With lower Natural Gas prices come lower land right sales

The Financial Post is reporting with natural gas prices collapsing the North American shale gas rush is slowing to a trickle.

After exploding in recent years thanks to new drilling technology, significant drilling plans in the highest-cost plays, such as the Horn River Basin North of Fort Nelson have been put on hold. That is being reflected in the first two 2009 monthly sales of oil and gas rights in Northeastern BC.

Wednesday’s February sale generated only 17.6 million dollars in bonus bids and for the year the province is already about 100 million dollars behind last year’s record pace…

Steve Thorlakson is the General Manager of Surerus Pipeline Incorporated…. [asset|aid=1018|format=mp3player|formatter=asset_bonus|title=adaa9c10959b95bcfc42846a3bdaf9d8-Thorlakson-1_2_Pub.mp3]

Asked about a turn around time-table, Mr. Thorlakson said…. [asset|aid=1019|format=mp3player|formatter=asset_bonus|title=adaa9c10959b95bcfc42846a3bdaf9d8-Thorlakson-2_1_Pub.mp3]

The recession in the United States reduced natural gas demand, particularly from industrial consumers, and it is estimated about 700 million cubic feet a day will likely have to be taken off line, with Alberta seeing the bulk of the shut-ins.

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