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Natural gas is a naturally occurring hydrocarbon composed primarily of methane, though it may also contain varying amounts of natural gas liquids ethane, propane, butane, and pentane and non-energy components. Shale and tight gas. Natural gas energy use. The upstream gas industry is made up of several hundred companies that engage in activities such as exploration, drilling, and production of raw natural gas. Some upstream companies also own and operate gathering pipelines and field processing facilities.
The midstream natural gas industry operates natural gas processing plants, which remove impurities and natural gas liquids NGLnatural gas storage facilities, gathering pipelines, and NGL facilities. The downstream natural gas industry is made up of long haul transmission pipelines and distribution companies, also called local distribution companies LDCs.
LDCs receive gas from pipelines and then distribute it gas and energy trading inc canada consumers via extensive networks of local distribution pipelines. Conventional gas is produced from reservoirs using traditional drilling, pumping and compression techniques, whereas tight gas is found deeper below the surface in gas-rich shale rock formations and is typically produced using horizontal or directional drilling. Proved reserves are when natural gas is known to exist and is recoverable under current technological and economic conditions.
At the end ofCanada and the U. S had a total of trillion cubic feet Tcf of proved reserves of natural gas Canada: Canadian marketable resources refers to natural gas that is in a marketable condition, after the removal of impurities and after accounting for any volumes used to fuel surface facilities.
Marketable resources are recoverable using existing technologies, based on geological information, but much of the drilling necessary to produce the natural gas has not yet been performed. The United States reserves are estimated at 2, trillion gas and energy trading inc canada feet. These factors allow for consumers and distributors on either side of the border to freely access natural gas from the lowest cost supplier.
While Canadian natural gas production remained relatively flat and the number of wells drilled declined, the well productivity has increased over time. This reflects the increased use of horizontal drilling and increased well length. The number of annual completed natural gas wells in Western Canada dropped from over 12, in to 5, in From tocompleted gas well have been between and 2, per year.
The average amount of metres drilled has increased significantly from 1, in to 4, in InCanadian production was The gas and energy trading inc canada production of marketable natural gas in Canada in was Exports of natural gas have been slowly decreasing sincebut saw a slight uptake to 8. Imports rose from topeaking at 3. While the share of exports is declining, more Canadian gas was exported than consumed domestically.
InCanada exported 8. Canadian natural gas exports to the Western U. LNG exports and exports of natural gas to Mexico may create additional opportunities for Canadian natural gas producers, to address gaps in U. Natural gas imports from the U. Northeast and shorter transportation distances from these U. Shale is ultra-low permeability sedimentary rock containing natural gas.
The gas is extracted by using horizontal drilling and hydraulic fracturing. Hydraulic fracturing or fracking creates fractures in sedimentary rock formations by using pressurized water, mixed with small amounts of sand and additives, to release the natural gas. Technological advancements in drilling long-reach horizontal well bores and gas and energy trading inc canada techniques multistage hydraulic fracturing have enabled the commercial production of shale gas.
These advancements have increased the long-term prospects for the supply of natural gas in North America. Learn more about the exploration and production of shale and tight resources in Canada. Natural gas is mainly transported within extensive networks of pipelines from natural gas wells to processing plants to Canadian customers and distribution companies. There are a variety of key existing pipelines that transport natural gas across the country. The TransCanada pipeline network is a North American leader in gathering, transportation, processing, and storage of natural gas.
Some of the pipelines that are a part of this network include:. The total natural gas energy use in Canada in was 2, petajoules PJ. Natural gas has many different applications from heating to generating electricity to acting as an alternative fuel. It is used extensively in the residential, commercial, industrial, transportation and agricultural sectors. Natural gas is primarily used by provinces for electricity generation and heating gas and energy trading inc canada space and water in buildings.
Provinces with access to large amounts of hydro power electricity like Quebec tend to use less natural gas than others. Innatural gas energy use was 2, petajoules. Natural gas industry International context Canada-U. Upstream prices Shale and tight gas Transportation Natural gas energy use. Text version Conventional gas is produced from reservoirs using traditional drilling, pumping and compression techniques, whereas tight gas is found deeper below the surface in gas-rich shale rock formations and is typically produced using horizontal or directional drilling.
Text version The United States reserves are estimated at 2, trillion cubic feet. Text version The number of gas and energy trading inc canada completed natural gas wells in Western Canada dropped from over 12, in to 5, in Text version The total production of marketable natural gas in Canada in was Text version Exports of natural gas have been slowly decreasing sincebut saw a slight uptake to 8.
Text version Map showing some of the major natural gas pipelines across Canada. Text version Innatural gas energy use was 2, gas and energy trading inc canada.
Sources World production and exports: Oil and Gas Journal Canada reserves: Energy Supply and Demand Projections to Pipelines: Wells completed and metres drilled in western Canada: