History of the petroleum industry in Canada (natural gas)
Petroleum in Canada |
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| This article is part of a series. | |
| 1. Early history 2. Story of natural gas 3. Oil sands and heavy oil 4. The frontiers 5. Gas liquids |
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| Resources and producers | |
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Oil reserves Petroleum companies |
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| Categories | |
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Oil fields Oil refineries Oil companies |
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Economy of Canada Energy policy of Canada |
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Natural gas has been used almost as long as crude oil in Canada, but its commercial development was not as rapid. This is because of special properties of this energy commodity: it is a gas, and it frequently contains impurities. The technical challenges involved to first process and then pipe it to market are therefore considerable. Furthermore, the costs of pipeline building make the whole enterprise capital intensive, requiring both money and engineering expertise, and large enough markets to make the business profitable.
Until it became commercially viable, natural gas was often a nuisance. Dangerous to handle and hard to get to market, early oilmen despised it as a poor relation to its rich cousin crude oil. Although early processing procedures were able to remove water, in the 19th century discoveries were only developed if consumers could use the gas just as it came out of the ground. If the gas required further processing or needed to be piped a long distance to market, the producer shut in the well. Flares got rid of gas coming from oil wells.
Natural gas processing changes the commodity in two critical ways. First, it extracts valuable by-products; second, it renders natural gas fit to be transported to a point for commercial sale and consumption. Through the use of evolving technology, the gas processing industry of each era extracts higher percentages of a wider range of hydrocarbons and other commercial by-products than its predecessors. It also removes ever-higher percentages of dangerous and other unwanted impurities. Steady growth has made natural gas a major industry, with 180 cubic kilometres of gas flowing from Canadian fields to market, every year.
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