SASKATOON – Crude oil production in Saskatchewan is marginally down from last year according to a University of Saskatchewan professor. The information comes from a Statistics Canada report released Monday stating Canada’s overall production of crude oil and equivalent products was up roughly 10 per cent in February, compared to a year ago.
Joel Bruneau says that it’s not necessarily bad news for everyone in the industry. Bruneau, a natural resource economist, said most of the production is coming from the Alberta oil sands, where long-term projects are going forward despite the drop in oil prices.
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“The standard oils, the heavy oils out of Saskatchewan and the lights oils that are coming out, they’re down marginally over the last year,” said Bruneau.
He added that for the Saskatchewan oil worker, the news is a mixed bag.
“We’re going to continue to see employment in the production carry on … employment in production of oils and refinery is probably not going to be really sensitive, it’s not going to be changing very much,” said Bruneau.
“It’s the new exploration; it’s the new wells that are going to be taking the hit, so that’s where the loss of employment will be taking place.”
The drop in the price of oil may hurt a company’s bottom line, according to Bruneau, however if a project is still technically profitable, it will continue to go forward.
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