Another one of the key energy players in Northeastern B.C. has decided to shut in some of its natural gas production.
The Calgary Herald reports Canadian Natural Resources Limited has decided to shut in about five per cent of its output – or 50 million cubic feet per day.
It says that follows a similar move by Conoco Phillips to shut in 15 per cent of its Canadian gas.
The newspaper says the low price of natural gas and poor future prospects have convinced producers, to keep the gas in the ground until the climate improves.
Gas futures have dropped 25 per cent this year and the Herald quotes CNRL vice-chairman, Murray Edwards as being more bullish on oil than gas.
He also says, “We’ve developed all kinds of new sources of natural gas in Canada and the United States through Montney, shale plays…and until we create alternative demand, you’re going to have low prices.”