There has been an astounding shift from conventional to unconventional oil and gas in Western Canada over the past 6 years, explains David Austin in a recent Business in Vancouver article.
David explains that “This isn’t about total Canadian production increasing; it’s about a shift in where the total Canadian production is coming from,” as most new gas production is coming out of the Montney formation, which straddles the BC-Alberta border, in contrast to mainly Alberta’s oilsands.
Additionally, the oil industry is growing in BC. According to the BC Oil and Gas Commission, BC is now producing more oil than condensate: 26,800 barrels of oil/day, compared with 16,560 barrels of condensate/day.
The article also cites Canadian energy expert Peter Tertzakian, who addressed the CFA Society Vancouver last week: “Alberta’s oilsands are yesterday’s news, some of the Canadian oil pipelines that have been approved won’t get built, and the smart money in energy stocks is shifting from Fort McMurray to Fort St. John.”
The article goes on to explain, “As if to underscore Tertzakian’s oilsands point, on March 9, Royal Dutch Shell plc and Marathon Oil Corp. (NYSE:MRO) both announced oilsands divestments.”