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.
Big question is…
Will all the over regulations stop investing.
Being fined out of existence is a distinct possibility.
Interesting article.
I remember a discussion in my oil company when horizontal wells were first starting. I wanted to drill multilateral wells, the drillers all said it was impossible.
My response? If you can do one, you can do many.
how long ago was that , multilaterals are at least 20 years ago as standard practice
Around 1988.
This should trigger the NDP to put out the usual disinfo about the gov’t “giving away” money to the oil and gas corporations.
And purposely conflating a royalty incentive with a subsidy.
Which the unintelligent will pick up and throw at conservatives like monkeys with feces.
I should point out this is one of the most significant developments in Saskatchewan oil since I started covering it in 2008. This is a huge story, and will dramatically impact the industry going forward.
I think Saskatchewan and Alberta are leading the way as people realize that the huge amount of money spent on wind and solar have been a complete waste of money. Gas and oil are vilified, yet the cheap reliable energy they provided created the modern world we inhabit.
Most of the population knows it. The politicians, however, are still in denial.