SASKATOON, SASK. — Saskatchewan officials have announced a program intended to improve the petroleum industry’s long-term operating environment, sustain jobs and increase investment activity in the province.
The Waterflood Development Program will encourage companies to convert producing wells into waterflood injection wells or to drill new dedicated waterflood injection wells. The province expects at maximum uptake, the program will support $375 million in new investment over the next five years and 500 new permanent jobs.
The 10-year plan for the program is to generate around $245 million in provincial royalties.
The program also aims to enhance the competitiveness of Saskatchewan’s energy industry by facilitating a sustainable increase of production capacity by an estimated 72 million barrels over the course of the next 35 years.
“Waterflooding is a proven enhanced oil recovery strategy that is good for sustainability and good for the environment,” said Energy and Resources Minister Bronwyn Eyre in a press release. “In the face of a rapidly changing global market, Saskatchewan is addressing competitiveness by supporting our province’s largest economic sector with a cost-effective policy that encourages long-term capital investment.”
Eyre explained waterflooding is a secondary recovery oil production technique that re-pressurizes an oil reservoir to boost total oil recovery from the reservoir. The program intends to encourage this positive production practice.
“On behalf of the members of Energy Producers Association of Canada, it is a pleasure to support the good work of the Government of Saskatchewan,” added Energy Producers Association of Canada President Tristan Goodman. “Waterflooding is an important long term reservoir management strategy that improves oil recovery. Given the current challenges facing the western Canadian oil industry, initiatives such as this will assist the sector over the next few years.”
Recent Comments
comments for this post are closed