Industry insiders gather to hear recommendations for addressing ongoing crisis of natural gas price differential
Leaders in natural gas came together in Calgary on Tuesday to discuss potential measures to address a price differential that continues to plague the industry.
The event, hosted by the provincial government, sought solutions for ongoing issues that include stiff competition for pipeline space and a significant drop in investments. Companies continue to lay off workers and reduce spending.
“With natural gas, it is a problem, but we are looking at some strategic measures that we might be able to offer up,” said Premier Notley.
Many within the industry are calling for cuts to production to reduce supply and increase demand.
“The province needs to really seriously look at prorationing of gas coming into the system just as they've done for crude oil,” said Hal Kvisle, a natural gas advisor. “We'd be crazy to not examine that carefully when you look at how well it's worked on the crude oil side.”
Some analysts suggest that Canada is losing out on tens of millions of dollars each day as a result of low prices.
Tuesday’s panel hear 48 recommendations designed to help the industry but the province has not disclosed which, if any, of the recommendations will be implemented and on what timeline. Among the suggestions discussed on Tuesday were increasing support for smaller-end producers and streamlining the regulatory process.
With files from CTV's Jordan Kanygin