Letter to the Editor: More thoughts as to why activity levels are so low

Letter to the Editor: More thoughts as to why activity levels are so low

I read your articles regularly and with interest as I have been involved in the Saskatchewan oilpatch for the last 27 years, finding oil and building and selling small private companies. I think all your points about industry activity levels and how the provincial government can help are correct and appropriate. We should encourage them as much as possible.
I would like to add a couple more thoughts as to why activity levels are so low. 

Brian Zinchuk: Some suggestions for the Saskatchewan government to stimulate activity in the province’s oilpatch

Brian Zinchuk: Some suggestions for the Saskatchewan government to stimulate activity in the province’s oilpatch

As I noted on Sept. 28, there’s a substantial amount of concern in the oilpatch about the lack of activity despite high oil prices. As one person told me, “When oil was $40 a couple years ago I was optimistic that a price recovery would lead to increased activity in our region. Now that we’re struggling to keep a double digit rig count in SE Sask with $94 oil ($127 CAD) it’s tough to stay optimistic.”

Brian Zinchuk: With oil prices now at US$94 per barrel, why is industry activity akin to when it was half that?

Brian Zinchuk: With oil prices now at US$94 per barrel, why is industry activity akin to when it was half that?

In the last week I’ve spoke to some of the most knowledgeable people I know in the Saskatchewan oilpatch, business owners all, from Weyburn, Lloydminster and several from Estevan. There’s a rising chorus of dissatisfaction amongst them. Things should be booming in this province’s oilpatch, but they aren’t. And this disquiet could threaten the governing Saskatchewan Party with the potential loss of a key portion of its base.

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