Business – Key Industries – Energy
Did you know…?
Saskatchewan is the second largest oil producer in Canada after Alberta. The province produces approximately 20 per cent of total Canadian oil production.
As the world’s population grows and living standards increase, energy requirements will continue to rise. With the United Nations predicting world population growth from 6.4 billion in 2004 to 8.1 billion by 2030, demand for energy must increase substantially over that period.
The Organization for Economic Co-operation and Development (OECD) expects energy demand to rise 1.6% per year, or 53% from 2004 to 2030.
As Saskatchewan has an abundance of energy commodities such as oil, gas, uranium, and coal, energy supply will be a significant part of the province’s future growth. The fact that Saskatchewan has 45% of Canada’s arable land weighs heavily into the potential for biomass conversion into bio-fuels for future energy needs as well. Energy commodity development is an important emerging sector in Saskatchewan. The demand for fuels is growing in other markets as well, particularly in China and other Asian countries with rapidly growing economies. In turn, this is creating new opportunities and accelerating the development of Saskatchewan’s oil sands and the energy sector as a whole. As energy development continues, the region will attract more companies involved in exploration, production, research and development. Saskatchewan is fast becoming a significant oil producer. The province produced more oil to the US than Kuwait in 2005. With a favourable royalty structure, investment has begun flowing to the province. Issues such as scarcity and increased worldwide oil consumption will drive development over the long term. Saskatchewan has roughly one-tenth of world’s recoverable uranium reserves. In the event of a substantial global expansion in nuclear power in response to a call for lower greenhouse gas emissions, Saskatchewan’s economy would receive a long-term boost.