Thursday, 13 October 2011

Interesting Twitter posts by CBC's Robert Jones on figures for NB shale gas royalties

"Vol. of nat gas in believed to be underground in NB: 78.2 trillion cubic ft. Value at current prices: $260 billion. At 2008 prices $1 trillion."

"Last year Alberta go about 53 cents per 1,000 cubic ft. Here that's $41 b. in the ground. 20% recovery = 8 billion."

We asked Natural Gas Group spokesman Marc Belliveau for a response as to whether the numbers have any merit and, if so, what consequences that would have for NB shale gas royalties. We received the following reply:

"I think you mis-typed something in your e-mail. If there's $1 trillion worth of revenue we'd be lending money to the U.S. Bob has interesting stories but cannot comment on them in this context...the most common numbers that I have seen - if the industry takes off - is $200 million or more in royalties to the province and literally thousands of jobs. But it's still an unknown as they are still exploring to determine if it can happen. A trillion is one thousand billions. Our net debt is 10 billion. So I would be amazed if Bob used those numbers. He may have said trillion in cubic metres of gas or something, but I didn't see the report."

We have sent out a Tweet asking Jones where the numbers were obtained. It will be posted when available.

UPDATE: Jones's response - "National Energy Board & NB Department of Natural Resources."