Oil and Gas

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• Production
• Trade and Transportation

Production

Crude Oil

• In 2023, Saskatchewan produced 457.0 thousand barrels per day (Mb/d) of crude oil (including condensate and pentanes plus) (Figure  3). Saskatchewan is the second largest crude oil producing province in Canada after Alberta, accounting for 9% of Canada’s crude oil production in 2023.
• Saskatchewan mainly produces heavy oil. In 2023, Saskatchewan produced 296.5 Mb/d of conventional heavy oil and 157.0 Mb/d of conventional light oil. Saskatchewan’s lighter crudes are produced primarily from tight wells.
• Most of the growth in Saskatchewan’s oil production from 2010 to 2015 was from tight oil. Since then, production is increasingly coming from new thermal heavy oil projects. Thermal heavy oil projects apply steam-assisted gravity drainage (SAGD) to heavy oil fields primarily in the Lloydminster area.
• Saskatchewan also has two commercial-scale carbon dioxide enhanced oil recovery (EOR) developments at Weyburn and Midale. The two projects inject roughly two megatonnes of carbon dioxide annually.^Footnote 9 The carbon dioxide comes from the Boundary Dam Power Station in Estevan and the Great Plains Synfuels plant in North Dakota.
• Cenovus’s Lloydminster Upgrader converts heavy oil from Saskatchewan and Alberta to synthetic oil and produces some diesel fuel. The upgrader has the capacity to process 81.5 Mb/d of heavy oil.
• Saskatchewan’s remaining resource of crude oil is estimated to be 7.6 billion barrels as of December 2021.^Footnote 10

Refined Petroleum Products (RPPs)

• There are two refineries in Saskatchewan with a combined capacity of 152 Mb/d: Federated Co-operatives Limited’s (FCL) Co-op Refinery Complex in Regina and Gibson Energy’s Moose Jaw facility. Both refineries consume western Canadian crude oil.
• The Co-op Refinery has a capacity of 130 Mb/d and produces a variety of RPPs, such as gasoline, diesel, and heavy fuel oil. The Co-op Refinery also has an upgrader to process heavy oil into lighter, synthetic crude oil.
• FCL has proposed a new renewable diesel plant adjacent to the Co-op Refinery, designed to manufacture up to 15 Mb/d of renewable diesel.^Footnote 11
• The Moose Jaw Refinery has a capacity of 22 Mb/d. It processes heavy crude oil into a variety of products, such as asphalt.
• Saskatchewan produces a net surplus of RPPs. Some RPPs are transferred to Alberta and Manitoba, and small volumes are also exported to the United States (U.S.).

Natural Gas/Natural Gas Liquids (NGLs)

• In 2023, natural gas production in Saskatchewan averaged 309.7 million cubic feet per day (MMcf/d) (Figure 3). Saskatchewan produced 2% of Canada’s total natural gas production in 2023.
• Historically, most natural gas production came from wells in the southwest corner of Saskatchewan. An increasing amount of natural gas is now produced elsewhere in the province as a byproduct of oil production (solution gas) from the Viking Formation, the Bakken Formation, and other formations that produce tight oil.
• Saskatchewan’s total potential for recoverable, sales-quality gas is estimated to be 13.4 trillion cubic feet (Tcf), with 4.7 Tcf remaining at year-end 2021.^Footnote 12

Uranium

• Saskatchewan is currently the only province that produces uranium in Canada. Production comes mainly from Cameco’s McArthur River/Key Lake mine in northern Saskatchewan, which is the largest high-grade uranium mine in the world.^Footnote 13 Production at McArthur River/Key Lake was suspended in January 2018 due to weak uranium prices, but was restarted in November 2022.^Footnote 14

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Trade and Transportation

Crude Oil and Liquids

• The Enbridge Mainline and South Bow’s (formerly TC Energy) Keystone Pipeline, which ship western Canadian crude oil and liquids to the U.S. and eastern Canadian markets, enter Saskatchewan at the Alberta border and flow eastward to Manitoba and eventually to the U.S. (Figure 4).
• The Enbridge Mainline has two terminals in Saskatchewan. At the Kerrobert terminal, Enbridge receives crude oil from gathering systems as well as natural gas liquids from Pembina’s Kerrobert pipeline. At the Regina terminal, Enbridge can receive crude oil from Plains Midstream’s Wascana and South Saskatchewan pipelines. The Regina terminal also delivers crude oil to FCL’s Co-op Refinery Complex.
• The Saskatchewan Pipeline transports RPPs from an Enbridge Mainline delivery point at Milden to terminals in Saskatoon.
• Enbridge’s Bakken and Kingston Midstream’s Westspur pipelines transport crude oil produced in southeastern Saskatchewan and North Dakota to the Enbridge Mainline terminal at Cromer, Manitoba. Enbridge Bakken has a capacity of 145 Mb/d while Westspur has a capacity of 247 Mb/d.
• Two pipelines that import condensate from the U.S. run through Saskatchewan. The Southern Lights Pipeline enters Saskatchewan at the border with Manitoba and delivers condensate to Edmonton, Alberta. The Cochin Pipeline enters Saskatchewan from the U.S. at Elmore and delivers condensate westward to Fort Saskatchewan in northern Alberta. Pembina acquired the Cochin Pipeline from Kinder Morgan in December 2019.^Footnote 15 The condensate is used for blending with bitumen extracted from the oil sands projects to allow it to flow through pipelines.
• Saskatchewan has 14 crude oil rail loading facilities with a total capacity of 461 Mb/d.^Footnote 16

Natural Gas

• TC Energy's Canadian Mainline starts at the Alberta/Saskatchewan border and runs to Ontario and a portion of Quebec. The Mainline transports western Canadian gas to markets in the Prairies, central Canada, and the U.S. (Figure 5).
• The Foothills SK pipeline system is connected to the Nova Gas Transmission Ltd. system in Alberta. Foothills SK exports natural gas through the Monchy export point to markets in the U.S. Midwest.
• The Alliance Pipeline originates in northeastern B.C., crosses Alberta and Saskatchewan, and enters the U.S. at Elmore, Saskatchewan. Alliance transports liquids-rich natural gas from B.C. and Alberta and delivers it to the Aux Sable gas processing and fractionation facility near Chicago, Illinois.
• SaskEnergy’s 71,000-kilometre (km) distribution system transports natural gas to 93% of communities across Saskatchewan and over 400,000 residential, farm, industrial, and commercial customers. SaskEnergy also owns TransGas, Saskatchewan’s only gas transmission company who operate nearly 15,000 km of gas transmission lines. SaskEnergy is a provincial Crown corporation.

Liquefied Natural Gas (LNG)

• There are no existing or proposed LNG production facilities in Saskatchewan. However, LNG can be trucked into Saskatchewan from other parts of Canada and the U.S. to temporarily serve local and industrial needs.^Footnote 17

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Energy Use

Total Energy Consumption

• End-use demand in Saskatchewan was 650 petajoules (PJ) in 2020. The largest sector for energy demand was industrial at 60% of total demand, followed by transportation at 19%, commercial at 13%, and residential at 8% (Figure 6). Saskatchewan’s total end-use energy demand was the fifth largest in Canada, and the second largest on a per capita basis.
• Natural gas was the main energy type consumed in Saskatchewan, accounting for 303 PJ, or 47% of total end-use demand. RPPs and electricity accounted for 253 PJ (39%) and 83 PJ (13%), respectively (Figure 7).

Refined Petroleum Products (RPPs)

• Saskatchewan’s motor gasoline demand in 2022 was 1,878 litres per capita, 81% above the national average of 1,035 litres per capita.
• Saskatchewan’s diesel demand in 2022 was 2,829 litres per capita, 266% above the national average of 772 litres per capita.
• While Saskatchewan produces enough gasoline to meet its needs, the province also imports gasoline and other RPPs from Alberta because of logistics and business arrangements. Gasoline and other RPPs produced in Saskatchewan are also exported to neighbouring provinces.

Natural Gas

• Saskatchewan consumed an average of 590 MMcf/d of natural gas in 2023. This was 5% of Canada’s total natural gas demand.
• Saskatchewan’s largest consuming sector for natural gas was the industrial sector, which consumed 432 MMcf/d in 2023. The residential and commercial sectors consumed 84 MMcf/d and 75 MMcf/d, respectively.

Electricity

• In 2020, annual electricity consumption per capita in Saskatchewan was 19.5 megawatt-hours (MWh). Saskatchewan ranked third in Canada for per capita electricity consumption and consumed 34% more than the national average.
• Saskatchewan’s largest consuming sector for electricity in 2020 was industrial at 12.2 TWh. The commercial and residential sectors consumed 7.1 TWh and 3.7 TWh, respectively.

GHG Emissions

• Saskatchewan’s GHG emissions in 2022 were 75.9 megatonnes of carbon dioxide equivalent (MT CO₂e). ^Footnote 18 Saskatchewan’s emissions have increased 55% since 1990 and declined 6% since 2005.
• Saskatchewan’s emissions per capita are the second highest in Canada at 64.4 tonnes of CO₂e. This is 254% above the national average of 18.2 tonnes per capita.
• The largest emitting sectors in Saskatchewan are oil and gas production at 36% of emissions, agriculture at 21%, and electricity generation at 18% (Figure 8).
• Saskatchewan’s GHG emissions from the oil and gas sector in 2022 were 27.0 MT CO₂e. Of this total, 25.5 MT were attributable to production, processing, and transmission and 1.5 MT were attributable to petroleum refining and natural gas distribution.
• Saskatchewan’s electricity sector produces the second highest amount of GHG emissions in Canada after Alberta, primarily because of its reliance on fossil fuel-based generation. In 2022, Saskatchewan’s power sector emitted 13.3 MT CO₂e emissions, or 28% of total Canadian GHG emissions from power generation.
• In 2014, 120 MW of coal-fired capacity at the Boundary Dam power station was retrofitted with carbon capture and storage technology that is capable of capturing and storing up to 1.0 MT CO₂e per year of emissions that would have otherwise been released. As of 2023, over 5.8 MT CO₂e have been captured since start up.^Footnote 19
• The greenhouse gas intensity of Saskatchewan’s electricity grid was 630 grams of CO₂e per kilowatt-hour (g CO₂e/kWh) electricity generated in 2022. This is a 20% reduction from the province’s 2005 level of 790 g CO₂e/kWh. The national average in 2022 was 100 g CO₂e/kWh (Figure 9).