Natural Gas exploration on the rebound
Posted Apr 9, 2011 8:30 am.
This article is more than 5 years old.
Alberta has reclaimed its lost crown in natural gas exploration.
That’s according to the Globe & Mail which notes in 2008, British Columbia overtook Alberta for the first time with the sale of new exploration rights.
But this year in three auctions, B.C. has collected a measly $17 million. Meantime, Alberta, stung by the controversy in the change of royalty rates a few years ago has already collected $777 million and is on pace for in excess of $2 billion for the year.
It would be the second consecutive year of $2 billion or more in land sales in this province.
Industry experts say there are basically two reasons for the return of exploration dollars to Alberta from British Columbia.
Alberta offers new oil plays in addition to natural gas. On the otherhand, B.C. offers almost exclusively natural gas plays and the price of that commodity continues to languish.
The other reason: plays in British Columbia are in distant, rugged, remote terrain that are difficult to access.
