A Message from the
honourable brian pallister
Premier of Manitoba
On behalf of the Government of Manitoba, it is my pleasure to welcome you to the 2020 edition of the Manitoba Oil & Gas Review. Our government was recently re-elected on a promise to promote economic development, create jobs, and cut red tape across all sectors and industries. Manitoba recognizes the important role that oil & gas continues to play in our provincial economy. Oil was discovered in Manitoba in 1951 and has been produced since that time primarily in southwest Manitoba along the northeastern flank of the Williston Basin, a sedimentary basin that also occupies portions of our neighbours in Saskatchewan, North Dakota, South Dakota, and Montana. Another emerging area for oil & gas production in Manitoba is situated in the Hudson Bay Lowlands. Some key highlights from 2018-2019 production year include: • The value of oil and natural gas production represented between one and two per cent of nominal Gross Domestic Product; • Crude oil production in Manitoba is equivalent to approximately 43 per cent of the province’s refined petroleum products requirement; • In 2019, over 2.557 million cubic metres or 16.08 million barrels of oil with a total value of $1 billion were produced in Manitoba’s oil & gas sector; • About $442 million was spent by the petroleum industry on exploration and development of oil & gas resources, resulting in drilling 263 horizontal wells and 276 wells in total. There are currently 6,096 producing and support wells;
• The majority of the approximately 10,573 wells drilled to date in Manitoba have only been drilled to Triassic, Mississippian, or to the Bakken, representing approximately one half of the potential hydrocarbon-bearing formations; • Royalties, production taxes and revenue from the administration of Crown-owned oil & gas rights, fees, and sundry accounted for $22.6 million. • Manitoba’s oil continues to be of good quality. Manitoba is committed to help the oil & gas industry keep pace with changes in the sector, evidenced by the advancement of innovative pipeline-leak detection technology. Leadingedge processes allow for the detection of even the smallest leak instantly to shut down the pipeline and mitigate the impact of a spill. This innovation is good for the environment and industry credibility. Removing unnessary administrative burdens while improving regulatory processes is a key commitment to ensure Manitoba is always open for business. Our government continues to work with industry on improvement to the petroleum fiscal regime and information delivery systems. Through partnership with Western provinces, we are streamlining administrative processes in the next fiscal year to make reporting easier and reduce the risk overpayments by oil & gas producers in Manitoba. For almost seven decades, in both good times and bad, the oil & gas industry continues to adapt and innovate. We continue to work with the oil & gas industry to make Manitoba become Canada’s most improved province. Together we will keep Manitoba’s resource sector resilient and strong. v
Manitoba Oil & Gas Review 2020
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