Regina – Saskatchewan’s energy and resource sector is important to the province. That’s the message Minister of Energy and Resources Bronwyn Eyre delivered as the opening speaker for the SIMSA Oil and Gas Supply Chain Forum on Oct. 3.
“We’re grateful, and we’re very fortunate to have so many dynamic, innovative and competitive people in this room, and driving our economic growth,” she said.
“This forum is designed to bring buyers and sellers together, to make more connections happen,” she said.
Her ministry, as well as the Ministry of Trade and Export Development are partners in organizing and supporting the forum. After her speech, she, Minister of Trade and Export Development Jeremy Harrison and Minister of Environment Dustin Duncan met with SIMSA’s board.
“Make no mistake. The energy and resource sector is a vital industry in Saskatchewan,” Eyre said. “Certainly, I get that message out, every chance I get. And I get out there, every chance I get. Last week I was invited to attend a climate change protest on the steps of the legislature. Couldn’t make it! Because I was touring heavy oil sites in and around Lloydminster,” she said to applause.
“Of course, the energy sector continues to face headwinds in this country. This year, you know, we lost two key fights, Bill C-69 and Bill C-48. But the fight has to go on, for the energy and resource sector in this country, and against what is clearly a federal anti-energy agenda.”
She went on, “On that federal attitude to energy, a number of things come to mind. For one, there was the federal energy minister taking to Twitter a few weeks ago to complain about being held up at a railway stop, by a train transporting oil. I’m sure most of you saw it,” pointing out the irony.
“This is the federal department that is responsible for the stewardship of the natural resources in this country. They recently put out a tender for ‘technologies that reduce or eliminate fossil fuels.’
“Eliminate,” Eyre repeated.
“And of course, there’s the announcement, and reannouncement, and re-reannouncement of the TMX pipeline. And somehow, those shovels just don’t get in the ground.
“I was at an energy ministers conference this summer and oil and gas wasn’t even on the agenda. That takes work. That’s no mean feat.
“What there were some very stilted sessions and very carefully selected panelists on, of all things, branding Canadian energy. I had to weigh in. I had to say, ‘How about branding starts with being proud of Canadian energy? Not being ashamed of it?
“It would do wonders for companies trying to raise equity, or attract international investors who wonder why we’re eating our own up here, in Canada?
“Let’s not forget, the last five years, foreign investment in this country has decreased 75 per cent. No wonder the upcoming election on Oct. 21 feels so important.”
She said Saskatchewan needs to focus on what it can do to support these sectors, such as maintaining a competitive and stable royalty regime, ensuring an excellent regulatory environment, removing unnecessary barriers to environment, and working with stakeholders and industry to facilitate new projects.
Eyre pointed out that this past summer, Gibson Energy was the first successful applicant for Saskatchewan’s new oil and gas processing incentive. “Gibsons expanded facility in Moose Jaw is proof we can grow our economy by supporting a key sector in a sustainable way,” she said.
The expansion increased the Moose Jaw Refinery’s capacity by approximately 30 per cent, with no increase in greenhouse gas (GHG) emissions.
She pointed out that if every oil and gas jurisdiction around the world extracted it like we do, in Canada, GHG emissions would fall by a quarter.
Oil and gas is responsible for about 15 per cent of Saskatchewan’s gross domestic product, she said.
Saskatchewan produced 178.4 million barrels in 2018. “Over $100 billion in combined value in oil and gas production is forecast for 2019, up nine per cent from the previous year,” she said.
“This kind of economic output leads to overall economic prosperity and quality of life. And I wonder, do they recognize that more in a country such as Norway?” She posed, pointing out the recent startup of the Johan Sverdrup oilfield off the Norwegian coast. Eyre pointed out the first phase of the Johan Sverdrup project was started when the federal Liberal government was elected in 2015.
“Think about that,” she said. “While every pipeline project here as either been cancelled or delayed, there, in Norway, it’s full steam ahead.”
She said the 283 kilometre pipeline from sea to shore will be Norway’s longest. Production from the project will reach 440,000 barrels per day, eventually peaking at 660,000. “And just for context, Saskatchewan produced just under 490,000 barrels a day last year. Kinda leaves you green, when you read all this, that protests appear to be next to nonexistent, except for Greta next door in Sweden.”
She said this project will produce over $130 billion in Canadian dollar equivalent. Last year, Saskatchewan producers lost $3.7 billion due to a lack of access to tidewater, and the province lost $250 million in lost taxes and royalties.
Eyre said things can change on a dime. Five or six years ago, the United States was facing all the regulation and red tape, and Canada was approving pipelines.
“As the sector makes its way back, one of our greatest advantages, here in Saskatchewan, is you. Such an innovative and versatile supply chain is an immeasurable asset to our economic growth overall, and to our activity. Your success attracts and encourages more success. And it’s the economic enabler that provides the legs for our oil and gas industry,” she said.
The provincial government has worked on “best value procurement,” she noted under the “Priority Saskatchewan” branch of SaskBuilds that is responsible for provincial procurement.
“The Government of Saskatchewan, the Ministry of Energy and Resources, will continue to leave no stone unturned when it comes to improving efficiencies, increasing investment, and fostering competitiveness in our province,” she said.
“Thank you, for everything you do.”
