Oil and gas companies may not be investing in Alberta but that doesn’t mean they’re sitting on their hands.
A number of recent deals in Saskatchewan have boosted that province’s position in the oilfield service sector.
Not only is light oil more attractive right now because of commodity prices, but Mark Salkeld, President and CEO of the Petroleum Services Association of Canada, says politics play a role too.
“Premier [Brad] Wall is, no surprise to anybody, an unabashedly proud supporter of the oil and gas industry,” he said.
The other significant factor is train capacity, and proximity to the U.S. border.
“The producers who were active in those plays in Saskatchewan were ramping up their railcar loading capacity because their product was in demand in the U.S.,” he explained.
But Salkeld points out Alberta crude is still in demand and as soon as prices turn around, things will pick up here, adding two or three times as many wells are still drilled in Alberta, even during the slow times.
