Peyto's President: "Compared to various times over the last year, the AECO futures curve has improved significantly (see figure 2). You could even argue the futures curve has “moved up” a couple years from where it was. I think there is two main reasons for this improvement: depleted storage, and the approval of the NGTL Temporary Service Protocol (TSP)."
"The natural gas rig count in Canada continues to fall year over year (down 40%), despite the recent recovery of AECO gas prices. Perhaps this is due to lackluster oil prices driving both rig counts or perhaps its more due to the lack of financial liquidity in the industry today. Either way, it doesn’t look like the industry is rushing out to ramp up drilling in response to the price rise. That discipline is a good thing and will only help to return some of the economic rent to the producers that was lost to the pipes and midstream sectors."