CALGARY, Sept. 25 /CNW/ - The Canadian Society for Unconventional Gas
(CSUG) intends to work with the Alberta government as the Province prepares
its formal response to the report of the Royalty Review Panel.
"Discussion of Alberta's royalty regime is a critical issue", says Kin
Chow, CSUG Board Chairman, "but equally important is the need to ensure
development of Alberta's important unconventional gas resources continues to
"The future of Alberta's natural gas production is in unconventional gas
as mature conventional gas reserves decline. However, the technical and cost
challenges to produce unconventional gas require relatively high gas prices to
justify the development of this resource. Having reviewed the report, the
Society and its member companies have concerns that the higher royalties
associated with gas prices which are required to economically develop
unconventional gas may decrease investment in this resource. The Society also
has concerns with some of the data related to natural gas production used in
The sustainability of Alberta's gas production is also reliant on
technological innovation and the Society is hopeful that the government will
encourage the development of new technology through its fiscal structure.
Chow says the Society will work with its members to ensure the Alberta
government has current and accurate information about unconventional gas
development and potential in the province prior to issuing its response.
Unconventional gas is natural gas that is contained in "difficult to
produce" rock formations which require different or special completion,
stimulation, and/or production techniques to retrieve. Natural gas from coal
(NGC) or coal bed methane (CBM), tight gas sands, shale gas, and gas hydrates
are all examples of unconventional gas.
The Canadian Society for Unconventional Gas was created in 2002 to
facilitate the factual and collaborative exchange of unconventional gas
knowledge and challenges amongst government, regulators, industry and public
stakeholders for the exploration and production of the resource in an
environmentally sensitive and economical manner.
For further information:
For further information: MEDIA CONTACT: Lisa Rollins, Manager,
Communications and Engagement, Canadian Society for Unconventional Gas, (403)
233-9298 ext. 226, firstname.lastname@example.org, www.csug.ca