Updated June 2024
Within this section
Highlights
Production: Although natural gas prices were lower during 2023, production of marketable natural gas increased to 315.0 million cubic metres per day (106 m3/d) or 11.2 billion cubic feet per day (Bcf/d), a 1.9% increase from 2022. Higher production of conventional, tight, shale gas, and gas from oil wells drove the increase, while coalbed methane production declined.
By 2033, marketable production is anticipated to grow to 326.7 106 m3/d (11.6 Bcf/d). Increasing 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 2023 slightly decreased by 3% to 921. A significant decline in natural gas prices, a lower residential and commercial demand due to the mild winter weather, and higher inventories in 2023 resulted in fewer new wells placed on production.
The number of new wells per year is expected to increase over the forecast. By 2033, 1140 new gas wells are expected to be placed on production. Most of the new wells will be horizontal multistage fractured wells targeting high-productivity, liquids-rich formations in the western regions of Alberta (Foothills Front and Northwestern Alberta), and shale gas.
Demand: Alberta’s demand for natural gas was estimated at 190.4 106 m3/d (6.8 Bcf/d) in 2023 (about 60% of its marketable gas production). Demand in 2023 increased by 2.3% from 2022 due to higher demand from the oil sands and petrochemical sectors.
Alberta’s gas demand is forecast to be around 67% of its marketable gas production in 2033. Demand is anticipated to grow 16% by 2033, with growth primarily expected from the oil sands, electricity generation, and commercial sectors.
