• Journal of the Korean Institute of Gas
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• v.21 no.2
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• pp.10-19
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• 2017

This paper presents the status and characteristics of oil and gas industry and the guideline for investment of producing asset or petroleum and natural gas rights(PNG rights) in Canada. The Western Canadian Sedimentary Basin(WSCB) consists of around 11 main formations, and petroleum has actively been produced at the Montney, Cardium, Viking and Bakken formation. However, the drilling activity declined to 1,917 in Q1, 2016 from 5,724 in Q1, 2014 and 3,365 in Q1, 2015 which dropped 67% and 43% respectively because of the low oil price since 2014. Also, the price of oil and gas asset decreased 34~47% on reserves and production base, and the PNG rights for development decreased 81~97% based on total bidding price, bidding area and unit bidding price. Therefore, it is very favorable environment for Korean companies entering into the Canadian petroleum business especially in PNG rights acquisition which needs smaller investment compare to asset acquisition and shows sharpest value depreciation.