Saskatchewan
THE
PRESENTS
DEVELOPING THE
Duvernay Join us for breakfast and a keynote presentation on THE GROWING DEMAND ON THE SERVICE SECTOR to help develop this burgeoning play.
February 26, 2014, at the Calgary Petroleum Club from 7:30am to 9:15am For inquiries, please call 1.866.671.2778. Register online before February 19, 2014, at junewarren-nickles.com/speakerseries.
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february 2014 • OIL & GAS INQUIRER
although the 2013 total take of $67.37 million for 111,340 hectares was down from the $105.69 million it received in 2012 for the sale of 397,119 hectares. “I think industry has transitioned capital from land acquisition to production,” McMillan said. “We are seeing families moving here for the development jobs.” Wit h t hat ha s come subst a nt ia l growth on the infrastructure side by both the industry and the government, which has been investing in highways and communities, informed by a growth plan out to 2020 that it approved in 2012. There could be a lot of Crown land once again available in 2014, added McMillan. “There was a very large take-up in 2008– 2009, and companies have five years to develop it or it reverts back to the Crown, so [we] are in [a] very positive position with some of those lands,” he said. Although drilling activity has ramped up substantially, the tradition is that a very high proportion of Crown lands will revert back, said the minister. So what could change the picture for the province? “One of the biggest challenges in the past year has been pipeline capacity,” said McMillan. “Industry has answered the call and the percentage of crude leaving the province by rail has risen dramatically and that’s very positive, but the fact that has to happen is a challenge.” The province, though, still believes that pipelines are the most efficient way to move crude oil, according to McMillan. At present, Bakken oil can access the Enbridge Inc. mainline, which also accepts crude from the North Dakota Bakken that is imported into Canada at Steelman, Sask. “There are a lot of very good projects under development and we will try to support them where we can,” he said. Saskatchewan views Asian markets, specifically China, as extremely important to the province’s long-term future. “Getting access to the West Coast is something that is very important to us.” From that perspective, the recent recommendation from the joint review panel to the federal government that it approve Enbridge’s Northern Gateway project with 209 conditions was good news, he said. “From Saskatchewan’s point of view, we don’t think any pipeline should go forward that isn’t environmentally responsible, so