Post by Catdaddy on Nov 27, 2007 9:43:06 GMT -5
Source: DOB Magazine
Economic Development
Bill Boyd: Saskatchewan's New Energy Minister Wants Long-Term Trust
By Mike Byfield
Bill Boyd, Saskatchewan's newly-appointed energy and resources minister, is a farmer, welder and former Calgarian who'd like to see the petroleum sector create a more permanent physical presence in his province. In its electoral victory on November 7, the Saskatchewan Party under Brad Wall took 38 out of 58 seats, terminating 16 years of rule by the New Democrats. "Until now, most oil and gas producers have operated here on a basis that enabled them to pack up and leave on a moment's notice," says Boyd, who assumed his new duties last week. "I don't blame the industry, given its treatment at times in the past, but we're in a position now to establish long-term trust."
The election was far closer than the lopsided seat totals indicate. If 5,569 voters in 10 closely-contested constituencies had voted NDP rather than SP, former Premier Lorne Calvert would still be in office with a 30-28 majority in the legislature. But Boyd (shown here) believes his party's grip on the electorate's loyalty is going to strengthen over the next four years. "Ridings that elected Saskatchewan Party MLAs by narrow margins in the 1999 and 2003 elections have consistently re-elected them by much larger margins," he points out. The minister predicts the same pattern will repeat itself in future.
Boyd's grandfather homesteaded land near Eston, north of Swift Current. Son and grandson followed in his footsteps as farmers. At the beginning of his career, though, Bill and his wife Lynn (a hometown sweetheart) lived in Calgary for nine years. There the future politician studied welding technology at SAIT Polytechnic and then went to work fabricating compressors and other heavy equipment. On returning to Eston, the couple began operating a technically top-tier farm that produces pedigreed seed for grain and oilseed crops.
The Eston area is a well-known stronghold for both agricultural innovations and market-oriented politics. In 1991, after the incumbent Conservative MLA for Kindersley stepped down, Boyd took the nomination. His timing could have been luckier. The Conservative government, which had buried itself in provincial debt under Grant Devine, was hurled from office in the subsequent election. Among the party's meager remaining caucus of 10 MLAs was the cheerful freshman from southwestern Saskatchewan.
Several members of Devine's administration were subsequently convicted of fraud, prompting the former premier to resign the leadership. Boyd ran for his party's top job, won and stepped into some exceptionally uncomfortable shoes. Thanks to the scandals, the Tories took just 16% of the popular vote in the 1995 election, electing just five members. Recognizing their desperate need for renewal, Conservatives and some Liberals agreed to merge, forming the Saskatchewan Party in 1997.
Boyd, concerned that the SP distinguish itself from the Conservatives, did not contest the leadership. Under Elwin Hermanson, an unassuming farmer, the new party recovered to the point of taking an impressive 26 seats in the 2003 election. The Liberals were shut out, as they were again this fall. The SP, in a successful move to increase their appeal in Saskatoon and Regina, acclaimed Brad Wall (shown here) as leader in 2004.
Previously the business development director for Swift Current, Wall can eloquently project himself as a stable, friendly moderate. He steered the party toward the centre with a promise not to privatize any of Saskatchewan's 128 Crown corporations. The Saskatchewan Party comes into office at a time of surging prosperity across the province, which should help the centre-right administration reinforce its political base in a traditionally left-leaning province.
The province's population is rising slightly, reversing a long-term net migration. Grain and cattle are doing relatively well. Fundamentally, though, the boom is fuelled by industries that fall within Boyd's energy and resources jurisdiction. Promising developments include the following:
* The Viewfield Bakken play in southeastern Saskatchewan is Canada's largest onshore crude discovery since 1957, and its proven reserve base continues to increase. Crescent Point Energy Trust currently estimates the oil in place at 1.5 billion barrels.
* Oilsands Quest Inc. has launched Saskatchewan's first bitumen play, located on a 1,000 square kilometre parcel in the near-deserted northwestern region of the province. The company believes this land probably contains 10 billion barrels of bitumen, although only a fraction of that resource has been deemed commercially recoverable at this time.
* Uranium's price has soared from an all-time low of US$7 per pound in 2001 to nearly $100, with the spot price peaking at more than $130 this summer. Saskatchewan's ore is up to 24% pure uranium oxide, easily the richest in the world, and it's also the largest global producer. Cameco and Areva, the two dominant mining companies, are both investing heavily in expansion.
* Saskatchewan's ten potash mines make it the largest global supplier of that mineral, a crucial component for manufacturing fertilizer. Since 2004, prices have nearly doubled and are expected to continue breaking records in 2008.The three primary producers - PotashCorp, Mosaic Potash and Agrium Inc. - enjoy the planet's lowest cost reserves and are investing heavily in new capacity.
* Shore Gold Inc. is the primary operator in the diamond prospective district around Fort a la Corne. This area, about 60 kilometres east of Prince Albert, harbours the world's largest kimberlite deposit, totalling more than 1.1 billion tonnes. Shore, a junior whose market capitalization stands at $750 million on the strength of this project, hopes to make a go-ahead decision for a diamond by the end of 2008.
In general, resource operators were well-disposed toward Calvert's administration. "There are housekeeping items to attend to but nothing major," says Carl Henneberg, who chairs the Saskatchewan committee for the Small Explorers and Producers Association of Canada. Jason Clemens, director of fiscal studies for the Fraser Institute, comments, "From the taxation perspective, Saskatchewan is now competitive with the most attractive provinces and states, and that discipline has undoubtedly helped generate the current improvement in its economy."
Norman Wallace, a long-time board member for the Prairie Policy Centre in Saskatoon, says the massive net emigration of past decades - 120,000 between 1981 and 2001, from a population base of almost one million - has left a serious gap in the ranks of Saskatchewan's professions. "We lost a disproportionate share of our best-educated young people," he reports. "It's the same story with engineers, accountants, doctors and so on. We have young and old but little in between."
Although Wall is pledged not to sell Crown corporations, he may open certain markets (e.g. local telephone services) to greater competition. Also, some provincial organizations may face public investigation following the NDP's loss of power. Three years ago, the Saskatchewan government forfeited $7.9 million to settle a lawsuit by potato farmers and investors. The plaintiffs alleged fraud by SaskWater's SPUDCO (Saskatchewan Potato Utility Development Company). And the Canadian Taxpayers Federation is demanding an investigation into how the province lost $200 million on a controversial pulp mill at Meadow Lake.
The new energy minister is familiar with petroleum, in part because his riding includes significant heavy oil operations. Over the long haul, Boyd says, Saskatchewan must foster respect between government, industry and the public. "To develop our full potential as a province, we need more research, more value-added infrastructure, more headquarters and other tangible forms of investment," he comments. The private sector will make those commitments, according to the new minister, as his government gradually fosters a more powerful business culture in the heartland of English Canada's socialist movement.
Economic Development
Bill Boyd: Saskatchewan's New Energy Minister Wants Long-Term Trust
By Mike Byfield
Bill Boyd, Saskatchewan's newly-appointed energy and resources minister, is a farmer, welder and former Calgarian who'd like to see the petroleum sector create a more permanent physical presence in his province. In its electoral victory on November 7, the Saskatchewan Party under Brad Wall took 38 out of 58 seats, terminating 16 years of rule by the New Democrats. "Until now, most oil and gas producers have operated here on a basis that enabled them to pack up and leave on a moment's notice," says Boyd, who assumed his new duties last week. "I don't blame the industry, given its treatment at times in the past, but we're in a position now to establish long-term trust."
The election was far closer than the lopsided seat totals indicate. If 5,569 voters in 10 closely-contested constituencies had voted NDP rather than SP, former Premier Lorne Calvert would still be in office with a 30-28 majority in the legislature. But Boyd (shown here) believes his party's grip on the electorate's loyalty is going to strengthen over the next four years. "Ridings that elected Saskatchewan Party MLAs by narrow margins in the 1999 and 2003 elections have consistently re-elected them by much larger margins," he points out. The minister predicts the same pattern will repeat itself in future.
Boyd's grandfather homesteaded land near Eston, north of Swift Current. Son and grandson followed in his footsteps as farmers. At the beginning of his career, though, Bill and his wife Lynn (a hometown sweetheart) lived in Calgary for nine years. There the future politician studied welding technology at SAIT Polytechnic and then went to work fabricating compressors and other heavy equipment. On returning to Eston, the couple began operating a technically top-tier farm that produces pedigreed seed for grain and oilseed crops.
The Eston area is a well-known stronghold for both agricultural innovations and market-oriented politics. In 1991, after the incumbent Conservative MLA for Kindersley stepped down, Boyd took the nomination. His timing could have been luckier. The Conservative government, which had buried itself in provincial debt under Grant Devine, was hurled from office in the subsequent election. Among the party's meager remaining caucus of 10 MLAs was the cheerful freshman from southwestern Saskatchewan.
Several members of Devine's administration were subsequently convicted of fraud, prompting the former premier to resign the leadership. Boyd ran for his party's top job, won and stepped into some exceptionally uncomfortable shoes. Thanks to the scandals, the Tories took just 16% of the popular vote in the 1995 election, electing just five members. Recognizing their desperate need for renewal, Conservatives and some Liberals agreed to merge, forming the Saskatchewan Party in 1997.
Boyd, concerned that the SP distinguish itself from the Conservatives, did not contest the leadership. Under Elwin Hermanson, an unassuming farmer, the new party recovered to the point of taking an impressive 26 seats in the 2003 election. The Liberals were shut out, as they were again this fall. The SP, in a successful move to increase their appeal in Saskatoon and Regina, acclaimed Brad Wall (shown here) as leader in 2004.
Previously the business development director for Swift Current, Wall can eloquently project himself as a stable, friendly moderate. He steered the party toward the centre with a promise not to privatize any of Saskatchewan's 128 Crown corporations. The Saskatchewan Party comes into office at a time of surging prosperity across the province, which should help the centre-right administration reinforce its political base in a traditionally left-leaning province.
The province's population is rising slightly, reversing a long-term net migration. Grain and cattle are doing relatively well. Fundamentally, though, the boom is fuelled by industries that fall within Boyd's energy and resources jurisdiction. Promising developments include the following:
* The Viewfield Bakken play in southeastern Saskatchewan is Canada's largest onshore crude discovery since 1957, and its proven reserve base continues to increase. Crescent Point Energy Trust currently estimates the oil in place at 1.5 billion barrels.
* Oilsands Quest Inc. has launched Saskatchewan's first bitumen play, located on a 1,000 square kilometre parcel in the near-deserted northwestern region of the province. The company believes this land probably contains 10 billion barrels of bitumen, although only a fraction of that resource has been deemed commercially recoverable at this time.
* Uranium's price has soared from an all-time low of US$7 per pound in 2001 to nearly $100, with the spot price peaking at more than $130 this summer. Saskatchewan's ore is up to 24% pure uranium oxide, easily the richest in the world, and it's also the largest global producer. Cameco and Areva, the two dominant mining companies, are both investing heavily in expansion.
* Saskatchewan's ten potash mines make it the largest global supplier of that mineral, a crucial component for manufacturing fertilizer. Since 2004, prices have nearly doubled and are expected to continue breaking records in 2008.The three primary producers - PotashCorp, Mosaic Potash and Agrium Inc. - enjoy the planet's lowest cost reserves and are investing heavily in new capacity.
* Shore Gold Inc. is the primary operator in the diamond prospective district around Fort a la Corne. This area, about 60 kilometres east of Prince Albert, harbours the world's largest kimberlite deposit, totalling more than 1.1 billion tonnes. Shore, a junior whose market capitalization stands at $750 million on the strength of this project, hopes to make a go-ahead decision for a diamond by the end of 2008.
In general, resource operators were well-disposed toward Calvert's administration. "There are housekeeping items to attend to but nothing major," says Carl Henneberg, who chairs the Saskatchewan committee for the Small Explorers and Producers Association of Canada. Jason Clemens, director of fiscal studies for the Fraser Institute, comments, "From the taxation perspective, Saskatchewan is now competitive with the most attractive provinces and states, and that discipline has undoubtedly helped generate the current improvement in its economy."
Norman Wallace, a long-time board member for the Prairie Policy Centre in Saskatoon, says the massive net emigration of past decades - 120,000 between 1981 and 2001, from a population base of almost one million - has left a serious gap in the ranks of Saskatchewan's professions. "We lost a disproportionate share of our best-educated young people," he reports. "It's the same story with engineers, accountants, doctors and so on. We have young and old but little in between."
Although Wall is pledged not to sell Crown corporations, he may open certain markets (e.g. local telephone services) to greater competition. Also, some provincial organizations may face public investigation following the NDP's loss of power. Three years ago, the Saskatchewan government forfeited $7.9 million to settle a lawsuit by potato farmers and investors. The plaintiffs alleged fraud by SaskWater's SPUDCO (Saskatchewan Potato Utility Development Company). And the Canadian Taxpayers Federation is demanding an investigation into how the province lost $200 million on a controversial pulp mill at Meadow Lake.
The new energy minister is familiar with petroleum, in part because his riding includes significant heavy oil operations. Over the long haul, Boyd says, Saskatchewan must foster respect between government, industry and the public. "To develop our full potential as a province, we need more research, more value-added infrastructure, more headquarters and other tangible forms of investment," he comments. The private sector will make those commitments, according to the new minister, as his government gradually fosters a more powerful business culture in the heartland of English Canada's socialist movement.
