Light and medium oil in Saskatchewan: prosperity through change

Light and medium oil production was analyzed, as well as industry structure, markets, economics and investment. Past and existing trends were examined, and prospects for the future were assessed. The limiting factors to the development of light and medium crude resources in the province were identified. Based on existing established reserves and oil production statistics, Saskatchewan had roughly equal amounts of light and medium initial oil in place. Over 333 million cubic metres has been produced from these fields over the years. In a 1988 report of the Geological Survey of Canada it was estimated that there were 570 million cubic metres of recoverable medium and light oil yet to be discovered in the Western Canada Sedimentary Basin at the end of 1985. As far as the structure of the oil industry in Saskatchewan was concerned, the overwhelming dominance of small to medium size operators was clearly evident. While this may be considered an asset in some respects, it also raises concerns, in particular with regard to the potential impact of a large number of marginal wells being owned and operated by very small companies. As for the market, Saskatchewan producers were said to be facing a shrinking Canadian market for their crude oil, but the outlook in the United Sates market appeared brighter in view of the declining U.S. production. Other important issues treated included reductions in land availability due to posting restrictions, regulatory issues such as export licensing, and product quality issues. 19 tabs., 56 figs