Province raises alarm over economic impact of oil and gas restrictions – DiscoverMooseJaw.com

Southwest Saskatchewan is the fourth-largest oil producer in Saskatchewan, and a new report shows the province is concerned about the impact federal regulations could have on the industry.

The provincial government is using the Saskatchewan Economic Impact Assessment Tribunal report as evidence to oppose federal regulations on oil and gas and methane 75 emission limits.

“We are the only oil-producing jurisdiction in the world proposing emissions reductions,” said Bronwyn Eyre, Minister of Justice of Saskatchewan. “So instead of trying to figure out how we’re going to drive investment as a country in new kinds of sustainable manufacturing, and we’re already very, very good at that, we’re seeing endless, really destructive policies that are preventing companies from reaching their full potential.”

Canada is one of more than 150 countries that have signed the 2021 Global Methane Pledge, which aims to reduce total methane emissions worldwide by 30 per cent from 2020 levels by 2030.

“It’s a matter of weeks before we can present draft regulations to cap emissions from the oil and gas sector,” federal Environment and Climate Change Minister Steven Guilbeault said at a news conference earlier this week.

The report finds that by 2050, federal production caps and methane mandates could reduce oil production in Saskatchewan by 38-52% and cost between 12,800 and 34,000 jobs.

“It’s important to remember that the federal government cannot do this,” Eyre said. “Under the constitution, they cannot get into the nitty-gritty of provincial regulations. We have a constitutional argument that certainly results from Art. 92 that the provinces have exclusive jurisdiction over natural resources and energy production, which really violates it.”

The report concludes that two federal mandates would not reduce any global emissions and argues that production cuts in Canada could be replaced by jurisdictions with weaker environmental standards.

Eyre emphasized that between 2015 and 2023, provincially regulated methane emissions in Saskatchewan dropped by two-thirds.

The Swift Current area is second only to Lloydminster, Estevan and Kindersley in provincial oil production and produced 1,133,108 cubic meters of oil between January and June this year. This represents a decrease of 7.6% compared to the same period in 2023.