For nearly 160 years, Canada’s natural gas industry has been providing much of the country’s energy. As a highly valuable resource with many uses, natural gas was first discovered in Central Canada in the 1890s when an exploratory well drilled near Medicine Hat, Alberta struck natural gas.
In Ontario, Eugene Coste, who became known as the Father of Natural Gas in Canada, found gas and oil fields in the region, and became the first to produce and deliver natural gas in commercial quantities in Alberta. There, he drilled the Old Glory gas well and eventually went on to build a pipeline that provided fuel to thousands of customers.
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In the early years, development of Ontario natural gas presented a number of challenges; for instance, it was difficult to remove impurities from the gas stream. It was also challenging for workers to transport gas as well as make it safe for residential use.
As the use of natural gas began to become more widespread, workers found ways to remove hydrogen sulphide from the fossil fuel. In fact, the first processing plant was built in Port Alma, Ontario in 1924.
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In the early days, processing plants could only be found close to major consuming markets, until 1957 when a large plant was built in northeastern British Columbia. The facility would set the stage for today’s modern natural gas processing plants.
Today, natural gas production has evolved so much that it can be found and extracted from tiny pore spaces (called hydraulic fracturing) where the gas is trapped. Presently, over 170,000 oil and gas wells have been fractured in Canada while the method of horizontal drilling is used to open up previously inaccessible areas.
Over the years, the development of natural gas has become an integral part of Canada’s economy through jobs and taxes paid to the provincial and federal government. As a result, the revenue generated from natural gas extraction helps to pay for health care, education and social programs in Canada.
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Although the Ontario natural gas market has had its challenges brought forth by recessions and an increase in U.S. production, the industry still has a bright outlook. Today, Canada is the fifth-largest producer of natural gas and the sixth-largest producer of oil in the world.
According to an outlook by The Canada Energy Regulator (CER), in Ontario, natural gas and other renewables will be used to replace coal-fired electricity generation, which is projected to lower Canada’s electricity emissions by 2040. The use of wind and solar power will double over the outlook period, but hydro will remain the dominant source of renewable electricity energy during the next two decades.
As global demand for natural gas has grown over the years, Canada has positioned itself as a leading producer, and will continue to make an impact on the world.