Natural Gas in Western Canada

Cameron White of Thunderbird Energy, a Utah natural gas producer, did some handholding in a recent letter to shareholders.  I thought these comments were important…

During the last decade, the number of producing gas wells has tripled from approximately 40,000 to 120,000, but the total gas production has remain flat at about 20 bcf per day.  Despite these facts, over 1/3 of the total natural gas production are now coming from wells drilled during the past 3 years.  In other words, producers are swimming like mad just to tread water, against a back drop of steadily increasing demand.