Exxon Mobil Corp. has been exploring the world for shale-gas and they may have found a world class discovery in the Horn River Basin.
Tim Cejka, Exxon’s head of global exploration, stated in an interview with the Wall Street Journal that the Company has been “bullish on shale-gas exploration since 2003, locating promising gas-bearing rock formations and snapping up leases on them.”
Exxon Mobil has 250,000 acres and intial results on each of the four wells completed indicates each well will produce between 16 and 18 million cubic feet per day which is nearly 5 times the size of average wells in Texas’s Barnett shale and Louisiana’s Haynesville shale, which seem to get most of the attention of investors.
Exxon Mobil’s announcement adds to the growing amount of shale gas discoveries in North America and should further advance the importance of this resource to providing secure energy to North America while reducing carbon emissions. And as natural gas prices still trading on lows, exploration and development companies continue to invest in the Horn River basin. In fact, it remains the most active area in Canada, and one of only three active areas in North America. Companies are looking at the long term energy requirements, and realize natural gas will pay a critical role in meeting energy demand while improving the continent’s carbon footprint.
While industry players continue to explore and develop, others in the US are pushing to encourage using natural gas more in the transport network by pushing legislation to increase tax incentives for consumers to offset the cost of natural gas vehicles. The legislation is sponsored by Senator Robert Menendez (D-NJ), co-sponsor Senator Orrin Hatch (R-UT) and Majority Leader Harry Reid (D-NV) with the muscle and might of T. Boone Pickens – a texas oil billionaire turned natural gas/wind power champion.
Mr. Cejka went on to state;
“We are really interested in shale gas. The industry is going to have to bring on oil, gas, coal, nuclear, hydro, wind and solar to meet the world’s energy demand. The economies of the world will come back. Demand will grow again. We are going to be there [Horn River] for the next 20, 30, 40, 50 years.”
Other major companies are also very excited about the Horn River Basin, and investing heavily in the areas massive potential. The BC Goverment has been proactive in providing the favorable royalty programs to encourage development and committed $187million into infrastructure; Encana has committed the first $400 million for a new gas processing plant; and TransCanada Pipelines is investing $380 million to build a pipeline south to increase distribution capacity; and Kitimiat LNG is building a new LNG plant to open Horn River gas to Asian markets.
The Horn River basin is likely the biggest gas discovery in North America. You are encouraged to read further on all the articles here on the Horn River News to get a understanding of the massive potential of the Horn River basin, and how natural gas is changing the energy market in North America.
Wall Street Journal: Exxon Shale-Gas Find Looks Big
Globe & Mail: Exxon results hint at BC gas bonanza