Remember when he said the Liberals were promising teeny tiny deficits? Fortune teller, that one. “The budget will balance itself.”
Speaking of the oil show, there are a number of people who will be honored for their life’s work. Dean Gilliss is the first profile I’ve written this year.
Also: Apparently April 22 was Earth Day. Who knew? I must have missed that one. Anyhow, Biden used it as an excuse to throw another $7 billion at solar.
For those who are not aware, helium production is almost indistinguishable from natural gas production, and requires oil and gas service companies to make it happen. Same drilling rig, same service rig, same lease builders, same facility builders, same just about everything. It’s the “other natural gas,” as it were. And Saskatchewan is aiming to hit 10% of the global market by 2030.
At the same time that French President Emmanuel Macron is threatening to send troops to Ukraine to fight against Russia, his country is fueling the Russian war effort by purchasing €600 million worth of natural gas from Moscow in the first three months of 2024.
Every two months Saskatchewan holds a competitive auction for mineral rights for petroleum and natural gas. If a company is interested in getting the Crown mineral rights to a few sections, for instance, they will apply to the government to have that land posted. Then at the next land sale, anyone can bid on it, and whoever bids the highest, wins. So even if a company had does all sorts of exploration and research to secure a certain piece of property, another company can notice what’s been posted on the land sale and outbid them. But whoever bids on it has certain spending obligations within a certain amount of time or they will lose those rights and they can go back up on the auction block again if they are once again posted. This is quite common.
It took me a while to get to this as it came out last week, but that gave me the time to dig deeper and discover that a good chunk of the activity appears to be from Saskatchewan-based junior producers. And that’s pretty exciting news. Yes, there’s still a substantial amount hidden by land agent deals, but seeing the juniors getting in the game like this is a sign of confidence in the industry. And this was posted BEFORE the multilateral announcement. So I wonder what will happen a few months down the road, with postings after the multilateral announcement?
Province invokes Saskatchewan First Act, again, building its case against the federal government’s never-ending smothering greenhouse gas emissions rules, regulations and legislation.
I was up in Saskatoon Monday to cover this important announcement. Saskatchewan’s not going to take it, anymore. Kinda like Twisted Sister. For some reason, I keep referencing that song.
The member of parliament who on Feb. 5 introduced one of the most draconian laws against free speech (and that’s saying something in recent years) has decided not to run again in the next election. NDP MP Charlie Angus is calling it quits at the end of this term, after 20 years.
He’s the guy who wanted to ban promotion of fossil fuels, having introduced a private members bill which would have meant every ad on Pipeline Online, for instance, could incur up to a half million dollar fine.
The original pipeline was built over 65 years ago with equipment that largely didn’t even have hydraulics, and absolutely did not have computers, GPS, laser measurement or anything else like that. And they did it in 16 months.
As a note, The Alliance Pipeline runs right through Saskatchewan. I started work on it three weeks after my May, 1999 wedding. I was the only guy on my road bore crew of 12 married once! Most were on their second marriage, a few on their third, one I think on his fourth. At that point you walk into a bar, find a woman you don’t like, and give her your house.
In six weeks, it’ll be 25 years for us. So that pipeline project has some meaning for me.
It takes massive amounts of energy to power the data center brains of popular artificial intelligence models. That demand is only growing. In 2024, many of Silicon Valley’s largest tech giants and hoards of budding, well-funded startups have (very publically) aligned themselves with climate action–awash with PR about their sustainability goals, their carbon neutral pledges, and their promises to prioritize recycled materials. But as AI’s intensive energy demands become more apparent, it seems like many of those supposed green priorities could be jeopardized.
It seems that the environmentalist movement has come to the conclusion that there is good fracking and bad fracking. Bad fracking is when we drill a well and extract hydrocarbons. Good fracking is when we expend huge sums to stuff a perfectly harmless gas back down those same holes. It’s a variation on Keynesian economics: wherever we find existing holes, we should pay people to fill them in, even if there is no need to do so. The article goes on to point out all sorts of potential problems with this idea, but then Keynesians will likely argue that remediation efforts will “stimulate” the economy.
With support from the Biden administration and billions of dollars in new subsidies and tax incentives, energy companies and others are planning to capture millions of tons of industrial carbon dioxide emissions and then pipe the climate pollutant for underground storage, part of an effort to reduce the nation’s greenhouse gas pollution. Federal and state regulators are reviewing 69 projects or permits to store CO2 underground, with 24 of those in Louisiana. Nine projects have alreadybeen approved while one more, in California, is pending.
Are multi-laterals the next big thing in oil? Saskatchewan bets heavy on it with new incentive program. This is the largest change in oil royalties in decades, as the government hopes to incentivize activity and production. It’s a big shift for a government that for its entire 16 years in office said it wasn’t touching a thing when it comes to royalties.
Let me put this into perspective – for the several years Bill Boyd was energy minister, he always gave the same speech, which basically went like this: “The premier has told me to say thank you. Thank you for the jobs, thank you for the taxes, thank you for the royalties and investment. And we’re not touching a thing when it comes to royalties.”
Usually whenever someone mentions royalty changes, it’s with the intention of raising them. This is the opposite, providing a royalty incentive – NOT a holiday – to get more activity and production going.
Brian Crossman writes about hiring young people in the oilpatch. There’s different expectations today. But really, this applies to all sectors, methinks.
A while back he wrote this column about work ethic, which is the best I’ve seen. I frequently quote it to my own kids, one of whom is in the trades and one will be going into the trades.
The team riffs with Doomberg, a renowned energy analyst, to discuss a range of issues from the global energy landscape to geopolitical tensions and the changing nature of warfare. The conversation also delves into the intricacies of the global natural gas market, the impact of sanctions on Russia, and the potential future of nuclear energy.
Doomberg is a good, though pricey Substack to subscribe to. I wish more of his material was open to free viewing.
US Bureau of Land Management accepts bids for the sale of Federal Helium System. FYI the US Govt getting out of #helium is what’s driving Saskatchewan’s burgeoning industry
(I’m fairly certain Premier Moe is tired about me asking about this. I was still talking about it two years ago, which was four years after it was supposed to have been completed. But it’s worth a shot.)
On Monday, Saskatchewan announced a new comprehensive program to attract investment to the province. One of the items is a new program to incentive multi-lateral wells. That’s a well that looks like a herringbone or spiderweb, with lots of legs and increased production.
The question I will be asking soon is if companies are already doing this, why do we need an incentive? Are we leaving money on the table, or is there an expectation of a lot more returns?
