Category Archives: oil

Saskatchewan’s economy will lead the country in GDP growth in 2018 and 2019 – RBC

RBC projecting Sask. economy to rebound in 2018 and 2019

Projecting a 2.7% growth in both years due to agriculture, with help from oil and gas

CBC News Posted: Dec 12, 2017 10:30 AM CT Last Updated: Dec 12, 2017 10:30 AM CT

Rebounds in the agricultural and mining sectors along with rising investment spending will be the main factors behind the economic rebound in 2018 and 2019, according to the RBC forecast.

Rebounds in the agricultural and mining sectors along with rising investment spending will be the main factors behind the economic rebound in 2018 and 2019, according to the RBC forecast. (Courtesy Paul Dornstauder)

Saskatchewan’s economy will lead the country in GDP growth in 2018 and 2019, according to RBC’s economic forecast.

 

RBC is projecting a growth of 2.7 per cent both years, if all goes well.

The economy is expected to receive a boost from the agriculture sector, with some help from oil and gas in the strengthening energy sector.

“Our view is that rebounds in the agricultural and mining sectors along with rising investment spending will be the main factors accelerating overall GDP growth over the next two years,” the report says.

Capital spending and the construction industry may have a good year, due to improvement in the mining sector as well.

Potash, after a decline in production in 2016, has increased so far this year thanks to a strong global demand and key contracts with China and India, the report says.

In addition, the bank is forecasting employment in the province to rise by half a percentage point and the unemployment rate to remain at 5.7 per cent next year.

Canadian Oil Prices Collapse Amid Pipeline and Rail Bottleneck

Canadian Oil Collapses Amid Pipeline and Rail Bottleneck

By  Robert Tuttle Bloomberg

December 11, 2017, 5:43 PM CST Updated on December 12, 2017, 9:18 AM CST

 

Heavy Canadian crude fell to a three-year low against benchmark prices Tuesday as bottlenecks on pipelines and rail networks crimped exports.

Canadian crude’s discount to West Texas Intermediate futures has widened more than $10 since August as pipeline companies including Enbridge Inc. rationed space amid high Western Canadian inventories. Rail cars struggled to catch up on deliveries after line disruptions over the past two months.

“You are in a serious pain point right now,” Mike Walls, a Genscape Inc. analyst, said by phone from Boulder, Colorado. “It’s the perfect storm of too much supply and not enough capacity.”

Western Canadian Select’s discount to WTI steepened $1 to $22.75 a barrel, the weakest price since July 2014, according to data compiled by Bloomberg at 7:18 a.m. Calgary time. It was $10.05 below WTI four months ago. The outright price of the crude slid $1.43 to $35.59 a barrel, the lowest level in three months.

Western Canada Select Dec 2017 vs 2014 graph

TransCanada Corp.’s Keystone pipeline to the U.S. shut for almost two weeks last month after a spill in South Dakota, contributing to rising oil inventories in Western Canada. While service on the line has resumed, it’s required to run at a reduced pressure, meaning less oil can pass through.

Enbridge said Monday it would ration space on some of its pipelines by another 5 percent in December. The announcement came after the company required shippers on light oil feeder pipelines around Edmonton, Alberta, to restrict deliveries because of “high inventories.” Enbridge’s main line ships heavy and light crude from Edmonton to Superior, Wisconsin.

Rising Production

Crude export pipelines were already filling up as new oil sands production entered the market. Suncor Energy Inc.’s Fort Hills mine, for example, is starting up now and scheduled to reach 20,000 to 40,000 barrels a day by next quarter.

When pipelines fill up, excess crude is typically pushed onto rail cars, requiring a bigger price discount for the crude to make the more expensive form of transport profitable.

Space on rail cars is in short supply after three disruptions to the Canadian National Railways Co.’s system in the past two months. The company is playing “catch up,” Kate Fenske, a spokeswoman, said by phone Monday. Business on all of the company’s lines is up 10 percent since last year, she said.

Canadian National gives shippers who have committed to use capacity on the network priority when space is limited because the rail company would have to pay a penalty for shipments not delivered, Fenske said. But Canadian oil shippers have been reluctant to sign up for committed space on rail networks after three new oil export pipelines were approved over the past year, Genscape’s Walls said. That’s in contrast with shippers of other commodities, who have been signing up for space, he said.

Two of the new oil pipelines, the expanded Trans Mountain line to British Columbia and Enbridge’s Line 3, could start operation as early as 2019.

“You may not see a lot of people committing on rail right now and that’s causing the differentials to blow out,” Walls said.

Equalization payments – 2018-19 – something’s wrong with this system

As Brad Wall posted on Facebook . . .

Equilization payments 2018-19

Quebec is cutting income taxes, sending cheques to parents, and will balance their budget.

Wondering where they got the money?

This year, Quebec is receiving $11.7 BILLION in equalization, which makes up 11% of their total revenue. That’s $650 MILLION more than last year.

Saskatchewan taxpayers are contributing $580 million to equalization just this year and again receive ZERO dollars in equalization as our finances struggle with the challenge of stubbornly low commodity prices.

Something isn’t right.

GOVERNMENT INTRODUCES COAL-FIRED ELECTRICITY REGULATIONS

GOVERNMENT INTRODUCES COAL-FIRED ELECTRICITY REGULATIONS

Government of Saskatchewan logo

Released on December 6, 2017

Regulations Are Next Step Toward Equivalency Agreement With The Federal Government

As committed to in Prairie Resilience: A Made-in-Saskatchewan Climate Change Strategy, the Government of Saskatchewan today passed regulations on coal-fired electricity as a next step toward an equivalency agreement with the federal government.

Under an equivalency agreement, the Government of Canada would accept that Saskatchewan meets or exceeds federal standards, enabling the province to regulate its own emissions from SaskPower’s fleet of coal-fired power plants.  The regulations passed today are a necessary step in the equivalency agreement process, which was announced in principle in November 2016.

Government also proclaimed portions of The Management and Reduction of Greenhouse Gases Act, which enabled reporting, verification and compliance powers, and will enable drafting of new regulations and standards to further support Saskatchewan’s comprehensive approach to climate change.

“The Act and Regulations are fundamental to the province’s climate change strategy,” Environment Minister Dustin Duncan said.  “These regulations are the next step for the province to complete an equivalency agreement to provincially regulate electricity emissions.”

Without an equivalency agreement, federal regulations would require all coal-fired units that do not meet a stringent performance standard to close at the end of their economic life, or by 2030, whichever comes first.

Under pending federal regulations, SaskPower would be required to regulate emissions on a unit-by-unit basis.  However, with an equivalency agreement in place, SaskPower would have financial and regulatory flexibility to continue operating coal units past their federal shutdown date by outperforming federal emission reduction requirements on a fleet-wide basis.  Under provincial regulation, future electricity emissions are expected to outperform federal expectations.

“SaskPower welcomes an agreement that will recognize that we have captured and stored 1.75 million tonnes of carbon dioxide since successfully launching carbon capture sequestration on Boundary Dam 3,” SaskPower CEO and President Mike Marsh said.  “We are also developing greener ways of generating electricity.  Having flexibility will allow us to deliver reliable and moderately-priced electricity and meet growing demand with a diversified generation portfolio that includes wind and solar.  We’ve set an aggressive target of up to 50 per cent generation capacity from renewables by 2030.”

The Ministry of Environment and SaskPower continue to work with Environment and Climate Change Canada to finalize the equivalency agreement and ensure provincial regulations are accepted in lieu of federal coal-fired electricity regulations.

The Management and Reduction of Greenhouse Gases (General and Electricity Producer) Regulations take effect January 1, 2018.  A final equivalency agreement is expected by 2019.

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For more information, contact:

Darby Semeniuk
Environment
Regina
Phone: 306-787-0143
Email: darby.semeniuk@gov.sk.ca

SaskPower
Media Relations
Regina
Phone: 306-536-2886
Email: mediarelations@saskpower.com

Husky Energy approves two new $350-million heavy oil facilities in SK

Husky Energy approves two new $350-million heavy oil facilities

ALEX MACPHERSON, SASKATOON STARPHOENIX

Published on: December 4, 2017 | Last Updated: December 4, 2017 4:38 PM CST

Husky east adam project

Husky Energy Inc.’s Edam East project near Lloydminster. JAMES WOOD / LLOYDMINSTER MERIDIAN BOOSTER

 

A year after it committed $1 billion to build three steam-assisted heavy oil extraction plants in western Saskatchewan, one of Canada’s largest energy companies says its board has approved two more of the facilities at a combined cost of $700 million.

Husky Energy Inc.’s decision to green light the plants — to be built at Westhazel, near Mervin, and Edam — is part of its broader strategy to approve two plants per year “for the foreseeable future,” according to a spokesman.

“That can’t continue endlessly, of course, but we do have a good pipeline of projects that we have on the horizon and we have outlined spending plans to bring forward two per year going forward,” Mel Duvall said Monday.

Each of the 10,000-barrels-per-day plants is expected to create between 250 and 300 construction jobs, plus around 30 full-time permanent positions once they begin production, which is expected in 2021, Duvall said.

The Calgary-based company currently has four “thermal” plants under construction — Rush Lake 2, Dee Valley, Spruce Lake North and Spruce Lake Central — plus an additional four operating in the province: Rush Lake, Edam East, Edam West and Vawn.

Part of its strategy of shifting production to “low sustaining capital” operations, Husky’s Lloydminster-area plants feed its upgrader in the border city, which converts heavy crude into the synthetic oil needed to produce diesel and gasoline.

“All the signs are right for these projects,” Duvall said. “They’re bite-sized so it’s not like taking on a multi-billion-dollar oil sands plant … They’ve just been very good for us.”

Duvall said many of Husky’s employees in the region live in North Battleford. The mayor of the city of 14,000 said Monday that the company’s current and planned projects in the area are “incredibly positive” news.

“There are a lot of jobs here that are generated by just the construction alone,” Ryan Bater said. “When the Edam and Vawn plants went up, that was a big deal for our community. And it continues to be because we have those employees and their families living here.”

Saskatchewan Chamber of Commerce CEO Steve McLellan said that while it’s difficult to determine the exact economic impact of each plant, Husky’s plan will benefit local hotels, restaurants and other businesses as well as manufacturers and equipment distributors in Saskatoon.

“This demonstrates confidence and that should send good vibes across the communities, small and large,” he said.

Late last week, Husky reported an uncontrolled steam release at its Edam East thermal plant, which began production in 2016. No one was injured; the company said a “small amount” of oil escaped. Duvall said the leak, which was contained, will not affect the company’s plans.

“Something like this shouldn’t happen, and of course we’re going to undertake a thorough investigation and determine exactly what happened and put in steps to make sure it doesn’t happen again. But … we have great confidence in the attractiveness of these projects.”

Husky previously spent more than $100 million cleaning up a pipeline spill that dumped around 225,000 litres of crude into the North Saskatchewan River near Maidstone in July 2016.

Saskatchewan Mining Association supports Government of Saskatchewan’s Climate Change Strategy

MEDIA RELEASE

Monday, December 4, 2017

FOR IMMEDIATE RELEASE

Regina:  The Saskatchewan Mining Association (SMA) is supportive of the Government of Saskatchewan’s Climate Change Plan which was released earlier today.  While the Saskatchewan Plan has a lower emissions threshold than the Federal Climate Change Plan, the sector-based, multi-faceted approach will ensure the ‘Made in Saskatchewan Plan’ is effective in reducing GHG emissions while ensuring the sustainability of Saskatchewan communities.

As Canada transitions to a low-carbon economy, the Saskatchewan Climate Change Plan features flexible compliance mechanisms, including adoption of innovative and best in class technology that will allow mining to continue to be a pillar of Saskatchewan’s economy while continuing to provide clean energy and food to the world.

The Saskatchewan mining sector is particularly sensitive to a price on carbon as it represents an additional direct cost for producers that international competitors aren’t paying. “Ensuring the mining sector remains globally competitive is vitally important to Saskatchewan, particularly in this period of low commodity prices,” said Pam Schwann, SMA President.    “We need to be mindful that, as we work to reduce GHG emissions, mining investments and jobs are not being exported to other international jurisdictions that don’t have the robust environment and safety regulatory framework that exists in Saskatchewan and Canada.”

Saskatchewan’s mining operations account for 3% of provincial GHG emissions. “Our members are committed to bringing our expertise to the table and working with the province to reduce GHG emissions from the mining sector.”  said Schwann.

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About SMA

Saskatchewan Mining Association is an industry-driven organization representing the mining and mineral exploration industry with over 25 mining operations in the province.

SMA advocates on behalf of members on issues related to provincial and federal regulatory changes, develops and supports educational outreach programs, organizes and hosts public outreach and membership events.  Please visit http://saskmining.ca/

 

For more information please contact:

Pam Schwann, P. Geo, MSc

President, Saskatchewan Mining Association; (306) 757-9505

Husky to build new pipelines in SK, defers asphalt refinery

Husky to build new pipelines, retire the one that leaked into river

Asphalt refinery deferred due to purchase of Superior Refinery

BRIAN ZINCHUK / PIPELINE NEWS

http://www.pipelinenews.ca/features/transportation/husky-to-build-new-pipelines-retire-the-one-that-leaked-into-river-1.23104126

DECEMBER 4, 2017 09:18 AM

Husky pipeline Dec 2017
Photo By Husky Midstream

Lloydminster – Husky Energy is embarking on a substantial pipeline project in northwest Saskatchewan, one that, once completed, will see the decommissioning of the pipeline that caused a spill in the North Saskatchewan River on July 21, 2016.

The company held two open houses in early November in Lloydminster and Maidstone where they outlined plans to construct a new crude and condensate pipeline to support it’s growing heavy oil thermal production in Saskatchewan.

Husky spokesperson Mel Duvall said via email on Nov. 20, “The two pipelines are 52 kilometres in length, consisting of a 20-inch crude pipeline, which will transport crude produced from our thermal operations north of the North Saskatchewan River to our complex in Lloydminster, and an 8-inch condensate pipeline, which will transport condensate from Lloydminster to our thermal operations.

“The North Leg pipeline is needed to support our growing heavy oil thermal production in the region. As you may be aware, we have four new thermal projects that are currently under construction. Rush Lake 2 is scheduled to come online in early 2019 and Dee Valley, Spruce Lake North and Spruce Lake Central are expected to come online in 2020. Combined, the four projects will add about 40,000 barrels per day of production. Beyond those projects, we plan to bring on two additional thermals per year for the foreseeable future.”

He said the North Leg project is expected to create 275 to 500 jobs during construction and will take about six months to complete, once it receives regulatory approval.

“We are incorporating many of the same improvements in the new pipeline that were built into the repair of the 16 TAN line. The entire length will be outfitted with fibre optic monitoring, which will provide acoustic, thermal and strain monitoring and assist in detecting leaks, ground movement and other events in real time. Thicker pipes and higher grade steel will be used at the North Saskatchewan River crossing and additional measures are being taken to minimize the risk of ground movement.

“We expect to decommission 16 TAN once the new pipeline is in operation.”

The 16 TAN pipeline was the one that spilled approximately 1,415 barrels of blended heavy crude oil and condensate onto the river valley and into the North Saskatchewan River.

The projects also include a 20-inc, 9.5 kilometre raw water pipeline that will transport water to existing and future thermal projects north of the river. It originates south of the river at the Husky direct intake high lift station, and crosses the river to the northeast parallel to the new pipeline. Five kilometres of smaller replacement pipelines between Sandall and Celtic junction will also be built.

Refinery deferred

Husky had been looking at building a new asphalt refinery at Lloydminster earlier in 2017, but that project has now been deferred, according to Duvall.

“We decided to defer a decision on the Lloyd asphalt refinery, following our purchase of the Superior Refinery in Wisconsin. Superior provides us with additional asphalt capacity. We closed the acquisition on Nov. 8,” he said.

“We’ll take another look at the Lloyd project down the road.”

Why the Crescent Point Lodgepole is a BIG deal

The nitty gritty on the Lodgepole

What others call the Lodgepole, we call Souris Valley Beds

BRIAN ZINCHUK / PIPELINE NEWS

NOVEMBER 30, 2017 09:22 AM

http://www.pipelinenews.ca/features/drilling-exploration/the-nitty-gritty-on-the-lodgepole-1.23104137

Crescent Point Lodgepole Map

Regina – The map of exploratory licenses sold in the Oct. 5 land sale correlates to the Hummingbird-Roncott area. Not long after the sale, Crescent Point Energy Corp. declared they had acquired approximately 500 sections in the area for under $40 per acre, roughly equating the number of sections sold in the land sale under exploratory licenses.

Crescent Point president and CEO Scott Saxberg noted they were pursuing the Lodgepole formation. So what does this mean? On Nov. 10, Pipeline Newsspoke to Arden Marsh, senior petroleum research geologist; Dan Kohlruss, senior petroleum research geologist, and Melinda Yurkowski, assistant chief geologist; all with the Saskatchewan Geological Survey, Ministry of the Economy, to get the low-down on the Lodgepole Formation.

First of all, the Lodgepole Formation is referred to as the Souris Valley Beds in Saskatchewan. Marsh said, “The neighbouring jurisdictions have a lot more drilling and production within the interval that we call the Souris Valley Beds, and are able to sub-divide this stratigraphic unit more than we do, into different members.”

“In general, in Saskatchewan, it’s a fine-grained carbonate rock that is mostly dark grey in colour, with some lighter grey to buff colouration in some areas. It can vary from a lime-mudstone, to calcareous shales, and can also have some chert. There can also be a fair amount of fossiliferous and organic material, ooids (a small spheroidal calcium carbonate grain that has concentric layers around a nucleus) and generally coarser material, especially when you move further east of the Roncott-Hummingbird area. This variability in the rock also controls the porosity and permeability within the unit,” Marsh said.

Based on core analysis for Saskatchewan and Manitoba, to the edge of the basin, in general, for the Souris Valley Beds as a whole, the average porosity is approximately 11 per cent, but can be up to 41 per cent, in certain wells, especially where you get more fossiliferous materials.

The average permeability for Saskatchewan and Manitoba is 30 millidarcies, but that drops to 10 millidarcies for just Saskatchewan wells. As you move further west, into the Roncott-Hummingbird area that drops to an average of 1.6 millidarcies. However, there are also analyses from this area that can be up to 44 millidarcies.

“So generally it can be a somewhat tight rock, but it’s also going to be fairly brittle, as it’s a carbonate,” he said.

Some examples of core analysis in the area were from an extremely organic-rich zone within the Souris Valley Beds. “There can be an average of 69 per cent oil within the pore volume,” Marsh said. “That means 69 per cent of the porosity, through that zone is full of oil, and 11 per cent of the rock has porosity. So this means that you’re going to have a lot of oil in small pore spaces through this organic-rich interval.”

“There is also another well in the area, that’s analyzed through the similar interval, with 71 per cent average pore oil volume. These core analyses have up to 92 and 98 per cent maximum pore oil volume for those two wells, through this particular interval, which is extremely high. In this situation where you have relatively low porosity, but high oil volume, you need a large thickness for it to be useful.”

For thicknesses, he said within those two wells, one had pore oil volume greater than 53 per cent for 15 metres. The other well, where you had greater than 40 per cent pore oil volume was 51 metres thick. “You’re probably looking at a resource-type play”, he said.

That echoed Saxberg’s comments, referring to their acquisitions as a “large resource play.”

“To date, in the Souris Valley Beds, there is one producing well, but based on core analysis results, this area shows potential for additional production,” Marsh said.

Asked if such large thicknesses were common, Marsh responded, “We don’t have that many wells drilled into the Souris Valley Beds, in that area, so we have a very small data set to work from.”

“The Souris Valley Beds is made up of clinoforms that can vary greatly within one area. You can be dealing with one clinoform, and a few miles over, it can be something completely different.”

Clinoforms could be compared to shingles on a house, each having different properties. Rich zones may be restricted to one of those shingles.

“This is a really complex play and stratigraphic interval,” Marsh said.

Stratigraphically the Souris Valley Beds are directly above the Bakken Formation, with the Torquay Formation directly below the Bakken. The Torquay and Bakken formations fall in the late Devonian- early Carboniferous periods, while the Souris Valley Beds were deposited during the early part of the Carboniferous period, and the Mississippian epoch. In southeast Saskatchewan, above the Souris Valley Beds are, in order, the Tilston, Alida, Kisbey, Frobisher, Midale and Ratcliffe beds, all of which are oil bearing and have oil production.

“Basically, the Souris Valley, itself, is different than the Bakken (below it) and the rest of the Mississippian, above it,” Marsh said. “This is actually a deeper water-type deposit that would have formed on the slope, going down, towards the deeper basin. Water depths for a lot of these deposits, based on some the literature, would be 75 to 155 metres deep, when it was being deposited.”

According to sister publication CanOils, the Lodgepole (Souris Valley) in Manitoba has been the target for an increasing number of young wells in Manitoba. It’s also the formation that saw most of Manitoba’s production pre-1980, according to the Province of Manitoba.

The location of these organic rich deposits may be related to something underlying them in the stratigraphic column.

Salt dissolution

In the Hummingbird-Roncott area, understanding the timing of salt dissolution of the deeper Prairie Evaporite could be key.

Kohlruss said where salt dissolution occurred it’s going to be more of a conventional-type trap or play. “Will it contribute to the overall picture? Maybe. I don’t know if it’s the main target. The way these work is you need multiple events of salt dissolution over time. For example, during the time of, Duperow Formation deposition, if, during that time you had salt dissolution on a small scale, you’re creating an area like a bowl. That creates accommodation space in that bowl, and the Duperow will be thicker there. Fast forward to the Mississippian or Jurassic period, and more of that salt gets removed, but the morphology of the Duperow stays as that little bowl-shape.

“More salt gets removed, and all the above beds that were deposited, will now drape over that Duperow thick. And that creates an anticline.

“So will that affect the Souris Valley? Yes. Will it affect the Bakken? Yes. That play could have stacked reservoirs in that area, because you created something a little thicker, early on in the history. Now you have these kind of pop-up structures.”

Kohlruss noted it’s a good area to look for structural traps, if oil migrated through it. But it would be easy to miss small targets with individual wells or seismic.

“It’s a very complex area,” Yurkowski said.

Of the 47 Souris Valley wells drilled and fracked in Saskatchewan, 10 of the wells are in the Hummingbird-Roncott area, according to Marsh. “It’s a very heterogeneous carbonate with fairly low permeability, and it’s brittle.”

“I think, in the big picture, this will more likely be something that is a stratigraphic trap, where it’s a bigger area we’re dealing with, as opposed to focusing on the small structures,” Kohlruss said.

The Souris Valley rises as you go north, subcropping several townships north of Regina.

The top of the Souris Valley, not the organic-rich layer, is 2,291 meters below surface near the U.S. border.

The overall thickness of the entire Souris Valley Beds ranges from 59 metres thick in Township 8, to 184 metres thick at the U.S. border.

The oldest well in the region was spudded in 1920, drilled to a depth of 609 metres and completed in 1926. The first oil-producing well was drilling in 1952, drilled to the Interlake Formation. It’s still producing today from the Ratcliffe Beds. It’s in the Hoffer pool at 5-30-1-15-W2.

As noted previously, there’s currently only one well in the area that has produced from the Souris Valley. This area is mostly known for Red River, Winnipegosis, Birdbear Torquay, Bakken, and Ratcliffe production. As you move northeast, it’s a Midale-producing area.

Young men in Sask. making more with apprenticeships than bachelor’s degrees: Stats Can

Young men in Sask. making more with apprenticeships than bachelor’s degrees: Stats Can

Sask. deviates from Canada-wide trend, in which those with apprenticeship certificates make 11% less

By Micki Cowan, CBC News Posted: Nov 29, 2017 11:54 AM CT Last Updated: Nov 29, 2017 6:12 PM CT

The number of young men getting apprenticeship certificates in Canada jumped nearly three percentage points since 2006.

The number of young men getting apprenticeship certificates in Canada jumped nearly three percentage points since 2006. (Shutterstock)

Young men in Saskatchewan are increasingly looking to make their fortunes in the trades, according to a new Statistics Canada report released Wednesday — and they seem to be making a bit more here than those with university undergraduate degrees.

Statistics Canada found that last year, 7.8 per cent of men in the country had an apprenticeship certificate, up from 4.9 per cent in 2006.

The proportion of men between 25 to 34 with certificates was even higher in resource-rich Prairie provinces like Saskatchewan.

Here, 11.9 per cent of young men had trades certificates last year, which was the second-highest proportion among provinces in Canada.

Anne Neufeld, vice-president academic of Saskatchewan Polytechnic, said the numbers indicate that more people are seeing the trades as a viable career option.

“There are many people who really like to work with their hands — they like to work outdoors, for example. So these trades opportunities are very, very attractive for these individuals, and their long-term career prospects are very, very strong,” Neufeld said.

She said 94 per cent of graduates from Saskatchewan Polytechnic’s programs have jobs within six months.

“So we’re not only attracting them, we’re graduating them, they’re finding well-paid jobs and they’re staying in the province to support the economy,” she said.

Fortune seeking

In Saskatchewan, the report found men were also making more money with apprenticeship certificates than with bachelor’s degrees — bucking the Canadian trend.

The median annual earnings for apprenticeship certificate holders in Saskatchewan was $86,059, compared with $84,825 for those with a bachelor’s degree.

Neufeld said Saskatchewan Polytechnic graduates’ starting salaries are just under $50,000 per year.

Canada-wide, men with apprenticeship certificates earned 11 per cent less than men with bachelor’s degrees.

Women’s trades stats lower

The percentage of women with apprenticeship certificates across the country is still much lower than men. According to the Stats Can report, that number has been stable since 2006 at less than two per cent.

Saskatchewan has more women with trades training, but the proportion dropped in the past decade from 2.7 per cent to 2.3 per cent. However, more women have a bachelor’s degree or a more advanced degree, with that number going from 24.6 per cent to 35 per cent.

‘We need to first create the role models.’– Anne Neufeld, Sask. Polytechnic

Neufeld said her school is prioritizing getting more women into the trades, although she said that takes time.

She noted that she is the first female vice-president academic the school has ever had.

She said boys often have an uncle or father in the trades they can look up to.

“Our goal is that we can have young girls and women who would have an aunt, a mother, an older sister in that field — so we need to first create the role models, and then I believe that will attract more girls and younger women into this fabulous career choice,” she said.

One method the school is using is summer camps that allow school-aged girls to give carpentry or welding a try.

Across Canada, women with apprenticeships had lower earnings than those with degrees, according to Statistics Canada.

The report said this shows women are apprenticing in lower-paying trades. Nearly three in 10 women chose hairstyling as their apprenticeship, with median earnings of $34,319.

Crescent Point announces new oil region in Saskatchewan

Crescent Point announces Lodgepole play

That big land sale last month is now accounted for

BRIAN ZINCHUK/ PIPELINE NEWS

http://www.pipelinenews.ca/features/drilling-exploration/crescent-point-announces-lodgepole-play-1.23101832

NOVEMBER 29, 2017 09:11 AM

Crescent Point Lodgepole play

Photo By Crescent Point Energy Corp.

Calgary – It’s not often in Saskatchewan that mineral rights on roughly 500 sections change hands, but the October Crown land sale shows that was roughly the scale of the exploratory licenses that were picked up – about 13.8 townships worth.

A few weeks later, on Oct. 26, Crescent Point Energy Corp., in announcing its 2017 third quarter results, announced they had acquired a substantial amount of land – roughly 600 sections.

Crescent Point president and CEO Scott Saxberg said, “In the Williston Basin, we continue to expand our multi-zone Flat Lake resource play through our step-out drilling program. Step-out drilling delivered strong results in our Torquay and Ratcliffe zones, and also helped identify new, large oil-in-place resource targeting the Lodgepole. During 2017, we drilled several Lodgepole wells which have proven oil productivity. We are currently working towards improving the overall economics of this play, which remain at the early stage of development.

“We believe the Lodgepole zone provides significant resource potential within our existing core area. With the recent land sales, and prior positions, held by the company, Crescent Point now owns a significant position of approximately 380,000 net acres, or 600 net sections, targeting the Lodgepole zone, at an average working interest of about 100 per cent.

Saxberg went on, “Our cost of entry into this large resource play was less than $40 per acre. In addition to increasing our production guidance, we have also increased our 2017 capital expenditure budget by $100 million, to $1.55 billion. We have primarily allocated this capital to the new play development, and expansion in the Uinta and Williston Basins,” he said, adding the additional capital is being funded by non-core dispositions of $190 million, totalling approximately 3,000 barrels of oil equivalent per day. The company is also looking at selling another $100 to $200 million of assets this year.

Saxberg said there was great success in developing the Lodgepole.

“We’ve been working on this play for a couple of years now. We saw, as we drilled through to the Torquay and Ratcliffe zones, that we were hitting this oil-charged zone in the Lodgepole, and we were getting oil over the shaker as we drilled through the rock,” he said.

“A couple of years ago we started the process of collecting core data, mapping out that zone, testing the rock properties, comparing it to the other zones and the productivity. We were able to map out this resource effectively from the border all the way to the north part of the extension of the land sales we just acquired. This resource is well over 600 square miles in size, and stretches from the border to the extension of our land sales.

“Our strategy this year was to drill four to five exploration wells all along the trend to prove up oil productivity all along the trend. So we did that, effectively from early this year. Our first well was just at the end of Q1 into Q2. We saw the productivity there and then followed it up with three more wells along that trend and got oil productivity across those three wells. We obviously posted those lands back in April of this year, with that strategy.

“Part of the reason, the rationale for posting such a large block was to capture that land without any competition.

So early in the middle of the year we had a small land sale that we purposely set up to target that land sale, then followed up with a second land sale. It was able, for us, to capture that land at $40 an acre, which, when you look at the full cycle of this large resource, if it works out the way we think, it will be a large, full cycle economics. It’s still early days. The completion techniques we used, we don’t think were perfect and proper. So we’re going to follow up in the new year with some testing of new completions to optimize it. Basically we’re trying to target similar reserves, productivity, as the Torquay,” Saxberg said.

Asked by an investor during the conference call if the Lodgepole was a large resource opportunity, or smaller, discrete opportunities, Saxberg said it was full, mappable from the border to the northwest corner of the land sales. “It’s a large resource we would anticipate would have similar economics to our Torquay play. Definitely a consistent trend,” he said.

While the company announced an increase in its capital budget, by Nov. 20, it had drawn down its Canadian drilling program to just two drilling rigs, one near Stoughton and one near Dodsland, according to Rig Locator.

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