Relevant • Independent • Objective
PAGE 1
April 2010
CERI Commodity Report - Natural Gas
CERI COMMODITY REPORT - NATURAL GAS
Editor-in-Chief: Mellisa Mei ([email protected])
CONTENTS
FEATURED ARTICLE................................................ 1
NATURAL GAS PRICES ........................................... 4
WEATHER ............................................................... 6
CONSUMPTION AND PRODUCTION ......................... 8
TRANSPORTATION .................................................10
STORAGE ................................................................12
LIQUEFIED NATURAL GAS ......................................15
DRILLING ACTIVITY................................................17
2010 INDUSTRY EVENTS ........................................19
US LNG Capacity Update
In 2007, the US Federal Energy Regulatory Commission(FERC) and the US Maritime Administration (MARAD) hadapproved the construction and operation of twenty-fiveliquefied natural gas (LNG) re-gasification projects. Anotherfourteen LNG re-gasification projects were proposed tothe FERC and the MARAD, and six were deemed potentialprojects. If all of the approved, proposed, and speculativeprojects had proceeded as planned, the US LNG importcapacity would have increased by 58.8 BCFPD to 64.6BCFPD, and exceeded the average volume of natural gasconsumed in the US last year. Logically, not all of the projectsmoved forward. In fact, only seven projects (two expansionprojects and five new LNG re-gasification facilities) havecome to fruition. Since the beginning of 2007, the numberof operating LNG re-gasification facilities has doubled, andby the end of 2010, LNG import capacity will beapproximately three times greater than that in 2007. Figure1 illustrates the locations of the ten existing LNG re-gasification facilities in the US
Figure 1: Existing US LNG Re-gasification Terminals
Source: FERC, CERI.
The advent of highly efficient drilling techniques, targetingunconventional natural gas resources, has substantiallyaltered the North American natural gas supply outlook.With proved reserves of natural gas increasing annually,the perceived need for importing large volumes of LNG tosupplement domestic natural gas production has greatlydiminished. Therefore, it may come as a surprise to manyreaders that in 2010, the list of approved, proposed, andspeculative projects, while smaller than that of 2007, stillexceeds rational expectations, given the extremely lowutilization rates that have been observed at the existingUS LNG import terminals. Today, twenty LNG re-gasificationprojects have been approved by the FERC and the MARAD(seventeen of the approved projects are currently not inthe construction phase), seven projects are beingproposed, and six projects are considered speculative. Areall of these projects needed? No, but a handful ofstrategically located LNG import terminals may still be ableto produce economic profits, and help to reduce upwardprice volatility during peak consumption periods, whichwill be necessary in order to grow US demand for naturalgas in new markets (e.g., CNG/LNG vehicles, aviation).
On March 10, the GDF Suez Neptune shuttle and re-gasification vessel (SRV) arrived at the newest US LNGimport terminal, the Neptune Deepwater Port, located offthe coast of Gloucester, Massachusetts. This facility wasthe tenth LNG import terminal to become operational inthe US, and increased the nation’s total LNG re-gasificationcapacity to 16 BCFPD.
CERI Commodity Report - Natural Gas
PAGE 2
Three additional LNG import facilities are currently underconstruction, and are expected to become operational bythe end of 2012. Approximately 91 percent of this newcapacity will be located in the US Gulf of Mexico (GOM)region, bringing the cumulative total GOM re-gasificationcapacity to 13.4 BCFPD by 2012. The LNG re-gasificationcapacity on the east coast of the US will increase slightlyin 2012, with the completion of phase two of the ElbaIsland expansion project, to 6.5 BCFPD. Figure 2 depictsthe growth in LNG re-gasification capacity, and averageannual LNG imports, between 2008 and 2012. Data forimports of LNG between 2010 and 2012 were obtainedfrom the Reference Case of the US Energy InformationAdministration’s (EIA) 2010 Annual Energy Outlook.1
Figure 2: US LNG Imports and Re-GasificationCapacity, 2008-2012
Source: EIA, FERC, US DOE.
Between January and March 2010, US LNG imports totaled139.3 BCF, or 1.6 BCFPD, with the vast majority of supplies(84 percent) landing at LNG re-gasification terminalslocated in the eastern US region. Suez LNG’s re-gasificationterminal, located in Everett, Massachusetts, has received29 percent, or 40 BCF, of the cumulative total US LNGimports this year. During the first three months of 2010,total LNG imports were 57 percent, or 50.8 BCF, higherthan LNG imports in the first quarter of 2009, and 84percent, or 63.6 BCF, higher than imports in the first quarterof 2008. Figure 3 compares the first quarter US LNG importvolumes, in addition to the average LNG import capacityutilization rates, from 2008 to 2010.
Figure 3: First Quarter LNG Import Volumes andAverage Utilization Rates, 2008-2010
Source: US DOE.
A surplus in the global LNG market has resulted in relativelyhigher US LNG imports over the past two years. Despitethe increase in LNG imports, however, utilization rates atthe existing LNG import facilities remain low because theUS LNG re-gasification capacity has grown at a much fasterrate. The average LNG import capacity during the firstquarter of 2010 was 15.2 BCFPD, up from an average of10.7 BCFPD in the first quarter of 2009, and 6.6 BCFPD inthe first quarter of 2008. Approximately 90 percent, or13.6 BCFPD, of the average US LNG import capacity in thefirst quarter of 2010 was not utilized. Between Januaryand March 2009, the total unutilized capacity was slightlyhigher, at 91 percent.
While LNG shipments to eastern US facilities haveconsistently exceeded LNG volumes shipped to the GOMregion, most of the LNG re-gasification capacity additionshave taken place in the GOM region. With the exception oftwo expansions of existing LNG facilities (Cove Point andElba Island), and the recently commissioned NeptuneDeepwater Port, all capacity expansions since 2008 havebeen located in the GOM region. Figure 4 provides abreakdown of capacity utilization rates, by region, between2008 and 2010.
Relevant • Independent • Objective
PAGE 3
Figure 4: Annual Capacity Utilization Rates byRegion, 2008-2010
Source: US DOE, EIA.
Expectations of future LNG imports will determine if thecurrent LNG re-gasification capacity will be sufficient.According to the Reference Case of the EIA’s 2010 AnnualEnergy Outlook, US annual LNG imports are projected topeak in 2021, at 1.5 TCF (4.1 BCFPD), and decline to 0.8TCF (2.3 BCFPD) in 2035.2 An alternative, high LNG casewould arise if restrictions were placed on low permeabilitygas drilling in the US, and triple the projected annual supplyof natural gas from imported LNG to 2.4 TCF (6.6 BCFPD).3
Assume, for the sake of argument, that no new LNG re-gasification facilities were constructed in the US after 2012.US LNG imports in 2021, under the EIA’s Reference Case,would imply a total utilization rate of approximately 21
percent. However, if 100 percent of the projected 4.1BCFPD of LNG imports in 2021 were to land in the USeast, the region’s capacity utilization rate would increaseto 63 percent, while the utilization rate of the GOM facilitieswould fall to zero. In 2035, with the US LNG import capacityheld constant at 2012 levels, the US re-gasification facilitiesin the GOM region could absorb all of the EIA’s projectedLNG imports, under the high LNG scenario, and the capacityutilization rate in the region would still remain below 50percent. Conversely, the eastern US LNG re-gasificationfacilities, operating at 100 percent capacity, could onlyaccommodate 98 percent of the EIA’s projected LNGimports, under the high LNG case.
Of the thirty approved (not under construction), proposed,and potential LNG re-gasification projects, totaling 42.7BCFPD, only a small fraction will be constructed. Offshorefacilities, particularly those that are located in the easternand western US regions, will have a relatively higherprobability of success.
Endnotes
1US EIA 2010 Annual Energy Outlook, Year-by-YearReference Case Tables (2007-2035), May 11, 2009, http://www.eia.doe.gov/oiaf/aeo/aeoref_tab.html, Accessed onMay 11, 2010.2Ibid.3Ibid
CERI Commodity Report - Natural Gas
PAGE 4
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Relevant • Independent • Objective
PAGE 5
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CERI Commodity Report - Natural Gas
PAGE 6
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Relevant • Independent • Objective
PAGE 7
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CERI Commodity Report - Natural Gas
PAGE 8
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Relevant • Independent • Objective
PAGE 9
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CERI Commodity Report - Natural Gas
PAGE 10
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Relevant • Independent • Objective
PAGE 11
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CERI Commodity Report - Natural Gas
PAGE 12
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ease
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om 8
3 B
CF
in
Mar
ch to
90
BC
F at
the
end
of A
pril.
0
100
200
300
400
500
600
700
Apr
-09
Jun-
09A
ug-0
9O
ct-0
9D
ec-0
9Fe
b-10
Apr
-10
East
Wes
t
Can
adia
n S
tora
ge b
y R
egio
nB
CF,
Mon
th E
nd
0
500
1,00
0
1,50
0
2,00
0
2,50
0
3,00
0
3,50
0
4,00
0
4,50
0
JF
MA
MJ
JA
SO
ND
5-Ye
ar A
vg.
2009
2010
BC
F, M
onth
End
US
Low
er-4
8 W
orki
ng G
as S
tora
ge
0
500
1,00
0
1,50
0
2,00
0
2,50
0
3,00
0
3,50
0
4,00
0
Apr
-09
Jun-
09A
ug-0
9O
ct-0
9D
ec-0
9Fe
b-10
Apr
-10
Prod
ucin
g Re
gion
Wes
tEa
st
BC
F, M
onth
End
US
Sto
rage
by
Reg
ion
Relevant • Independent • Objective
PAGE 13
SOU
RCE
: C
ERI,
Pla
tts
Gas
Dai
ly.
SOU
RCE
: C
ERI,
Pla
tts
Gas
Dai
ly.
SOU
RCE
: C
ERI,
Pla
tts
Gas
Dai
ly.
-100-8
0
-60
-40
-20020406080
JF
MA
MJ
JA
SO
ND
WC
_IJ_
WD
5-Ye
ar A
vg.
2009
2010
BC
F, M
onth
EndW
este
rn C
anad
a S
tora
ge
Inje
ctio
ns/W
ithd
raw
als
-80
-60
-40
-20020406080
JF
MA
MJ
JA
SO
ND
5-Ye
ar A
vg.
2009
2010
Eas
tern
Can
adi
an S
tora
ge
Inje
ctio
ns/W
ithd
raw
als
BC
F, M
onth
End
-150
-100-5
0050100
150
JF
MA
MJ
JA
SO
ND
5-Ye
ar A
vg.
2009
2010
Can
adia
n S
tora
ge
Inje
ctio
ns/W
ithd
raw
als
BC
F, M
onth
End
Nor
th A
mer
ican
Sto
rage
•Hig
her
than
norm
alna
tura
lga
sst
orag
ein
vent
orie
sin
Can
ada
and
the
US
are
supp
ortin
gex
pect
atio
nsof
low
gas
pric
es.
•Can
adia
nw
orki
ngga
sst
orag
evo
lum
esin
crea
sed
from
273.
2B
CF
inM
arch
to32
3.6
BC
Fin
Apr
il,39
perc
ent,
or90
BC
Fab
ove
the
five-
year
aver
age.
•Net
inje
ctio
nsin
tow
este
rnan
dea
ster
nC
anad
ian
stor
age
wer
e42
perc
ent
and
30pe
rcen
tgre
ater
than
the
five-
year
aver
ages
,res
pect
ivel
y.•A
sof
Apr
il30
,C
anad
ian
unde
rgro
und
stor
age
was
48pe
rcen
tfu
ll,co
mpa
red
36pe
rcen
tatt
heen
dof
Apr
il20
09,a
nd27
perc
enta
tthe
end
ofA
pril
2008
.•W
orki
ngga
sin
US
unde
rgro
und
stor
age
tota
led
1,99
5B
CF,
and
exce
eded
the
five-
year
aver
age
by22
perc
ent.
•With
the
exce
ptio
nof
Apr
il20
06,
stor
age
leve
lsha
veno
tty
pica
llyin
crea
sed
abov
e1,
900
BC
Fun
tilth
ese
cond
mon
thof
the
inje
ctio
nse
ason
.•D
urin
gth
em
onth
ofA
pril,
net
inje
ctio
nsin
toU
Sst
orag
eto
tale
d45
6B
CF,
111
perc
entg
reat
erth
anth
ein
ject
ions
mad
ela
stye
ar,a
nd12
3pe
rcen
tgre
ater
than
the
five-
year
aver
age.
•The
incr
ease
inst
orag
ein
vent
orie
sin
the
US
prod
ucin
gre
gion
acco
unte
dfo
r46
perc
ento
ftot
alin
ject
ions
into
US
unde
rgro
und
stor
age,
whi
lead
ditio
nsto
stor
age
inth
ew
este
rnan
dea
ster
nco
nsum
ing
regi
ons
wer
ere
spon
sibl
efo
r43
perc
enta
nd11
perc
ento
ftot
alU
Sna
tura
lgas
inje
ctio
ns,r
espe
ctiv
ely.
CERI Commodity Report - Natural Gas
PAGE 14
SOU
RCE
: C
ERI,
Pla
tts
Gas
Dai
ly.
SOU
RCE
: C
ERI,
Pla
tts
Gas
Dai
ly.
SOU
RCE
: C
ERI,
Pla
tts
Gas
Dai
ly.
SOU
RCE
: C
ERI,
Pla
tts
Gas
Dai
ly.
-100-8
0
-60
-40
-20020406080100
JF
MA
MJ
JA
SO
ND
5-Ye
ar A
vg.
2009
2010
US
Wes
tern
Con
sum
ing
Reg
ion
Sto
rage
In
ject
ions
/Wit
hdra
wal
sB
CF,
Mon
th E
nd
-700
-500
-300
-10010
0
300
500
JF
MA
MJ
JA
SO
ND
5-Ye
ar A
vg.
2009
2010
US
Eas
tern
Sto
rage
B
CF,
Mon
th E
nd
-250
-200
-150
-100-5
0050100
150
200
JF
MA
MJ
JA
SO
ND
5-Ye
ar A
vg.
2009
2010
US
Pro
duci
ng R
egio
n S
tora
ge
BC
F, M
onth
End
-100
0
-800
-600
-400
-2000
200
400
600
800
JF
MA
MJ
JA
SO
ND
5-Ye
ar A
vg.
2009
2010
US
Sto
rage
In
ject
ions
/Wit
hdrw
als
BC
F, M
onth
End
Relevant • Independent • Objective
PAGE 15
SOU
RCE
: U
.S.
DO
E.SO
URCE
: U
.S.
DO
E.
SOU
RCE
: U
.S.
DO
E.SO
URCE
: U
.S.
DO
E.
024681012141618202224
Mar
-09
May
-09
Jul-0
9Se
p-09
Nov
-09
Jan-
10M
ar-1
0
Cov
e Po
int
Elba
Isla
ndEv
eret
tN
E G
atew
ayN
eptu
ne
Eas
tern
US
LN
G I
mpo
rts
By
Faci
lity
BC
F
024681012141618202224
Mar
-09
May
-09
Jul-0
9Se
p-09
Nov
-09
Jan-
10M
ar-1
0
Gul
f Gat
eway
Free
port
Lake
Cha
rles
Sabi
ne P
ass
Cam
eron
US
GO
M L
NG
Im
port
s B
y Fa
cilit
yB
CF
0510152025303540
Mar
-09
May
-09
Jul-0
9Se
p-09
Nov
-09
Jan-
10M
ar-1
0
Egyp
tN
iger
iaTr
inid
adNo
rway
Qat
ar
BC
F
US
LN
G I
mpo
rts
By
Ori
gin
Impo
rts
from
Trin
idad
an
d Eg
ypt
acco
unte
d fo
r 74
perc
ent o
f tot
al
LNG
impo
rts
in M
arch
.
02468101214
JF
MA
MJ
JA
SO
ND
2008
2009
2010
Vol
ume-
Wei
ghte
d A
vera
ge L
NG
Pri
ceV
olum
e-W
eigh
ted
Ave
rage
LN
G P
rice
US$
/MM
Btu
CERI Commodity Report - Natural Gas
PAGE 16
SOU
RCE
: E
IA,
U.S
. D
OE.
SOU
RCE
: U
.S.
DO
E.
01234567
Mar
-09
May
-09
Jul-0
9Se
p-09
Nov
-09
Jan-
10M
ar-1
0
US
LN
G E
xpor
ts t
o Ja
pan
BC
F
Sinc
e M
arch
200
9, C
onoc
oPhi
lips
and
Mar
atho
n O
il ha
ve jo
intly
exp
orte
d al
mos
t one
third
of t
he v
olum
e au
thor
ized
und
er th
e ex
istin
g 2
year
exp
ort l
icen
se.
An
appl
icat
ion
to e
xten
d th
e ex
port
lice
nse
to 2
013
will
be
filed
with
the
US
DO
E in
Jun
e 20
10.
01234567
Mar
-09
May
-09
Jul-0
9Se
p-09
Nov
-09
Jan-
10M
ar-1
0
Con
ocoP
hilli
psM
arat
hon
US
LN
G E
xpor
tsB
y E
xpo
rter
BC
F
LNG
Im
port
ers
in 2
010
Can
adia
n LN
G Im
port
ers
in 2
010
(As
of
Febr
uary
28,
201
0)
Com
pany
Volu
me
(BC
F)
% o
f Tot
al
LNG
Im
ports
Rep
solE
nerg
y C
anad
a Lt
d.20
.610
0To
tal
20.6
100
U.S
. LN
G Im
port
ers
in 2
010
(As
of M
arch
31,
20
10)
Com
pany
Volu
me
(BC
F)
% o
f Tot
al
LNG
Im
port
sB
G L
NG
Ser
vice
s31
.422
.5D
istr
igas
41.1
29.5
Exc
eler
ate
14.7
10.5
Stat
oil
20.5
14.7
BP
Ene
rgy
Com
pany
8.8
6.3
Tota
l Gas
& P
ower
15.6
11.2
Sem
pra
LNG
Mar
ketin
g4.
23.
0S
hell
NA
LNG
3.0
2.2
Tota
l13
9.3
100.
0
LNG
Shi
pper
s in
201
0
LNG
Shi
pper
s to
the
U.S.
in 2
010
(As
of M
arch
31,
201
0)
Com
pany
Volu
me
(BCF
)%
of T
otal
LN
G
Ship
men
tsAt
lant
ic L
NG
2/3
Com
pany
5.3
3.8
Atla
ntic
LNG
Com
pany
11.7
8.4
ELNG
/BG
GM
20.4
14.6
Gas
Nat
ural
Apr
ovis
iona
mie
ntos
10.0
7.2
Atla
ntic
LNG
8.8
6.3
Nig
eria
LN
G L
imite
d2.
61.
8PF
LE2.
92.
1Tr
inlin
g5.
64.
0Sh
ell E
aste
rn L
NG
3.0
2.2
GDF
Sue
z14
.110
.1R
asG
as7.
05.
0Q
atar
Liq
uefie
d G
as C
ompa
ny
Lim
ited
(II)
9.3
6.7
Ras
Laf
fan
2.8
2.0
Stat
oil A
SA, R
WE-
Dea
Nor
ge A
S,
Hes
s N
orge
AS
5.8
4.2
BG G
as M
arke
ting
Ltd
12.1
8.7
Stat
oil A
SA11
.78.
4Ye
men
LN
G C
ompa
ny L
td.;
TOTA
L G
as &
Pow
er L
td.
6.3
4.6
Tota
l13
9.3
100.
0
SOU
RCE
: U
.S.
DO
E.SO
URCE
: U
.S.
DO
E.
Relevant • Independent • Objective
PAGE 17
SOU
RCE
: C
ERI,
CAO
DC,
Bak
er H
ughe
s.SO
URCE
: C
ERI,
CAO
DC.
SOU
RCE
: C
ERI,
CAO
DC.
SOU
RCE
: C
ERI,
CAO
DC.
0
500
1,00
0
1,50
0
2,00
0
2,50
0
3,00
0 Jan-
02Ja
n-03
Jan-
04Ja
n-05
Jan-
06Ja
n-07
Jan-
08Ja
n-09
Jan-
10
WCS
BUS
Nor
th A
mer
ica
n A
ctiv
e R
igs
Rig
s
0
100
200
300
400
500
600
700
800
900
1,00
0 Jan-
02Ja
n-03
Jan-
04Ja
n-05
Jan-
06Ja
n-07
Jan-
08Ja
n-09
Jan-
10
Act
ive
Rig
sTo
tal R
ig D
rillin
g Fl
eet
Can
adia
n R
ig F
leet
Uti
lizat
ion
Wee
kly
Ave
rag
e A
ctiv
e R
igs
Rig
s
0
100
200
300
400
500
600
700 Ja
n-08
Mar
-08
Jun-
08Se
p-08
Dec
-08
Mar
-09
Jun-
09Se
p-09
Dec
-09
Mar
-10
BCAB
SK
WC
SB
Act
ive
Rig
s by
Pro
vinc
eW
eekl
y A
vera
ge
Rig
s
-
100
200
300
400
500
600
700
800
15
913
1721
2529
3337
4145
49
5-Ye
ar A
vg.
2009
2010
Wes
tern
Can
ada
Act
ive
Rig
sW
eekl
y A
vera
ge
Rig
s
Wee
k N
umbe
r
CERI Commodity Report - Natural Gas
PAGE 18
SOU
RCE
: C
ERI,
Bak
er H
ughe
s.SO
URC
E:
CERI
, Ba
ker
Hug
hes.
SOU
RCE:
CE
RI,
Bake
r H
ughe
s.
0
500
1,00
0
1,50
0
2,00
0
2,50
0 Jan-
02Ja
n-03
Jan-
04Ja
n-05
Jan-
06Ja
n-07
Jan-
08Ja
n-09
Jan-
10
Ons
hore
Gas
-Dir
ecte
dG
OM
Gas
-Dir
ecte
dTo
tal O
il-D
irec
ted
Rig
s
US
Tot
al A
ctiv
e R
igs
0 20
40
60
80
100
120
140 Ja
n-02
Jan-
03Ja
n-04
Jan-
05Ja
n-06
Jan-
07Ja
n-08
Jan-
09Ja
n-10
Oil-
Dire
cted
Gas
-Dir
ecte
d
US
Gul
f of
Mex
ico
Act
ive
Rig
sR
igs
0%10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
200
400
600
800
1,00
0
1,20
0
1,40
0
1,60
0
1,80
0
2,00
0
2,20
0 Jan-
02Ja
n-03
Jan-
04Ja
n-05
Jan-
06Ja
n-07
Jan-
08Ja
n-09
Jan-
10
Oil-
Dir
ecte
dG
as-D
irec
ted
Gas
-Dir
ecte
d %
US
Tot
al A
ctiv
e R
igs
Rig
s
Rel
ativ
ely
high
oil
pric
es c
ontr
ibut
ed to
a
143
perc
ent y
ear-
over
-yea
r gr
owth
rate
in
oil-d
irect
ed ri
g ac
tivity
. The
ave
rage
nu
mbe
r of g
as-d
irect
ed ri
gs in
crea
sed
by
24 p
erce
nt o
ver
the
sam
e pe
riod.
Nor
th A
mer
ican
Rig
Act
ivit
y
•Dur
ing
the
first
four
mon
ths
of20
10,t
heav
erag
eW
CS
Brig
utili
zatio
nra
tew
as44
perc
ent,
upfro
m30
perc
entd
urin
gth
esa
me
perio
din
2009
.•C
ompa
red
toth
efir
stfo
urm
onth
sof
2009
,rig
activ
ityin
the
WC
SB
has
incr
ease
dby
anav
erag
eof
99rig
s,w
ithA
lber
taac
coun
ting
for
68pe
rcen
toft
heto
tali
ncre
ase.
•An
aver
age
of12
9rig
sw
ere
oper
atin
gin
the
WC
SB
durin
gth
em
onth
ofA
pril.
•Mon
thly
aver
age
WC
SB
utiliz
atio
nra
tes
expe
rienc
eda
decl
ine
from
44pe
rcen
tin
Mar
chto
16pe
rcen
tin
Apr
il,bu
tre
mai
ned
7pe
rcen
tab
ove
utiliz
atio
nra
tes
reco
rded
inth
epr
evio
usye
ar.
•Man
itoba
had
the
larg
est
perc
enta
gede
clin
ein
rigac
tivity
durin
gth
em
onth
ofA
pril,
with
the
aver
age
num
ber
ofop
erat
ing
rigs
fallin
gby
92pe
rcen
t.•In
Apr
il,th
eav
erag
enu
mbe
rof
rigs
oper
atin
gin
Alb
erta
and
Sas
katc
hew
ande
clin
edby
158
and
34,r
espe
ctiv
ely.
•InA
pril,
anav
erag
eof
1,47
9rig
sw
ere
oper
atin
gin
the
US
.•M
onth
-ove
r-m
onth
,gas
-dire
cted
rigac
tivity
inth
eU
Sin
crea
sed
by3
perc
ent,
oran
aver
age
of26
rigs,
to95
9rig
s.•T
hein
crea
sing
num
ber
ofon
-sho
rerig
sw
asre
spon
sibl
efo
r97
perc
ent
ofth
eto
talc
hang
ein
gas-
dire
cted
rigac
tivity
.
Relevant • Independent • Objective
PAGE 19
2010 Industry Events Calendar
For further information on these conferences, visit our website at www.ceri.caTo register, contact Capri Gardener at [email protected] or 403-220-2380
CERI 2010 Petrochemical Conference“Growing Alberta’s Competitiveness”
As the first signs of an economic recovery start to materialize and the survivors start ramping up production, will themarket be the same as before or has the game changed? Alberta’s gas industry is still in the doldrums and NGL supplyis declining as a result of declining gas production, precipitated by soft market prices. On the horizon is the growingpotential for the Marcellus shale gas play in the US to become a significant NGL supplier to the Sarnia area, which hasbeen one of Alberta’s long-time markets. Feedstock issues, the unknown elements of climate change policy, and thelong-term issue of Industry competitiveness are all issues that are extremely important to both Government andIndustry.
Delta Lodge at Kananaskis, AlbertaJune 6-8, 2010