Canadian Gas Exports to US Set to Drop in 2007

For those of us who rely on natural gas to heat our homes in the winter, this is very bad news. Time to start saving for next winter’s heating bills now.

A steep decline in Canadian natural gas drilling, coupled with increased gas consumption as more oilsands fields come onstream, could dramatically reduce the amount of gas Canada exports to the U.S. in 2007.

Analysts believe Canadian natural gas volumes available for export to the U.S. could drop by as much as 1 billion cubic feet a day, or about 11%, tightening available supply and likely ratcheting up futures prices.

 

If this news is accurate, it means rough winters for those of us in norther climes, and rough summers for people in areas that rely on natgas-fired electrical plants. Canada has certain obligations to supply the US with natural gas per terms of the NAFTA agreement, but if they simply don’t have the gas, I’m not sure what can be done. LNG imports will increase over time, but that will be 5-10 years in the future, even with fast-track governmental approval.

My plan: shop the winter clearance sales this year for cheap blankets, thermal underwear and sweaters. It’s time to consider keeping the house at 70F+ in the winter as the luxury that it is rather than the minimal requirement for comfort.

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2 Responses to Canadian Gas Exports to US Set to Drop in 2007

  1. Are there really people keeping their houses at 70-degrees-plus in the winter? Egad! For several years, we’ve kept ours at 64 during the day, 55 at night and 50 while we’re away. I’m wearing longjohns and a wool sweater right now!

  2. meowblog says:

    There most definitely are. If I had to make a guess, I’d say that at least 75% of the houses in the burbs (especially in upper-middle class ones and above) are keeping their thermostats at 68 or higher all day long, or some pattern like 70 during the day, low 60’s at night, etc. It’s what a lot of us Gen X’ers and younger grew up with, so it’s normal for us. I, for one, didn’t own a sweater from the age of 5-6 to 25 or so, since it was always too damn hot in my house to wear one.

    I think one of the hardest aspects of the low-energy transition is going to be changing our expectations in this way.

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