Contractors are feeling a squeeze as Australia’s producers look to cut costs. But the reductions could be risking the industry’s future.
GGA Chief Energy Analyst Peter Stewart spoke at the IEA last week on the interaction between oil and gas prices. These are the main points of his speech to the standing committee on oil markets.
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The gas-price differential between the Northwest Sumas pricing point in the state of Washington and the AECO Hub in Alberta is facilitating gas flows from Canada into the western United States. This will also absorb some of the gas from the glutted Canadian market during the summer as US gas-to-power demand ratchets up.