Post by imSINGLEruRICH on Mar 26, 2007 20:11:04 GMT -5
By: bulletgirlny
26 Mar 2007, 08:36 PM EDT
Msg. 512024 of 512038
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SASKATCHEWAN NEWS HUGEEEEEEE,
Saskatchewan: resource-rich, people-poor
By Cameron French | March 25, 2007
SASKATOON, Saskatchewan (Reuters) - Known for its grain fields, billiard-table flatness and sparse population, Saskatchewan seems on the verge of transforming into an economic powerhouse, riding high on its vast stocks of uranium, potash and oil.
But while the riches beneath its surface are raising hopes of long-term prosperity in a province traditionally an economic laggard, Saskatchewan has yet to solve a long-standing problem -- finding people willing to come and live there.
Located smack in the middle of Canada's sprawling Prairies, Saskatchewan has been long known as the country's chief source of wheat and barley, and as a setting for jokes about the guy whose dog ran away last week ... and he's still watching it go.
But since 2002, the province has found itself in the sweet spot of global market forces, as soaring energy prices have driven oil exploration, while a nuclear power generating boom has fired uranium prices through the roof.
With an estimated 30 billion barrels of oil in the ground -- a number seen by many as conservative -- as well as the uranium and about two-thirds of the world's recoverable supply of potash, officials have been aggressively pitching the province as a target for investment.
"We're not just throwing wheat in the ground and watching it grow, we're breaking ground in other areas, too," said Energy and Industry Ministry spokesman Roy Schneider.
While the 30 billion barrels total is just an "in place" figure, or estimate of total resources, the Energy Ministry is quick to point out the province's proven reserves of conventional oil are just 20 percent less than those of top oil province Alberta.
Economic growth has been tracking above the national average over the past few years, but on a per capita basis, the difference is even more pronounced, with Saskatchewan growing 14.3 percent between 2001 and 2006, compared with 8.7 percent overall for Canada.
OIL BUT NOT PEOPLE
But while growth has been strong, the population has dwindled.
The province boasts an area larger than France, but with a population of less than 1 million, it has about one sixtieth the density.
"In terms of challenges, there's certainly the one related to population," said Marie-Christine Bernard, an analyst at the Conference Board of Canada, pointing to a lack of skilled labor, one underscored by Statistics Canada data showing the province had an unemployment rate of 4.0 percent in February.
It doesn't help being located next to Alberta, where the billions flowing into the oil sands have spawned stories of truck drivers pulling down C$60 an hour -- drawing workers from all parts of the country, including Saskatchewan.
In Saskatoon, which goes by the somewhat cheeky sobriquet "Paris of the Prairies," ostensibly due to the numerous bridges that cross the South Saskatchewan River, both the pluses and minuses of the boom are in evidence.
The manager of a local travel agency, who didn't want her name used, said she was pleased with increased business over the past few years, but that it had made hiring a problem.
"You can't just go grabbing people up off the street. It's tough finding qualified people," she said.
The labor issue has prompted the province to launch a multimillion-dollar advertising campaign to lure people to the province, portraying it as full of opportunity.
Meanwhile, provincial officials, such as Energy and Industry Minister Eric Cline, have been crisscrossing the globe pitching the province to investors.
Part of the optimism for the future lies in Saskatchewan's share of the vast oil sands, which extend across the border from Alberta, but have yet to be exploited in Saskatchewan.
One company, called Oilsands Quest, managed to buy up drilling rights for a sizable swath of land in the province's north, before the government put a moratorium on permits as it updates its regulations.
The company has drilled on about 2 percent of its permit area, but exploratory holes have intersected with bitumen, and independent assessments suggest at least 525 million barrels of resources, says Chief Executive Christopher Hopkins.
The province, meanwhile, has been busily lowering taxes to foster a more agreeable business environment.
"It is both a blessing and a curse living next door to Canada's oil giant, Alberta. The curse is you're constantly measured against them, the blessing is it makes you honest, it makes you competitive," said Schneider.
($1=$1.16 Canadian)
© Copyright 2007 The New York Times Company
26 Mar 2007, 08:36 PM EDT
Msg. 512024 of 512038
Jump to msg. #
SASKATCHEWAN NEWS HUGEEEEEEE,
Saskatchewan: resource-rich, people-poor
By Cameron French | March 25, 2007
SASKATOON, Saskatchewan (Reuters) - Known for its grain fields, billiard-table flatness and sparse population, Saskatchewan seems on the verge of transforming into an economic powerhouse, riding high on its vast stocks of uranium, potash and oil.
But while the riches beneath its surface are raising hopes of long-term prosperity in a province traditionally an economic laggard, Saskatchewan has yet to solve a long-standing problem -- finding people willing to come and live there.
Located smack in the middle of Canada's sprawling Prairies, Saskatchewan has been long known as the country's chief source of wheat and barley, and as a setting for jokes about the guy whose dog ran away last week ... and he's still watching it go.
But since 2002, the province has found itself in the sweet spot of global market forces, as soaring energy prices have driven oil exploration, while a nuclear power generating boom has fired uranium prices through the roof.
With an estimated 30 billion barrels of oil in the ground -- a number seen by many as conservative -- as well as the uranium and about two-thirds of the world's recoverable supply of potash, officials have been aggressively pitching the province as a target for investment.
"We're not just throwing wheat in the ground and watching it grow, we're breaking ground in other areas, too," said Energy and Industry Ministry spokesman Roy Schneider.
While the 30 billion barrels total is just an "in place" figure, or estimate of total resources, the Energy Ministry is quick to point out the province's proven reserves of conventional oil are just 20 percent less than those of top oil province Alberta.
Economic growth has been tracking above the national average over the past few years, but on a per capita basis, the difference is even more pronounced, with Saskatchewan growing 14.3 percent between 2001 and 2006, compared with 8.7 percent overall for Canada.
OIL BUT NOT PEOPLE
But while growth has been strong, the population has dwindled.
The province boasts an area larger than France, but with a population of less than 1 million, it has about one sixtieth the density.
"In terms of challenges, there's certainly the one related to population," said Marie-Christine Bernard, an analyst at the Conference Board of Canada, pointing to a lack of skilled labor, one underscored by Statistics Canada data showing the province had an unemployment rate of 4.0 percent in February.
It doesn't help being located next to Alberta, where the billions flowing into the oil sands have spawned stories of truck drivers pulling down C$60 an hour -- drawing workers from all parts of the country, including Saskatchewan.
In Saskatoon, which goes by the somewhat cheeky sobriquet "Paris of the Prairies," ostensibly due to the numerous bridges that cross the South Saskatchewan River, both the pluses and minuses of the boom are in evidence.
The manager of a local travel agency, who didn't want her name used, said she was pleased with increased business over the past few years, but that it had made hiring a problem.
"You can't just go grabbing people up off the street. It's tough finding qualified people," she said.
The labor issue has prompted the province to launch a multimillion-dollar advertising campaign to lure people to the province, portraying it as full of opportunity.
Meanwhile, provincial officials, such as Energy and Industry Minister Eric Cline, have been crisscrossing the globe pitching the province to investors.
Part of the optimism for the future lies in Saskatchewan's share of the vast oil sands, which extend across the border from Alberta, but have yet to be exploited in Saskatchewan.
One company, called Oilsands Quest, managed to buy up drilling rights for a sizable swath of land in the province's north, before the government put a moratorium on permits as it updates its regulations.
The company has drilled on about 2 percent of its permit area, but exploratory holes have intersected with bitumen, and independent assessments suggest at least 525 million barrels of resources, says Chief Executive Christopher Hopkins.
The province, meanwhile, has been busily lowering taxes to foster a more agreeable business environment.
"It is both a blessing and a curse living next door to Canada's oil giant, Alberta. The curse is you're constantly measured against them, the blessing is it makes you honest, it makes you competitive," said Schneider.
($1=$1.16 Canadian)
© Copyright 2007 The New York Times Company
