Saskatchewan could produce more conventional oil than Alberta: Boyd
Last Updated: Tuesday, April 28, 2009 | 12:25 PM CT
CBC News
Saskatchewan could soon surpass Alberta in conventional oil production, Saskatchewan's energy minister says.
"The positive trend line for Saskatchewan is increasing and Alberta is going the other direction ... and it's great news for the province," Energy and Resources Minister Bill Boyd said Monday at an oil industry conference in Regina.
Nearly 1,000 delegates from Saskatchewan, Manitoba, Montana and North and South Dakota are in Regina for the 17th annual Williston Basin Petroleum Conference.
Delegates who have gathered to hear about the latest technologies in oil and gas exploration and development also got a pro-Saskatchewan pitch from Boyd.
He noted Saskatchewan is coming off one of the best years ever for oil and gas activity, with a record 161 million barrels of oil produced in 2008.
In Alberta, conventional (non-oilsands) production was higher — about 192 million barrels in 2007, the last year for which figures were available — but the number has been declining in recent years.
In addition to rising conventional oil production in Saskatchewan, Boyd noted, there was a record $1.1 billion raised last year in the sale of Crown petroleum and natural gas rights.
Boyd anticipates investors will want to keep making those purchases as they wait for prices to rise again.
"There is a pulling back, no question about it when you see prices drop off. I guess the good news is the industry has invested significantly in Saskatchewan in terms of land sales and now as a result of that they want to try and realize on that investment," Boyd said.
It's probably inevitable that Saskatchewan will surpass Alberta's conventional production, perhaps within a few years, he said.
With oilsands added to conventional production, it's a different story, however.
According to Alberta's Energy Resources Conservation Board, Alberta oilsands production totaled 482 million barrels in 2007. Saskatchewan, meanwhile, has no oilsands production.
If Saskatchewan does surge ahead of Alberta on conventional oil, it could be as a result of the Bakken formation, which stretches from the southeast to west-central areas of the province.
Boyd noted some innovative technologies are being used to get extra oil out of the ground there.
"I think you are going to see the industry picking up that same technology and using it all over Saskatchewan, maybe in a little different way, but still using essentially the same production techniques," he said.
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