Anyone who’s filled up their tank in 2022 understands how volatile the oil and gas industry can be. World prices for a barrel of crude can drop below $35 a barrel or rise to a high of $100+ in a matter of months. This is an industry dominated by private investors, many who began with nothing and emerged years later either broke or as multi-millionaires. The world runs on oil and gas and although there have been global initiatives to move away from fossil fuels, the perfect crossover solution hasn’t appeared yet.
Saskatchewan has been blessed with oil reserves second only to Alberta and ranks fifth in onshore crude oil production in North America. Often referred to as “black gold” when oil prices are high there’s an equally lucrative market in natural gas. The combination of these two resources, has transformed many small Saskatchewan towns headed towards extinction, into vibrant communities with new services, restaurants, hotels, even housing booms.
In 2021, the combined estimated value of oil and gas production in Sask. was over three billion and the industry provides over 29,000 people years of employment in both direct and indirect businesses.
Most Saskatchewan’s oil and gas resources (approximately 75%) are owned by the Crown and the royalties paid on the 30,000 active wells provide a steady stream of revenue for the province. In addition, the government generates millions annually by auctioning mineral rights leases to private companies for development and production. Companies are given a defined period to prove productivity of the resources, or the mineral rights are handed back to the Crown.
Oil and gas exploration in this province has been active since the late 40’s and new drilling techniques have opened huge reserves in fields known as: The Bakken, Viking, Birdbear, Shaunavon, Mississippian Ratcliffe Beds and Torquay.
Our reserves are plentiful and have the potential to outlast the global demand for this type of energy. However, with prices high and demand strong Saskatchewan will continue to bank “black gold” revenue for the foreseeable future.
The last four weeks we’ve devoted space on our Facebook page to share with you what you haven’t been hearing on the nightly news.
At Minards we’re a family owned, home grown business that believes there’s a lot to love and be optimistic about in this province.
If you feel the same way…Like and Share these posts about “Thriving at Home” and help spread the good news about Saskatchewan!
