Encana seeks breakthrough in Duvernay
Alberta's Duvernay formation is often touted as the next major North American liquids-rich shale play, but results have been slow to prove it. Jeffrey Jones writes Duvernay, which cuts across much of northwestern and central Alberta, has been a top focus for several large and small energy companies, which kicked off a land rush in 2009. One big draw is the potential for large volumes of condensate production, which is needed as a blending agent for bitumen from the oil sands.
Still, says a FirstEnergy report, "Recognizing that it is still early days, and while remaining encouraged and optimistic surrounding the size, scope, and economic potential of the play, a clear declaration of economic viability across the entire trend appears elusive." Mr. Fitzmartyn said he expects better indications whether the play will live up to its billing soon, especially in its northern reaches, as more capital is spent to solve its geological and engineering riddles.
Duvernay players include Exxon, EnCana, Shell, Chevron, Trilogy, Vermilion and Yoho. Oil and gas liquids production averages 7,460 barrels a day and natural gas output is at 58.4 million barrels a day.
I seek safe harbour