All / Saskatchewan Oilpatch
A question for those of you that live in Saskatchewan, has there been
any major articles appearing in newspapers regarding Petroleum
Awareness week in Saskatchewan which ended this past weekend.
If so, can you relate stories to us.
The following relates to Saskatchewan.
Saskatchewan oil industry heading for records
The Canadian Press
SASKATOON - Oil exploration in Saskatchewan is heading toward new records in 1996. About 20 per cent more oil wells were being drilled by the middle of October compared with the same period last year. By Oct. 15, a total of 1,252 new oil wells were being drilled compared with 998 in 1995, according to provincial government numbers. A record 117.5 million barrels of oil were produced in 1995.
According to one oil company official, the super-charged oil industry is putting a strain on available hardware.
"Right now, if you happen to get a drilling rig, you don't let it go," said Lowell Jackson, chief operating officer for Grand and Walker Energy.
Jackson was in Saskatoon this week for a petroleum industry forum at the University of Saskatchewan. He said his Calgary-based company has six rigs drilling in the Kindersley area right now, an unusually high number for Grand and Walker.
Three factors are fuelling the oil industry growth in Saskatchewan, he said. World demand for oil has increased along with the price ($24.83 at Friday's close) because of the trade embargo against Iraq.
A change in the way refineries handle oil has also contributed to rising demand and prices. Three years ago, refineries stopped keeping large amounts of crude on hand. Now when price and demand rise, exploration companies immediately feel the effect.
The third spur is the investment community.
"Many mutual funds are looking for a place to put their money," said Jackson. "When they see a commodity is hot, their money follows. And there is a lot of money out there."
The money gives companies the freedom to look for more oil. According to the provincial government, the number of land rights and licences being purchased indicates the trend will continue in 1997.
"When companies are spending money on land rights, they don't like spending a lot of money and watching it sit," said Roy Clayton, deputy minister of Saskatchewan Energy and Mines.
Clayton said most of the new exploration is taking place in the area around Lloydminster and in southeastern Saskatchewan near Estevan and Weyburn. |
