Saskatchewan Oil Report 2021

Page 10

Message from the Saskatchewan Minister of Energy and Resources

HON. BRONWYN EYRE

O

n behalf of the Ministry of Energy and

Helium is also taking off in the province, with im-

Resources, I am pleased to join with

portant projects in the works from North American

Premier Moe in offering welcoming re-

Helium Inc. and Royal Helium. In fact, Saskatchewan

marks for the 2021 edition of the Sas-

will soon be home to the largest helium purifica-

katchewan Oil Report.

tion operation in Canada. It is being constructed by

Certainly over the course of the last year, the oil

North American Helium near Battle Creek, SK, and is

and gas sector has experienced significant challeng-

expected to be operational by July. Royal Helium is

es. In response, the Government of Saskatchewan

currently drilling of three wells near Climax.

implemented several, key relief measures, including

As we begin to emerge and recover from the CO-

extending mineral rights exploration timelines and

VID-19 pandemic, our oil and gas sector will play a

reducing the industry portion of the oil and gas ad-

substantial role in strengthening and building Sas-

ministration levy.

katchewan’s economy. In 2019, the oil and gas sec-

In May 2020, our government also launched the

tor produced over 490,000 barrels of oil per day, the

Accelerated Site Closure Program (ASCP), with the

value of provincial oil and gas production was over

important goal of getting Saskatchewan service

$10 billion, and the sector supported over 30,000

companies re-engaged and workers back on the job.

Saskatchewan jobs.

Now in the sixth month of a 30-month program, the

In November of 2019, we released Saskatchewan’s

ASCP has allocated $300 million and issued more

Growth Plan: The Next Decade of Growth, which in-

than $98 million in contracts to licensees, which

cludes ambitious targets that include increasing oil

hire service companies to complete abandonment

production by 25 per cent, to 600,000 barrels per

and reclamation activities. The ASCP has engaged

day, and increasing the value of Saskatchewan ex-

307 Saskatchewan-based service companies to date

ports by 50 per cent over the next decade.

across every oil and gas region of the province. Com-

Despite signs of growth, challenges to the oil and

pleted so far have been 724 well abandonments, 175

gas sector remain, including the impact of the fed-

flowline abandonments, 39 facility decommissions,

eral Carbon Tax, the federal Clean Fuel Standard and

and 1,434 site remediation and reclamation activities.

the federal Environmental Impact Assessment Act

Saskatchewan has also welcomed a number of

(Bill C-69). As a government, we continue to strongly

new, innovative projects over the past year. These in-

advocate for, and promote, the sector and its work-

clude the Prairie-LiEP Critical Mineral Joint Venture,

ers, as we call for more cautious, common-sense

a two-stage pilot project that will produce lithium

federal regulation and policies.

hydroxide from Saskatchewan oilfield brines, and

Saskatchewan remains committed to being a

Proton Technologies’ hydrogen production project,

strong environmental steward, while growing our

a first-of-its-kind project in the world that extracts

economy. v

hydrogen from existing oil reservoirs and leaves carbon dioxide in the ground.

10 Saskatchewan Oil Report 2021


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