Updated June 2023
Within this section
Highlights
Production: With higher natural gas prices, marketable production of natural gas increased in 2022 to 309.1 million cubic metres per day (106 m3/d) or 11.0 billion cubic feet per day (Bcf/d), a 6.7 per cent increase from 2021. Higher conventional and tight gas production drove the increase, while coalbed methane and shale gas production declined.
By 2032, marketable production is anticipated to grow to 341.5 106 m3/d (12.1 Bcf/d). Rising output from the Petroleum Services Association of Canada (PSAC) areas of Foothills Front (including shale gas) and Northwestern Alberta will more than offset declines in production levels across the rest of the province.
Number of wells: The number of new wells placed on production in 2022 increased by 18 per cent to 950. A significant growth in natural gas and natural gas liquids prices and the quick demand recovery in 2022 resulted in solid growth in capital spending and new wells placed on production.
The number of new wells per year is expected to increase over the forecast. By 2032, 1155 new gas wells are anticipated to be on production. Most will be horizontal multistage fractured (HMSF) wells targeting high-productivity, liquids-rich formations in the western regions of Alberta (Foothills Front and Northwestern Alberta).
Demand: Alberta’s demand for natural gas was estimated at 194.7 106 m3/d (6.9 Bcf/d) in 2022 (about 63 per cent of its marketable gas production). Demand in 2022 increased by 6.2 per cent from 2021, which also experienced a solid increase in demand.
Alberta’s gas demand is forecast to be 64 per cent of its marketable gas production volumes in 2032. Demand levels are anticipated to grow 13 per cent by 2032, with growth primarily expected from the oil sands and electricity generation sectors.