Large glut of natural gas predicted

According to the Vancouver Sun, the International Energy Agency is predicting that there will be glut of natural gas that will keep prices low over the next decade.

The IEA also predict that this glut will also threaten efforts to produce renewable forms of energy. The IEA’s World Energy Outlook estimates an oversupply of gas of approximately 200 billion cubic meters. While the use of natural gas is increasing more than any other fossil fuel, that will not be enough to overcome the current production surge.

This news will be good news to consumers of natural gas in the province as they should be able to count on steady prices for gas produced in the region. However, it is bad news for the province as they will have less royalty revenues to line their coffers.