Targets

Canadian producers are riding shale gas technology imported from the United States to complete an about-face in drilling targets next year by switching over to tight oil formations.

A Jefferies & Co. analyst this week cut his 2012 earnings forecasts and price targets by 30-50% for some of the biggest domestic onshore drillers and well service companies because he expects to see slower growth for oil and gas rigs.

Dow Chemical Co., the biggest U.S. chemical manufacturer, expects to see its earnings jump 16% in 2011 from a year ago, in part because of the ability to use inexpensive shale gas in its operations, CEO Andrew Liveris said on Tuesday.

Cold snaps, an accelerating switch in drilling targets to chase high oil prices and strong demand by Alberta thermal bitumen extraction projects are deflating Canada’s share in the North American natural gas surplus.

Cold snaps, an accelerating switch in drilling targets to chase high oil prices and strong demand by Alberta thermal bitumen extraction projects are deflating Canada’s share in the North American natural gas surplus.

After two years of study, Australian oil and gas exploration and production company AWE Ltd. said it has identified targets within the Perth Basin Shale play that rival the characteristics of some of the productive natural gas shales within the United States, with one interval — the Carynginia Shale — alone holding a gross of 13-20 Tcf in place within AWE’s acreage.

Deteriorating production, cold snaps, a switch in drilling targets to oil and strong Alberta industrial demand are cutting down the Canadian natural gas surplus overhanging the North American market.

Deteriorating production, cold snaps, a switch in drilling targets to oil and strong Alberta industrial demand are cutting down the Canadian natural gas surplus overhanging the North American market.

Canadian natural gas exports deteriorated further during the 2009-2010 heating season, contributing to an accelerating switch of drilling targets to oil north of the border.