Shale gas in Canada

Growth of shale gas production in Canada

Recent discoveries of shale gas in Canada have caused a sharp increase in estimated recoverable natural gas in Canada.[1] There are a number of prospective shale gas deposits in various stages of exploration and exploitation across the country, from British Columbia to Nova Scotia.[2]

The US Energy Information Administration estimated in 2013 that there were 573 trillion cubic feet (tcf) of technically recoverable natural gas in Canada.[3]

Southern Ontario

There are three major zones identified in Ontario:[4]

While Ontario currently has 1,200 active oil wells and 1,400 active onshore and offshore natural gas wells,[4] there was no major shale gas production as of early 2011.

A campaign has begun against fracking in Ontario.[5]

Utica Shale, Quebec

The Ordovician Utica Shale in Quebec potentially holds 4×1012 cu ft (110×109 m3) at production rates of 1×106 cu ft (28,000 m3) per day[6][7] From 2006 through 2009 24 wells, both vertical and horizontal, were drilled to test the Utica. Positive gas flow test results were reported, although none of the wells were producing at the end of 2009.[8] Gastem, one of the Utica shale producers, has announced plans to explore for Utica Shale gas across the border in New York state.[9]

The Utica shale is a black calcareous shale, from 150 to 700 feet (210 m) thick, with from 3.5% to 5% by weight total organic carbon. The Utica Shale play focuses on an area south of the St. Lawrence River between Montreal and Quebec City. Interest has grown in the region since Denver-based Forest Oil Corp. announced a significant discovery there after testing two vertical wells. Forest Oil said its Quebec assets may hold as much as four trillion cubic feet of gas reserves, and that the Utica shale has similar rock properties to the Barnett shale in Texas.

Forest Oil, which has several junior partners in the region, has drilled both vertical and horizontal wells. Calgary-based Talisman Energy has drilled five vertical Utica wells, and began drilling two horizontal Utica wells in late 2009 with its partner Questerre Energy, which holds under lease more than 1 million gross acres of land in the region. Other companies in the play are Quebec-based Gastem and Calgary-based Canbriam Energy.

The US Energy Information Administration estimated in 2013 that there were 31 trillion cubic feet (tcf) of technically recoverable natural gas in the Utica Shale in Quebec.[10]

Muskwa Shale, British Columbia

The Devonian Muskwa Shale of the Horn River Basin in northeast British Columbia is said to contain 6×1012 cu ft (170×109 m3) of recoverable gas. Major leaseholders in the play are EOG Resources, EnCana Corp., and Apache Corp.[11]

The government of British Columbia announced lease proceeds for 2008 to be in excess of CDN$2.2 billion, a record high for the province, with the majority of the proceeds coming from shale gas prospects. The British Columbia government has granted royalty credits to companies for drilling and infrastructure development in the area.

The US Energy Information Administration estimated in 2013 that there were 145 trillion cubic feet (tcf) of technically recoverable natural gas in the Muskwa Shale.[12]

Montney Shale, British Columbia

The Montney Shale play is in east-central British Columbia.[13] The Montney Formation has a sandy facies in Western Alberta, where oil is produced in the Sturgeon Lakes and Saddle Hills areas. Natural gas is extracted from siltstone reservoir in the Dawson Creek and Pouce Coupe areas and gas rich silty shales occur in the northern and western fringes of the deposit.[14]

Duvernay Shale, Alberta

The Duvernay Formation is considered the source rock for the Leduc reefs light oil play. Shale gas and condensate is produced from the Duvernay Formation in central Alberta using horizontal drilling and multi-stage hydraulic fracturing.[15]

Horton Bluff Shale, Nova Scotia

In 2009, Triangle Petroleum Corporation completed two gas wells in the Horton Bluff Shale, of the Windsor Basin, Nova Scotia.[16]

The US Energy Information Administration estimated in 2013 that there were 3.4 trillion cubic feet (tcf) of technically recoverable natural gas in the Horton Bluff Shale.[17]

Frederick Brook Shale, New Brunswick

New Brunswick oil and gas exploration first began in 1859 in the Moncton sub-basin. The first efforts for commercial production in New Brunswick were in the Stoney Creek oil field, this begun in 1909. ([18])

In June 2010, Apache Canada began drilling a horizontal well to tap the Lower Carboniferous Frederick Brook Shale, near Sussex, New Brunswick. Apache is in a joint venture with Halifax-based Corridor Resources Inc., which has extensive leasehold in the province. Corridor has drilled two vertical wells that tested gas from the Frederick Brook.[19]

In 2013, Corridor Resources proposed a phased Environmental Impact Assessment (EIA) for the expansion of the McCully Field in 2013 and 2014. Phase 1 was to expand the F-67 well pad by October of 2013 and phase 2 began exploration and development by November of 2014. ([20])

Currently, the company Contact Exploration Inc., has plans to do oil and gas exploration in Salem, NB. The proposed Phased EIA is currently under review by the Government of New Brunswick. ([21])

References

  1. ↑ Carrie Tait, "Canada's natural gas resource jumps dramatically in estimates", Montreal Gazette, 13 May 2010.
  2. ↑ Kevin Heffernen, Shale gas in North America, emerging shale opportunities, PDF file, retrieved 15 April 2009.
  3. ↑ US Energy Information Administration, World shale gas, 17 May 2013.
  4. ↑ 4.0 4.1 Hamilton, Tyler (2010-03-20). "Alberta firm eyes Ontario's untapped shale gas". The Toronto Star.
  5. ↑ Stop Fracking Ontario
  6. ↑ Forest Oil Corporation - Press Releases and Notices
  7. ↑ Press release > Investors > Junex
  8. ↑ Susan R. Eaton, "Shale play extends to Canada," AAPG Explorer, January 2010, p.10-24.
  9. ↑ "New York to get Utica shale exploration". Oil & Gas Journal (PennWell Corporation) 106 (12): 41. 2008-03-24. Retrieved 2009-07-07.
  10. ↑ US Energy Information Administration, World shale gas, 17 May 2013.
  11. ↑ Alan Petzet (2008-03-24). "BC's Muskwa shale shaping up as Barnett gas equivalent". Oil & Gas Journal (PennWell Corporation) 106 (12): 40–41. Retrieved 2009-07-07.
  12. ↑ US Energy Information Administration, World shale gas, 17 May 2013.
  13. ↑ "Study analyzes nine US, Canada shale gas plays", Oil and gas Journal, 10 November 2008, p.50.
  14. ↑ "The Montney Formation". Retrieved 2011-07-27.
  15. ↑ "The Duvernay Shale". Retrieved 2012-03-04.
  16. ↑ Reuters (6 March 2009): Triangle Petroleum provides update on its Nova Scotia shale gas prospect, accessed 16 April 2009.
  17. ↑ US Energy Information Administration, World shale gas, 17 May 2013.
  18. ↑ St Peter, Oil shale and oil and natural gas in New Brunswick: historical and current industry-related activities. 2000
  19. ↑ Susan R. Eaton, "Frederick Brook Shale spurs Canadian exploration," AAPG Explorer, August 2010, p.6-10.
  20. ↑ Corridor Resources Inc. New Brunswick, Shale Gas Exploration and Potential Development
  21. ↑ GNB, Record of EIA registrations and determinations. 13 March 2015

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