Saskatchewan Oil Imports
Overview
Saskatchewan province is the sixth-largest oil producer in North America and the second-largest in Canada. The record amount of produce oil was in 2015 — 486,000 barrels per day. 65% of that production was shipped to the United States.
It is estimated that Saskatchewan’s oil reserves are almost 1.2 billion barrels. This province also has a vast network of pipelines. Saskatchewan is a home for a massive portion of the Bakken Formation, one of the biggest conventional oil plays in North America.
At the end of November 2019, Saskatchewan oil production increased by 0.7% compared to November 2018. Take a glance at the graph below.
Oil and gas industry
Saskatchewan has a wealth of natural resources. Due to this fact, the oil and gas industries are one of the leading sectors in this province. Improvements to horizontal oil well drilling and completion techniques have greatly improved production in the last several years. Currently, approximately 12% of the 56 billion barrels of oil-in-place is recoverable based on current and expected conditions, implying the excellent potential for the development of supply chain opportunities and new technologies.
Current plays that are driving the industry include the Shaunavon Medium, Mannville Heavy, Viking Light, Mississippian Light, and Medium, and Bakken and Torquay Light.
Fast facts:
- Oil production in 2018 — 178.4 million barrels
- Oil wells drilled in 2018 — 2,551, of which 2,261 are horizontal
- Exploration and development expenditures in 2018 — $4.5 billion
- Heavy crude oil upgrading capacity — 137,000 barrels per day
- Crude oil refining capacity — 109,000 barrels per day
Current Trends and Activities
Since mid-2014, there has been a rise in global oil production that has resulted during a significant decline in the price of fossil oil. The decline has resulted in many production companies reducing cost budgets, including drilling budgets. While the demand for goods and services associated with capital projects has decreased, there continues to be a requirement for products and services required for operations.
In the current environment, producers will have to keep equipment in commission for extended before replacement. Therefore, it's expected that there'll be an increased demand for suppliers providing maintenance and rehabilitation services for material components. Current market conditions have increased competition among suppliers; however, opportunities still exist for suppliers offering goods or services associated with technology or innovation, which will increase the production capacity or efficiency of a well.
Take a glance at the distribution of gross domestic product of Saskatchewan, in 2018, by industry: