Alberta's Natural Gas Conundrum Threatens Resource Loss

The natural gas conundrum in Alberta has been brewing for decades, but it's only recently become a pressing concern. The story begins with deregulation in 1986, when prices plummeted and remained low for nearly 15 years. In the early 2000s, strong demand sent prices skyrocketing to unprecedented levels, averaging $4.27/GJ in 2000 and peaking at $7.47/GJ in 2008.

The high prices led to a flurry of development activity, with new fields being developed and brought online. However, this boom was short-lived as the shale gas revolution flooded the market with cheap natural gas, driving prices down to $1.29/GJ by 2018.

Thousands of wells were left uneconomic, and the Orphan Well Association took on the responsibility of dealing with the abandoned infrastructure. The problem is not just environmental; if all these wells are shut in, the resource could be lost forever.