Birchcliff Energy Ltd. Chief Executive Officer Jeff Tonken doesn’t anticipate the natural gas industry will open the spigots and bring new production online to take advantage of rising prices for the fuel.

In an interview Thursday, Tonken said major natural gas players, including his own firm, are eschewing production increases and instead focusing on repairing their battered balance sheets.

“We are all focused on making money for our shareholders, paying down debt, getting our balance sheets in good shape. So I don’t think you’re going to see any growth from the Canadian producers,” he said. 

Tonken isn’t expecting American producers to pick up the slack when it comes to feeding rising demand, either, as many natural gas players south of the border are trying to sort out their own debt.

“The vast majority of [U.S. gas companies] have said they’re focused on flat production and getting their balance sheets in good shape,” he said. “That’s what’s driving commodity prices. People are concerned that demand is starting to really come up, storage for natural gas is falling and there’s no new supply coming."

Natural gas prices have surged more than 14 per cent so far in 2021 as a cold snap across much of North America and Asia has led to increased power consumption. While that rally has given a boost to producers like Birchcliff, the industry has been pressured by years of chronic commodity price weakness.

Tonken warned North America may soon face a supply shortage as worldwide economic reopening could spur a demand spike.

“Based on the number of rigs working, we’d be lucky as an industry in North America to hold our production flat at best,” he said. “As you see the economy starting to grow, we’re going to be short of natural gas and that’s why you see the commodity prices rising.”