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Energy

Petroleum
The industry directly or indirectly employs about 19,000 people

Saskatchewan is the second largest petroleum producing region in Canada

Total recoverable oil reserves as of January 1, 1998 were estimated at 170 million cubic metres

More than 18,000 active wells produce in excess of 400,000 barrels of oil per day

Twenty per cent of all Canadian production
- about 55 per cent of Saskatchewan crude oil is exported to the United States
- 20 per cent is exported to other provinces
- 25 per cent is used by Saskatchewan's refining industry to produce gasoline, diesel fuel, bunker fuel, propane, butane and asphalt

Sales of crude oil were $2.85 billion in 1997, on production of 23.31 million cubic metres

Oil production records have been broken every year since 1993

The 2,804 oil wells drilled in 1997 was an all-time record

Multinational oil companies and smaller Saskatchewan and Canadian-owned companies are all active in exploration and extraction activities
- smaller companies are an especially strong force in petroleum development
- Saskatchewan also has an active and expert industry providing exploration and drilling services and supplies to the oil and natural gas business

Refining and upgrading capabilities are among the most advanced in Canada
- Consumer's Co-operative Refineries Ltd. (CCRL) in Regina processes 50,000 barrels of crude oil per day
- NewGrade Energy Inc. was Canada's first heavy oil upgrader. Opened in 1988 adjacent to CCRL in Regina, the refinery produces 55,000 barrels of synthetic oil per day
- Bi-Provincial Upgrader located near Lloydminster has been exceeding 65,000 barrels of synthetic crude output per day

Numerous pipeline systems cross or originate in Saskatchewan, delivering crude oil, natural gas and petroleum products to local consumers and export markets

Major oil pipeline systems in Saskatchewan include:
- Cactus Lake Pipeline System
- Husky Oil Ltd.
- Interprovincial Pipe Line Inc.
- Mid-Saskatchewan Pipelines Ltd.
- Moose Jaw Asphalt Inc.
- Murphy Oil Company Ltd.
- Producers Pipeline Inc.
- South Saskatchewan Pipe Line Company
- Wascana Energy Inc.
- Wascana Pipe Line Ltd.
- Westspur Pipe Line Company Inc.

Major natural gas pipeline systems in Saskatchewan include:
- Foothills Pipe Lines Ltd.
- TransCanada Pipe Lines
- TransGas Ltd.

Major liquid petroleum gas and refined products pipeline systems in Saskatchewan include:
- Amoco Kerrobert Pipe Line Ltd.
- Cochin Pipe Lines Ltd.
- Interprovincial Pipe Line Inc.
- Petroleum Transmission Company (Petro-Canada)

Natural Gas
Distributed in Saskatchewan by SaskEnergy, a provincial Crown corporation over 60,000 kilometres (37,000 miles) of distribution lines

Supplies more than 115 billion cubic feet of natural gas annually to about 305,000 customers

Although Saskatchewan has always had significant reserves of natural gas, intensive development has begun only in the last decade in response to deregulation of markets and prices in the mid-1980s

Established reserves are estimated at 79 billion cubic metres

Total recoverable reserves are estimated at 169 billion cubic metres

The value of natural gas sales in 1997 was $393 million on sales of 7,781 million cubic metres

At December, 1997, there were 7,876 active wells in Saskatchewan

Coal
Saskatchewan is the third largest coal producer in Canada

The coal resources in Saskatchewan are estimated at 7.6 billion tonnes, enough to last hundreds of years at current production rates

Saskatchewan's coal is lignite coals used almost exclusively on site for power production

Electrical power
Produced and distributed by the Saskatchewan Power Corporation (SaskPower), a provincial Crown corporation

Service area is 526,000 square kilometres (327,225 square miles)

Transmission network of about 146,000 kilometres (90,700 miles) in length

Most of the power is produced by:
- four coal-fired thermal plants rated at a total of generating capacity of 1,997,000 kilowatts
- seven hydro-electric power stations, rated at a total generating capacity of 847,000 kilowatts
- three natural gas-fueled turbine power plants, rated at a total generating capacity of 136,000 kilowatts
Saskatchewan is essentially self-sufficient in power, but does use grid ties to move power in and out of the province as needed

Mining

Spectacular growth - total Saskatchewan mineral sales in 1997 were $2.3 billion

Potash was the sales leader at $1.5 billion, followed by uranium sales of $557 million

Creation of new technologies such as:
- solution extraction of potash
- the methods pioneered to sink 1,000 meter (0.62-mile) potash mine shafts through water saturated underground strata
- Saskatchewan is considered to be a world leader in mining robotics (including the only company in North America making robotic equipment for the copper smelting and refining industry)
- industry exploration expenditures in 1998 are expected to reach $40 million

Potash
Saskatchewan is the largest potash producer in the world

Saskatchewan supplies 30 per cent of world demand for potash and have resources to meet projected world demand for hundreds of years

1997 potash sales were worth $1.5 billion

About two-thirds of Saskatchewan potash is exported to the United States, and the province is a major potash supplier to Pacific Rim markets

Uranium
Saskatchewan is the largest uranium producer in the world, as well as the world's largest exporter of uranium

Saskatchewan accounts for 32 per cent of the world's, and 100 per cent of Canada's uranium production

At current production levels, Saskatchewan has a more than 30 year supply of uranium

1997 Saskatchewan uranium sales were $557 million

Home of the world's largest uranium producer - Cameco Corporation

Site of the world's largest uranium mine - Key Lake

Site of the world's largest, high grade uranium deposit - McArthur River deposit

Oil
Second largest crude oil producer in Canada

Coal
Third largest coal producer in Canada

Precious and base metals
Saskatchewan has deposits or promising showings of various metals and metal byproducts, including:
- copper
- zinc
- gold
- lead
- cadmium
- nickel
- platinum
- silver
- selenium
- tellurium
- Gold sales in 1997 were valued at $73 million

Diamonds
Discovery of kimberlite pipes and the first diamond discoveries have led to extensive diamond exploration and drilling by more than 30 companies. Discoveries are being evaluated for diamond content and production potential

Industrial minerals
Saskatchewan has deposits of:
- natural sodium sulphate
- high-grade silica sand
- clays
- peat
- salt
- sand and gravel

Primary Forestry and Wood Products

Primary Forest
More than half of Saskatchewan is forested -- about 355,000 square kilometres

121,000 square kilometres of forest are under major commercial development

The commercial timber area is about 275 kilometres wide

Softwoods include:
- balsam fir
- black spruce
- jack pine
- lodgepole pine
- tamarack
- white spruce

Hardwoods include:
- American elm
- balsam poplar
- bur oak
- green ash
- Manitoba maple
- trembling aspen
- white birch

Long run sustainable yield:
- softwood -- 3.79 million cubic metres
- hardwood -- 3.23 million cubic metres

North America's largest white birch forest

The Industry
An innovative industry experiencing excellent growth, with prospects that are even better

Canada's first waferboard plant

The world's first closed-loop, liquid effluent-free hardwood pulp mill

As of 1997, there were approximately 300 forestry industry firms in Saskatchewan, including:
- a hardwood pulp mill
- a softwood pulp-and-paper facility
- an oriented strand board plant
- a plywood operation
- lumber operations
- sawmills and treatment facilities which produce:
-treated lumber, posts, poles and rails
-house logs and shingles
-fuel wood
-logs and pulpwood
-wood chips

Total sales for 1997 were about $700 million

Those sales generated more than 6,000 direct jobs and 3,000 indirect jobs

Wood Products

Global demand for processed wood products presents Saskatchewan with the opportunity to take advantage of its abundant timber resources to generate jobs and growth in the manufacturing sector.

Saskatchewan’s forest-based economy is being significantly expanded by reallocating existing timber supply. The new allocations will help maintain a sustainable primary forest sector and expand the secondary wood manufacturing sector.

Saskatchewan is consolidating its position as a leader in secondary wood manufacturing by making the transition from being a major producer of raw forestry commodities, to establishing ourselves as a world supplier of high quality, high value, wood products.

Saskatchewan’s forest industry is primarily focused on timber harvesting and semi-processing of products into relatively lower-value products such as poles, wood chips, pulp and paper, and lumber.

The new focus is on processing forest resources into higher value, consumer-ready products. Significant wood products include cabinets, windows, furniture, doors, building components, remanufactured products and pallets used for shipping.

Potential Growth

Saskatchewan’s secondary wood manufacturing sector is in an early developmental state and has enormous potential for growth.

Saskatchewan harvested only 48 per cent of its Annual Allowable Cut (ACC) in 1996. The plan is to increase the harvest to 84 per cent of the ACC, providing a strong base for increased secondary manufacturing.

The forestry industry in Saskatchewan is definitely ripe for expansion and the benefits grow well beyond lumber. The industry needs everything from furniture and newsprint to trucks and equipment. With responsible forest management the opportunities are as vast as the land.

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