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100 Mbbl/d increase in Canadian oil sands sends condensate demand up, AECO gas prices down

Enverus

The bad news for dry gas producers is that a pivot toward condensate-directed drilling risks flooding the natural gas market with an oversupply of cheap gas. the largest source of gas in Canada, as well as select midstreamers, the companies that gather and process the gas and liquids, Rix said.

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Exploring the Future of Canadian Oil Sands and Montney Plays

Enverus

As Montney E&Ps pivot towards condensate-directed drilling, they will likely produce large quantities of associated gas. This could lead to an oversupply of cheap gas, putting downward pressure on AECO hub prices. Figure 2: Canadian bitumen, condensate and associated gas growth projections through 2030.

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