Natural Gas: North American Outlook ///

The following North American report on natural gas supply / demand and related factors starts with a review of U.S. supply, including effects of: wellhead prices; expected gas-directed exploration / development drilling; production / reserve levels; plus effects of North Slope gas, coalbed methane and imports. Further discussion of U.S. demand includes effects of weather and industrial use, storage, pipeline building plans and federal security measures. Canadian production and reserve status / location are reviewed, noting that the Western Canada Sedimentary basin remains the main supply source. Exports to the U.S. will be about two-thirds of its 6 Tcf production this year. Mexico’s Pemex will need to substantially increase its gas-well drilling to keep pace with demand, particularly from its primary source in the NE area’s Burgos basin.

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