government [put in place] works in our favour today, so there are plays that are actually becoming more competitive compared to the U. S."
EnCana, Canada`s largest natural gas producer, has been an aggressive developer of new shale opportunities in the United States.
Mr. Eresman said drilling results in the Horn River shale gas play in northern British Columbia have been so encouraging it`s emerging as one of EnCana`s top assets.
Read the full article here.