Encana develops partnerships

Times Contributor  

 

Representatives from Encana met with Wheatland Council to share exciting news about production initiatives in 2013.

Wheatland County falls within Encana’s Clearwater development boundaries.

“The oil and gas commodity focus is changing,” said Larry Marshall, Encana Community Relations advisor. “In 2012-2013, we will see acceleration in oil and liquid rich natural gas development.”

Encana has been moving to develop partnerships with several corporations to maximize their opportunities.

“Canada is rich in natural resources, but does not always bring capital to the table, so joint ventures help balance that,” said Marshall

In 2012, Mitsubishi Corporation worked with Encana to secure land in northeast British Columbia, and this month Encana announced a $ 2.18 billion dollar contract with PetroChina for development in Two Hill County.

In the spring of 2012, Encana announced Toyota Tsusho Wheatland Inc., a subsidiary of Toyota Tsusho Corporation, signed a deal to acquire a 32.5 percent royalty interest in gas production, from 5,500 existing  and 1,500 newly drilled coal bed methane wells.  .www.encana.com/news-stories/news-releases . Under the agreement, Encana is the operator and a joint committee of Encana/Toyota oversees operations, direction, and development. Jana King, Encana team leader for Clearwater South, said Toyota Tsusho provided 52 million dollars in 2012 and an additional designation of 80 million for 2013, to develop wells in the Clearwater region.These wells are located along the east edge of Horseshoe Canyon near Drumheller. Horseshoe Canyon is a popular tourist site and a well-known depository for dinosaur fossils. King said that the 2011 tsunami in Japan has left the Japanese with energy shortages and they need to build infrastructure to recover. The Japanese government has supported the partnerships with Canadian companies, as part of the rebuilding process. King said that Toyota Tsusho has similar values when it comes to doing things right, safety and environmental concerns. 

Marshall said that since natural gas prices are down, more deep well drilling would occur for oil and liquid gas development, bringing balance for investment portfolios. 

With developments, our county residents will notice more activity this year. There will be more rig activity and oil donkeys pumping to storage tanks. Truck traffic will increase to take oil and gas products for processing. Councillors asked if a partnership could be developed regarding dust control and road improvements, considering the increased activity would cause problems. Marshall said there could be discussions and possibly a committee to develop solutions surrounding the issues. 

There will be more fenced wellheads and well sites appearing in farm fields, but farmers will have to be more careful with machinery around high-pressure well sites. King said Encana will do everything they can to minimize the development footprint for landowners.