The Canadian Association of Petroleum Producers is forecasting a 14 per cent increase in upstream natural gas and oil investment this year. Capital spending is expected to be around $3.36 billion higher this year, reaching $27.3 billion.
President and CEO, Tim McMillan, who is also a former SaskParty MLA and member of the Caucus, says the additional spending is primarily focused in British Columbia and Alberta. Modest improvement is expected in Saskatchewan with a five per cent increase, bringing investment to $2.8 billion.
The total Canadian upstream investment in 2021 is forecast at $27.3-billion, but McMillan adds that back in 2014 it was more like $81-billion.
McMillan calls the Saskatchewan government leaders in Canada with its growth plan, which lets businesses, industries, and citizens know what the objective is and he considers the target of increasing oil production to 600,000 barrels a day a reasonable goal.
The Association says Saskatchewan’s vision 2030 goal of increasing oil production by 25 per cent, along with fiscal incentives that enhance investment attractiveness have laid a solid foundation for the industry. The group also says the Saskatchewan-wide rebate on electricity bills; a policy which assist companies with liquidity, and signals to the investment community that the province is committed to the economic recovery of the business community.
All three provinces have also reached equivalency agreements with the federal government on methane emission reduction regulations, which the Association says provides industry with predictability and a regulatory framework that allows for a solutions-focused approach while enabling industry to advance technological innovation.