By any measure, Canada is already a global energy heavyweight. As the fourth-largest oil producer and fifth-largest natural gas producer in the world, our nation can become the world’s next energy superpower—with Saskatchewan as a key element.
Prime Minister Mark Carney’s vision of Canada as a global energy superpower in both conventional and clean energy is both bold and achievable. But to realize this vision, we must recognize and empower the provinces that are already doing the heavy lifting.
Growing up in Swift Current, I have seen firsthand Saskatchewan is a strong yet understated force in Canada’s energy landscape.
In 2024, the province produced approximately 500,000 thousand barrels of oil equivalent per day, representing 6% of Canada’s total hydrocarbon output. Notably, 90% of this production came from conventional oil sources, including light, medium, and heavy grades. This positions Saskatchewan as a critical contributor to Canada’s secure, reliable, and exportable energy supply.
Saskatchewan’s oil and gas industry is more than a source of energy; it’s a cornerstone of the provincial economy. In 2024, it contributed $11 billion—approximately 13%—of the province’s total GDP. It directly employed over 16,000 people and supported an estimated 40,000 jobs when indirect employment is included. These aren’t just numbers. They reflect livelihoods, communities, and futures built on responsible resource development.
Moreover, in the last 50 years, Saskatchewan’s oil and gas sector has paid over $45 billion in royalties. In 2024 alone, it contributed $1.6 billion in royalties and $0.3 billion in rural municipal property taxes. These revenues fund hospitals, schools, infrastructure, and social programs. They are the dividends of responsible development, and they underscore the sector’s role as a public good.
The province’s oil and gas resource is geographically and geologically diverse. From the Bakken and Torquay formations in the southeast to the Shaunavon and Viking plays in the southwest, and heavy oil-rich Mannville in the west, Saskatchewan’s subsurface is a mosaic of opportunity. Technologies like steam-assisted gravity drainage (SAGD) are already being deployed to extract heavy oil in the Lloydminster area, and this area is increasingly important for carbon dioxide enhanced oil recovery (EOR), particularly at Weyburn-Midale. This demonstrates the province’s commitment to innovation and environmental stewardship.
But Saskatchewan’s value proposition goes beyond barrels. It’s a jurisdiction that understands the importance of policy alignment, regulatory efficiency, and investment attraction. The Government of Saskatchewan’s Growth Plan targets an increase in oil production to 600,000 barrels per day by 2030. Achieving it would bolster Canada’s energy security, enhance our export capacity, and grow our role as a dependable global supplier.
To support this ambition, Saskatchewan has introduced a suite of forward-thinking policy tools designed to stimulate private sector investment. The Low Productivity and Reactivation Oil Well Program and the Multi-Lateral Oil Well Program incentivize capital deployment in mature fields. The Saskatchewan Petroleum Innovation Incentive and the Oil and Natural Gas Processing Investment Incentive offer transferable royalty credits for projects that commercialize new technologies or expand processing capacity. These are precisely the kinds of mechanisms that align with Prime Minister Carney’s call for a modern, competitive, and sustainable energy sector.
Yet, challenges remain. Capital expenditures in Saskatchewan’s upstream oil and gas sector have declined from a peak of $6.6 billion in 2014 to $2.5 billion in 2023. This drop mirrors a broader trend across Canada primarily driven by policy uncertainty, regulatory complexity, and intensifying global competition for energy investment.
The province leads in carbon capture technology and is making significant strides in small modular nuclear reactor technology, which has the potential to redefine low-emission power generation. These advancements can help the country achieve both its economic and climate objectives, aligning economic prosperity with emissions reductions.
Prime Minister Carney’s vision is not a pipe dream, but it will only be realized if we unlock the full potential of provinces like Saskatchewan. I know from experience this is a province that produces its resources responsibly, innovates relentlessly, and contributes meaningfully to Canada’s economy, environment, and energy future.
When Canada claims its place as a global energy superpower, Saskatchewan will not be on the sidelines. Let’s show the world what happens when prairie grit meets global ambition.
- Lisa Baiton is the President & CEO of the Canadian Association of Petroleum Producers