U.S. shale gas puts pressure on Canadian producers

Cheap and plentiful natural gas from U.S. shale plays is putting pressure on western Canadian gas producers in U.S. and eastern Canada markets, reports E&P. The magazine says the Canadian Association of Petroleum Producers’ expectation is that natural gas exports to the United States will decline perhaps to about half of their current levels by the end of the next decade. The problem for Canadian producers is that shipping gas on TransCanada pipelines to eastern markets often costs as much as the price of the commodity itself, giving U.S. shale producers an advantage because of their proximity to market demand. For more, read the full story.

Global, National