BlackPearl Resources is building a second heavy oil project on Onion Lake Cree Nation land in Saskatchewan— a mile away from the Alberta border. That’s because production costs will be $10 U.S. per barrel cheaper than if they built it in Alberta.
And they’re not the only ones that have ditched Alberta for the time being and invested in Saskatchewan instead.
Husky Energy recently sunk a billion into their heavy oil operations in Saskatchewan as part of their low sustaining capital plan, and Crescent Point, a company headquartered in Calgary, made it clear that if the NDP weren’t willing to play ball, they’d sink their money into Saskatchewan, becoming that province’s largest oil producer.
Let this be a testament to all those who say low oil prices are the only thing killing Alberta’s oil and gas industry.
Not only do we have domestic and international companies fleeing the province, but we have companies parking their cash a mile away to avoid Rachel Notley’s carbon tax, higher corporate taxes and higher royalties.
Saskatchewan has everything these companies want except perhaps less potential to develop resources than there is in Alberta, otherwise more companies would be flocking to that province to reap the rewards of a more business friendly government.
Between pipeline stalls, taxes and emissions policies built to punish the oil and gas industry coming from both the federal and provincial governments, Alberta and Canada as a whole are looking less and less attractive for these companies.
Businesses want to make a buck, and a buck is a buck whether it’s in Alberta or anywhere else. And that’s something that the NDP just can’t seem to figure out.