Natural Gas in New Brunswick
New Brunswick has a long history with natural gas. In fact, the first oil in Canada was discovered in New Brunswick in 1859. Three hundred oil and natural gas wells were drilled in the province by 2010.
Since 1990, 40 oil and 40 natural gas wells have been drilled in New Brunswick and 49 of those have been hydraulically fractured. There are currently 32 natural gas and 18 oil wells producing in New Brunswick by two operators: Corridor Resources and Kicking Horse Energy. Natural gas production in New Brunswick in 2014 averaged just over 9 million cubic feet per day.
There is still a lot of work to be done to understand how much natural gas lies deep below the surface in New Brunswick. Further exploration will allow geologists to better understand and estimate New Brunswick’s natural gas potential.
In Southeastern New Brunswick, Calgary based consultants GLJ & Associates Ltd. have estimated a 67 trillion cubic feet (tcf) gas-in-place resource in the Frederick Brook formation in the Sussex and Elgin sub-basins. For context, Canada produced 5.56 trillion cubic feet (tcf) in 2012 and is the 5th largest producer of natural gas in the world. (Source: BP Statistical Review 2013)
The above map details show confirmed shale basins, potential shale basins and current oil & natural gas leases/licenses (red areas indicate areas where development has taken place and yellow indicate licences to search). An Oil and Natural Gas License to Search grants exclusive right to explore and produce oil and natural gas. A license to search may be converted to a lease during the 3-year term of the licence to search.
An Oil and Natural Gas Lease grants exclusive rights to produce oil and natural gas. Leases are granted in 5 year terms and may be extended where a portion of the lease is producing or capable of producing in paying quantity.
From 1963 to 2012, over 507,000 wells have been drilled in Canada and over 215,000 have been hydraulically fractured in Canada over the last 60 years. (Source: Canadian Association of Petroleum Producers)