Message from the Premier of Saskatchewan, Scott Moe

Message from the Premier of Saskatchewan

SCOTT MOE

On behalf of the Government of Saskatchewan, it is my pleasure to welcome you to the 2021 edition of the Saskatchewan Oil Report.

The past year has been enormously challenging for Saskatchewan and the entire world. The COVID-19 pandemic is an unprecedented crisis in our time. Every sector of society has been affected by the crisis. Every industry has felt the impact. The province’s oil and gas sector was hit hard by a steep reduction in demand caused by the pandemic and the damaging effects of an international price war. There has been tremendous uncertainty for energy companies and the families they support. But I strongly believe better days are ahead.

As we move through 2021, Saskatchewan’s vaccination program will pick up steam, and life will slowly return to normal. The province’s economy is poised for a significant comeback, in part because we managed to keep more businesses open during the pandemic than any other jurisdiction in Canada. We’re starting from a good position, and the fundamental strengths of our economy have not changed. We are fortunate in Saskatchewan to have an energy sector that remains a powerhouse in our economy and in our communities.

The importance of oil and gas to Saskatchewan’s wellbeing is underappreciated. The industry accounts for 16 per cent of our province’s GDP and supports nearly 30,000 families in dozens of communities. Energy companies pay taxes to well over 100 municipalities in the province, in addition to contributing hundreds of millions of dollars in taxes and royalties to provincial coffers.

Our government understands the important role the oil and gas sector plays in supporting quality of life in Saskatchewan. That is why we will always stand up for the industry and the communities and families supported by the industry.

An example of this commitment was in April 2020, when we implemented a series of relief measures for the provincial oil and gas sector, in response to the economic downturn resulting from COVID-19 and the price war. Following the announcement of these relief measures, the Government of Saskatchewan launched the Accelerated Site Closure Program (ASCP) to help address the abandonment and reclamation of inactive oil and gas wells and facilities. In partnership with the federal government and the Saskatchewan Research Council (SRC), the program is putting hundreds of people back to work.

The ASCP, now well underway, applies $400 million in federal funding for the abandonment and reclamation of up to 8,000 inactive oil and gas wells and facilities. The program is expected to support approximately 2,100 full-time equivalent jobs over two years. Our government is ensuring Indigenous businesses, communities and people benefit from the program through the First Nations Stewardship Fund and the Indigenous Business Credit Pool.

Our government will be relying on our Growth Plan to kickstart our economy and ensure another decade of growth. One of the objectives in our Growth Plan is the expansion of oil production in the province to 600,000 barrels per year by 2030. Demand for oil around the world is expected to grow in the years ahead. Saskatchewan can help meet that grow ing demand.

Saskatchewan’s oil is among the most sustainably produced oil in the world. Our producers are the very best in the world at what they do. You can expect our government to defend and promote Saskatchewan’s oil and gas sector in the years ahead.

On behalf of the Government of Saskatchewan, thank you for the many contributions you make to our province. We’re counting on you as we begin the next chapter in Saskatchewan’s growth story.

Scott Moe Premier

“Saskatchewan is just a great place to do business, the government stands by its word, and that stability is attractive to investors.” ~ Grant Strem, Chairman & CEO of Proton Technologies

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