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When it was announced in late September that Saskatchewan’s population had surpassed 1.1 million for the first time ever, Premier Brad Wall was quick to offer comment, and understandably so. According to the figures from Statistics Canada, the province had added 100,000 people since 2007. At the time of the announcement, it had grown by 6,895 in the preceding quarter-the largest increase in any quarter since Statistics Canada began keeping quarterly estimates.
“Saskatchewan is the place to be in Canada right now,” Wall said. “We have the strongest job growth and lowest unemployment in Canada, and we have a great quality of life in this province. “It’s a great place to find a job or start a business. It’s a great place to live and raise a family. It’s no wonder our population is growing.”
Such a statement is not hyperbolic. There are approximately 100,000 new Saskatchewan residents who apparently agree with Wall’s assessment of where their fortunes are potentially brightest. It’s one of the fastest and most sustained periods of population growth the province has experienced in living memory, and the latest signs of a sea change for a province that once saw its residents, its investment dollars and its economic fortunes trickle across its borders to other jurisdictions.
Now, the Conference Board of Canada forecasts the Saskatchewan economy to grow at 3.5 per cent in 2013, the second highest growth rate among Canadian provinces. An average of the seven private forecasters has Saskatchewan landing in third place for GDP growth in 2013 at 2.7 per cent.
Put simply, people go to where the opportunities are. The investment environment in Saskatchewan right now is one of the most opportunity-rich jurisdictions one can find anywhere in Canada-and Saskatchewan’s mining and energy sectors are arguably its star attraction.
There is huge potential for heavy oil in the province. The Lloydminster area has been popular in recent land sales, which is likely due to the favourable price for heavy oil; the differential between light and heavy has narrowed substantially since February 2013. Continued progress in technological innovation is gradually moving more and more of Saskatchewan’s “in-place” oil to the “recoverable” category. Also, as outlined in Saskatchewan’s Plan for Growth, the province intends to increase innovation and research and development in new technologies through agencies like the Petroleum Technology Research Centre (PTRC) and Innovation Saskatchewan. This includes Enhanced Oil Recovery and research into co-production of heavy oil and sand by the PTRC in Regina. These and other technologies being developed hold the promise to tap into Saskatchewan’s massive light and heavy oil potential.
Saskatchewan’s conventional oil-in-place-the amount identified in underground reservoirs but which cannot be recovered in total with current technologies-is estimated at 47.8 billion barrels. This does not include the potential from oil sands or oil shale. Roughly half of the province’s current resources is composed of heavy oil; the rest is light and medium. Only around 13 per cent (or 6.1 billion barrels) of our 47.8 billion barrels of oilin-place is considered commercially recoverable at this time.
This leaves 41.7 billion barrels, or 87 per cent, unrecoverable with current technology-an incredible economic opportunity if even a small portion of that was to become recoverable. One of the provincial government’s most important objectives is to increase the amount of recoverable reserves in the province, and to capture as much of the oil-in-place as possible through the application of new technologies. Saskatchewan’s future lies not in going after new oil with old ideas; it’s in going after old oil with new ideas. It is effectively a locked door, and all that’s needed is the right key that unlocks and opens this door. The PTRC is at the leading edge of Saskatchewan’s efforts to create that key. It is possible that private partnerships could conceivably accelerate the discovery and development of such a key.
With the world’s largest, highest-grade uranium deposits located in the province, the world wants access to Saskatchewan’s mineral resources. And they are highly accessible. The Fraser Institute’s Survey of Mining Companies for 2012/2013 ranked Saskatchewan 1st in Canada and 5th overall. This was out of the 93 jurisdictions surveyed in terms of current mineral potential assuming current regulations and land use restrictions.
Saskatchewan is a mining heavyweight in Canada, which is really saying something. The value of Saskatchewan’s potash sales alone was over $6 billion in 2012. It is safe to say that the province has emerged as one of Canada’s leaders in economic growth in large part because of the contributions of this industry.
Saskatchewan’s mineral sector is attracting significant long-term investment. The dollar figures speak for themselves: the mining industry’s contribution to the provincial economy climbed from $175 million in 2002 to $4.4 billion in 2012. All of Saskatchewan’s current potash operations have recently completed, or are currently undergoing, an expansion. These expansions are major-and are expected to create thousands of construction and permanent jobs. It’s estimated that Agrium Inc., Potash Corporation of Saskatchewan, and Mosaic Company will invest a total of almost $14 billion to expand Saskatchewan’s production capacity by over 90 per cent by the year 2023. In addition, K+S Potash has begun the construction of a new $4.1 billion solution mine in our province. And, at this moment, there are other companies with plans for new potash mines on the table, including global mining giants such as BHP Billiton.
Above ground, Saskatchewan is home to some of the world’s most fertile and productive land, claiming 40 per cent of Canada’s arable land. Often referred to as the “breadbasket to the world”, the province is the world’s largest exporter of lentils, chickpeas, mustard, flax and canary seed and supplies a third of the world’s exported durum wheat.
There is much more. Many of Canada’s most advanced innovation and research facilities are found in Saskatchewan, such as the Canadian Light Source-one of the largest scientific projects in Canada. This research facility at the University of Saskatchewan is advancing research in a range of areas including nanotechnology, environmental technologies and pharmaceuticals.
The Sylvia Fedoruk Canadian Centre for Nuclear Innovation, named after the province’s first female lieutenant governor, a renowned medical physicist, was established by the province to support research, development and training in nuclear medicine. The centre, located at the University of Saskatchewan, is committed to the innovation of advanced materials for construction, aerospace and small reactor designs.
The university is also home to Canada’s new $140 million International Vaccine Centre (InterVac), the largest Containment Level 3 (CL3) facility in western Canada. InterVac enables scientists from Canada and around the world to research new infectious disease threats and develop strategies to mitigate the risk to humans and animals.
The Province of Saskatchewan, the University of Saskatchewan, and the Potash Corporation of Saskatchewan have established the Global Institute for Food Security to develop Saskatchewan-led solutions to feed a growing world population. The institute is also based at the University of Saskatchewan, a world-renowned centre of excellence in agriculture and foodsystem related research.
Saskatchewan is a world leader in Carbon Capture Storage (CCS) research. SaskPower’s $1.24 billion Boundary Dam Integrated Carbon Capture and Storage Demonstration Project (BD 3) will be one of the world’s first and largest commercial-scale CCS facilities when it begins operations in 2014. SaskPower, in collaboration with Hitachi, is also leading the development of a new Carbon Capture Test Facility, and the government-owned utility is spearheading the establishment of a CCS knowledge consortium to share findings with organizations around the world.
Complementing these assets, the province is itself investing heavily to ensure continued economic growth. During the last six years, $5 billion has been invested in infrastructure; another $2.5 billion will be invested in the next three years and the government has created a new agency, SaskBuilds, to drive innovation in infrastructure financing, design and delivery, including public-private partnerships.
There has arguably never been a better time to invest in Saskatchewan. The province’s investment climate features competitive and stable royalty regimes for both oil and gas and mining, competitive taxes and a supportive regulatory environment. For investors looking for a good place to do business, Saskatchewan is a rock-solid choice.
Visit www.economy.gov.sk.ca to learn more about Saskatchewan’s supportive business environment, competitive cost advantages, affordable cost of living, and high quality of life.
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