Count Crescent Point, Cenovus and Husky among the oil companies that are increasingly investing capital into Saskatchewan.
Earlier this week, Husky’s new CEO stated that the company is allotting close to half of their capital spending for 2017 in Saskatchewan, which will total over $1 billion. This decision is a transition to what they are calling “low sustaining capital operations.”
I think what the CEO of Husky is saying is they’re transitioning to low sustaining capital operations in the neighbouring province now because currently, the potential for operations like this don’t exist in Alberta.
Cenovus is increasing its spending in conventional plays, while Crescent Point is allotting 75% of their spending to projects in southwest Saskatchewan and the Williston Basin.
Saskatchewan doesn’t have a carbon tax, has a slightly lower corporate tax and the business environment is less tumultuous and more friendly so these companies prefer to invest their money and create jobs next door.
Imagine what a blanket carbon tax will do when our competitor, the United States, also doesn’t bring in this policy.
I have no doubt these companies will pick up and move to places that don’t have policies that work against businesses, meaning they’ll just be creating emissions elsewhere.
Unfortunately, Rachel Notley and her NDP caucus don’t realize that reality trumps their ideological plans which just don’t work.
That becomes even more obvious when we see what’s going on in Saskatchewan right now.