JWN Energy Group’s Daily Oil Bulletin
31 July 2019
The Alberta natural gas industry is in dire straits. In an open letter to Premier Jason Kenney, nine CEOs of primarily gas-producing companies recently begged the Alberta government to consider some sort of royalty tax credit scheme to support a voluntary curtailment plan in an attempt to stabilize gas prices at higher levels. However, as we have seen with the mandatory program for crude oil, curtailment is no more than a Band-Aid, and it is highly questionable whether an Alberta gas plan would work, whether mandatory or voluntary … Alberta’s new associate natural gas minister, Dale Nally, may have to get creative and support some energy-intensive new industries to ramp-up the volume.