Test Post
Will Alberta continue to lead the way out of the western world’s economic doldrums? Even cautious forecasting says yes as Alberta is once again expected to lead the country in economic growth, a full 1.3% over the forecast national average in 2012 and 0.8% in 2013.
With the continuing low natural gas prices acting as a check on a complete return to the pre-recession boom, relatively new development will play a big role in this continued growth. The development of light tight oil prospects in Southern Alberta could be just what the service and supply industry in the south needs to counter the five year decline in shallow gas well drilling.
“Alberta’s LTO boom is nascent, but accelerating.” -Peter Tertzakian, Calgary Herald Online, March 19, 2012
No play in Southern Alberta is causing more excitement, or seeing more money spent on land sales, than the Alberta Basin Bakken. While there is potential beyond just the Bakken, it is expected to be by far the richest.
“Rosetta Resources was one of the few to report significant oil hydrocarbons in place and over‐pressured reservoirs. The company estimates that there are 13–15 million barrels of oil in place per section.” –Beating The Index, February 7th, 2011
Taking advantage of these assets requires deep wells, and therefore deep pockets. Nothing shows confidence in the short and long term future of oil and gas development in Alberta more than the number of companies willing to jump in to the early stages of this new development.
“Speaking at the recent Small Explorers and Producers Association of Canada (SEPAC) investment symposium, Bowood (Bowood Energy Inc.) president and chief executive officer Robert Mercier said he believes the Alberta Bakken has the potential to be as big as the main Bakken play in Saskatchewan and Montana.” -Oil & Gas Inquirer, March 19, 2012
With the US still uncertain and Europe positively gloomy, will Alberta’s steady growth continue? How many new players will emerge to test the water and how will they and existing companies ensure solid growth and separate themselves from the competition?
http://www.oilandgasinquirer.com/article.asp?article=magazine%5C120319%5Cmag2012_mj0000.html
http://www.beatingtheindex.com/the-alberta-bakken-oil-play/
http://blogs.calgaryherald.com/2012/03/19/alberta-up-to-bat/