National Energy Board : Market Snapshot: Fewer wells account for majority of natural gas production in western Canada

Release Date: 2016-01-21

Since 2006, more than 200 000 wells have been producing natural gas in western Canada at any given time. These wells are a mix of old and new, shallow and deep, and produce gas from numerous sources. While the total number of wells with natural gas production has been relatively stable from 2008 onwards, fewer new wells are being drilled on an annual basis, and the average new well has become more productive because of advancements in horizontal drilling and hydraulic fracturing.

As a result of this increased productivity, a decreasing number of wells account for the majority of western Canadian production. In 2008, 18 per cent of wells accounted for 80 per cent of production. In 2014, this figure dropped to 13 per cent of wells, and in 2015, it is estimated to be 12 per cent. Despite this declining percentage, total western Canadian natural gas production has actually increased six per cent since 2012 - further evidence of the enhanced productivity of new wells.

Wells Producing Natural Gas in Western Canada

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

0

50,000

100,000

150,000

200,000

250,000

300,000

0.00

0.05

0.10

0.15

0.20

0.25

0.30

	Percent of wells accounting for 80% of production
	Number of producing natural gas wells

Historically, western Canadian gas production was dominated by conventional gas. In the early 2000s, average well productivity from mature conventional plays was in decline, which meant more wells were needed to keep production level. However, hydraulic fracturing improved tight well productivity to such a degree that fewer new wells were needed to maintain overall production, and tight wells also became the dominant source of gas production by 2012.

Date modified:2016-01-21