Natural gas producers in western Canada are adapting to an ongoing drought that is impacting water availability for production and increasing wildfire risks.


Drought conditions that have persisted in western Canada for the past couple of years could pose challenges for natural gas producers this year, consultant Deloitte warns in its latest energy price forecast published in late March, as major water consumers like agriculture, oil and gas and municipalities prepare to deal with potential use restrictions. “Canada’s production base has a concentrated need for water, and it’s located right in the middle of some of the country’s most severe drought zones,” Deloitte says in its report. As early as December 2023, regulators in both Alberta and BC were advising industrial water users of the potential for restrictions, citing snowpack levels that were only 72% of average in the Peace Basin of northeast BC, while reservoirs in southern Alberta were as low as 15% full.