Gas and energy trading inc calgary

The other theory of natural gas formation, the abiogenic theory, speculates that hydrocarbons were trapped inside the earth as it formed and are migrating to the surface. Natural gas generally flows to the wellbore under its own pressure. As a result, most natural gas wells are equipped only with chokes and valves to control the flow through the wellhead into a pipeline.

When wellhead pressure is less than the pipeline pressure, a compressor is installed to boost the low-pressure natural gas into the pipeline. In many natural gas wells and crude oil wells , one additional step is required - stimulating the formation by physical or chemical means so that hydrocarbons can move more easily to the wellbore through the pores or fractures in the reservoir.

One form of stimulation is acidizing - the injection of acids under pressure into the rock formation through the production tubing and perforations. Hydrochloric acid, for example, is particularly effective in dissolving portions of the limestone and dolomatic formations. This creates channels for natural gas or crude oil to flow back to the well. Acidizing is often followed by fracturing. Fracturing or fracing is another common method of stimulation.

A fluid such as water or an oil product is pumped down the hole under sufficient pressure to create cracks fractures in the formation. Proppant - a hard substance such as sand, ceramics or resin-coated material - is injected with the fluid. As the fluid disperses, the material remains to prop open the fracture. Natural gas from coal also known as coalbed methane , tight gas sands reservoirs with low permeability that require special treatment for the gas to flow , gas shales and gas hydrates are often referred to as unconventional gas resources.

Methane is the main component of unconventional natural gas, but other constituents vary and may have to be removed to produce sales grade natural gas. Sales grade natural gas is the cleanest burning fossil fuel.

Unconventional gas is the same substance as "conventional" natural gas. It is the unusual characteristics of the reservoirs that contain unconventional gas that lead to the unconventional designation. The common characteristic of the different types of unconventional gas resources is that they contain large quantities of natural gas, but it is usually more difficult to produce this gas as compared to conventional reservoir rocks.

New technologies are continually being developed to allow more accurate estimations of the amount of gas in these unconventional reservoirs and to stimulate these rocks to produce the gas. Natural gas can be measured in a variety of ways, although the most common unit of measurement is the gigajoule GJ , which signifies one billion joules, the metric measure of heat or energy. Other measures are; thousand cubic feet Mcf and British thermal unit Btu.

Natural gas pricing is based on supply and demand. Supply is dependent upon production, which in turn depends upon the natural decline of producing gas reserves and the amount of gas from newly developed resources being brought on stream.

Pipeline capacity is also a factor that affects supply. Because residential heating is a large market for natural gas, seasonal temperatures have a significant impact on pricing. As well, the prices of competing energy sources such as oil, coal and electricity affect pricing of natural gas. Because an intricate network of pipelines makes it quite easy to ship natural gas from buyer to buyer, natural gas is a widely-traded commodity in North American markets.

Those markets are becoming increasingly more integrated as gas supplies from several large producing regions compete with each other for buyers. Consequently, the commodity price of natural gas before transportation costs is essentially the same everywhere in North America. Price differences still exist to some degree, reflecting the fact that certain fixed costs vary by region. Costs related to production, shipment by pipeline, storage, distribution, and consumer taxes can all make a difference.

Pipeline transportation is a significant cost for natural gas - much more than for liquids such as oil and gasoline. Through Alberta's network of pipelines, gas is gathered from inside and outside Alberta and is then transported through numerous export transmission lines to many high-demand markets.

The TransCanada mainline is Canada's main inter-provincial pipeline, which extends from eastern Alberta to Montreal. Major exporting systems connect Alberta with markets across the U.

Alberta also has a large amount of storage capacity, which aids in the functioning of the hub. North American prices for natural gas are driven by the interaction of natural gas supply available from North American natural gas and oil fields, and demand. They are determined competitively on spot and futures markets reflecting current and expected supply and demand conditions. Over the course of a year, natural gas prices rise and fall for a variety of reasons. Consumer and industry demand for natural gas, and the supply available to meet their needs, are the fundamentals to understanding short-term natural gas prices.

When the demand is higher, the price tends to rise, and when there is more supply than needed, the price lowers.

The key factors affecting natural gas prices are:. Natural gas prices are also affected by the strength of the economy and the availability of pipelines to move enough gas to meet consumers' changing needs. Natural gas storage can be held in inventory underground, under pressure, in three types of storage reservoirs: Most of the active underground storage facilities in the U.

In its simplest form, the owner of a gas storage facility makes a profit from injecting gas and then withdrawing it and selling it at a higher price, typically through a contract to forward-sell in the future. Most gas in storage is held under longer-term storage obligations to shippers willing to take the spread risk, local distribution companies who use their gas to meet regional demand requirements, and producers looking to take advantage option of the value of the asset.

There are numerous factors which affect this conversion including foreign exchange rates, basis differential calculations which generally include the cost to transport gas through pipelines to other physical hubs, and unit conversions from million British thermal units MMBtu to gigajoules GJ to list a few.

Natural gas produced domestically in Canada is often sold to markets worldwide. For this reason, the currency conversion factor strongly affects the realized price for natural gas. It is often deceiving to witness one price increasing while its counterpart decreases, however the above mentioned factors are the cause of such movements. For further industry-related information: Liquefied Natural Gas LNG is natural gas that has been cooled to oC, the point at which gas condenses to a liquid.

In its liquid state, LNG is a clear liquid with a density about half that of water. This volume reduction permits cost-effective transportation of LNG over long distances. LNG is odourless, colourless, non-corrosive and non-toxic. Therefore, LNG will not pollute land or water resources.

LNG represents an important part of future energy supply within the Untied States. With an abundance of gas reserves worldwide, LNG is one of the fastest-growing segments in the energy industry. LNG has been safely transported across the oceans for more than 60 million miles during the past 40 years.

These double-hulled tankers are specially designed and built to carry LNG. On land, LNG is stored at atmospheric pressure in specially engineered and constructed double-walled storage tanks. Most of these tanks have three-foot concrete exterior walls and an inner tank that is constructed from a steel-nickel metal alloy specifically designed to accommodate the cold LNG. Should a leak develop in the inner wall, all of the LNG would be contained in the space between the inner and outer walls.

Sophisticated monitoring systems provide constant surveillance for any internal leaks. LNG is converted back into natural gas by pumping the fluid from the storage tank and heating it to regasify the liquid. The gas is then ready for delivery through natural gas pipelines to homes and businesses. Crude oil is naturally occurring petroleum. Hydrocarbons are a class of organic compounds consisting only of carbon and hydrogen and which are the basis of oil, natural gas and coal.

Crude oil consists of carbon 83 to 87 per cent , hydrogen 10 to 14 per cent , sulphur up to six per cent , nitrogen up to two per cent , oxygen up to 1. Hydrocarbon molecules range from a single carbon atom with four hydrogen atoms to simple chains of two or more carbon atoms to complex configurations involving chains and rings of carbon atoms.

Hydrocarbon molecules are generally grouped in four categories: Petroleum products refined from crude oil fuel almost 40 per cent of Canada's total energy needs. Slightly more than 70 per cent of the crude oil produced in Canada is refined into transportation fuels - gasoline and diesel for cars and trucks, kerosene for jet aircraft and fuel oil for ships. Other energy uses include domestic and industrial heating, fuels for industrial purposes and generating electricity.

Each of the thousands of molecules that make up crude oil has particular physical and chemical properties. Hundreds of products are made by separating and sorting these molecules, then re-combining or processing them further.

The range of products varies according to the particular type of crude oil and the refinery design. Processes can be altered to produce more gasoline in summer or more heating oil in winter.

On average, processing light crude oil in a modern refinery yields the following range of products:. There are two theories as to how oil is formed. The most widely accepted theory, the biogenic theory, begins with plants using solar energy to convert carbon dioxide and water into oxygen and carbohydrates through a process known as photosynthesis.

When the plants die, the sediments containing them become buried and, as the depth of burial increases, heat and pressure transform the carbohydrates into hydrocarbons. This takes place in source rocks, usually very fine-grained rocks known as black shales.

Coal is a solid hydrocarbon derived from land plants. Oil is a liquid hydrocarbon derived primarily from simple marine plants and animals, and natural gas is a gaseous hydrocarbon derived from either terrestrial or marine materials at a higher temperature and pressure than coal or oil.

The other theory of oil formation, the abiogenic theory, speculates that hydrocarbons were trapped inside the earth as it formed and are migrating to the surface.

Once the oil is formed, continued pressure from overlying rock strata forces the oil to migrate through permeable rock layers until it is trapped in reservoirs of porous sedimentary rock such as sandstone or limestone, or until it escapes at the surface. There are several types of traps:. Normal fault - Normal fault traps occur where reservoir rock on one side of the fault is positioned against impermeable rock on the other side of the fault.

Thrust fault - Thrust fault traps occur where reservoir rock overlain by impermeable cap rock has first been folded, then thrust-faulted over itself. Stratigraphic pinch-out - Stratigraphic pinch-outs occur where reservoir rock loses its porosity due to cementing or decreased grain size, or where reservoir rock gradually thins out and is surrounded by impermeable rock.

Reef - Ancient reefs built by corals and other communal organisms often develop porosity that, if sealed by impermeable rock, forms prolific reservoirs. Porous rocks draping over the reef may form separate reservoirs.

Anticline - Compression folds rocks into anticlines hills and synclines valleys. If reservoir rock is overlain by impermeable rock, traps form at the crests of the anticlines. Salt dome - Salt domes occur when salt at depth is forced toward the surface by the weight of surrounding rock.

As the salt deposits bulge upward, traps are formed in upturned reservoir rocks flanking the domes and folded reservoir rocks overlying the domes. Crude oil is commonly classified as light, medium or heavy, referring to its gravity as measured on the American Petroleum Institute API Scale. Light crude oil contains many small, hydrogen-rich hydrocarbon molecules. Light oil flows easily through wells and pipelines. When light oil is refined, it produces a large quantity of transportation fuels such as gasoline, diesel and jet fuel.

Light oil commands the highest price per barrel. Heavy crude oil contains many large, carbon-rich hydrocarbon molecules. Additional pumping is needed to make heavy oil flow through wells and pipelines.

Heavy crude oil contains a smaller proportion of natural gasoline and diesel fuel components and requires much more extensive refining to make transportation fuels. Heavy oil commands a lower price and the difference in price per barrel is called the differential. This upgraded oil is known as synthetic crude oil. Oil sands are naturally occurring mixtures of bitumen, water, sand and clay that are found mainly in three areas of Alberta - Athabasca, Peace River and Cold Lake.

A typical sample of oil sands might contain about 12 per cent bitumen by weight, although bitumen content can vary widely among specific samples and sites.

An oil refinery is a manufacturing facility that uses crude oil as a raw material and produces a mix of products. The product mix can be varied by changing the types of processing units or the process conditions, or by using different crude oil feedstocks. In summer, for example, Canadian refineries increase their output of gasoline for motorists and their production of asphalt for road paving. In winter, they refine more home heating and diesel fuels.

All refineries are different. Some can process heavy crude oils or synthetic crudes, while others only process conventional light crude oil. Prior to his current role, Mr. Prior to joining Tidewater in February of , Mr. Prior to joining the Tidewater team, Mr. Barva was an associate at a large national law firm generally advising oil and gas companies and related businesses in areas of law such as corporate and commercial, natural resources, oil and gas and regulatory among others. Barva holds a J.

Fraser brings invaluable international and North American oil and gas experience to the Tidewater Team. In roles previous to PrimeWest, Mr. Mr Fraser will chair the audit Committee of Tidewater. Wong-Chor has been a Director since February 4, Since September , Mr. Holyoake brings over 20 years of operations, engineering and management experience, working in all disciplines of the oil and gas business from upstream to midstream operations.

Holyoake is a P. Raymond is an experienced environment, health and safety and human resources professional with many years in the oil and gas industry. She is presently since a consultant and advises Corporate Boards of Directors and Executives on operational and EHS risk management and governance. She was responsible globally at Petro-Canada for environment, health, employee assistance programs, safety, aboriginal affairs, security, stakeholder relations, emergency response and crisis management as well as corporate responsibility.

Raymond holds her B. She also holds her ICD. Colcleugh has been a director of the Corporation since May 25, Prior thereto, he was one of the founders of Tristone Capital Inc.