The southeast sector continues to lead the way when it comes to drilling for oil in this province.
Statistics compiled by the Estevan-based Energy and Resources (Ministry of the Economy) office, shows the drilling pace, while no longer frantic, is still very busy with an average of 39 drilling rigs active on any given day. This means that about half of the 81 locally-based drilling rigs are busily working away daily with full crew complements.
The local office also issued no fewer than 149 drilling licences in October and another 146 in November, the largest volume of licences issued in recent history, which indicates that the first quarter of 2014 will be a busy one said Dean Pylypuk, area supervisor for the ministry's Estevan field office.
Statistics indicate that during the peak periods of the recent oilpatch boom a couple of years ago, there were as many as 110 rigs readied for activity with 55 or 60 being in the field on a daily rate.
"I would say we are finding our new normal around here," said Pylypuk, when asked to comment on the drilling and well completion rate in southeast Saskatchewan.
"Crescent Point has a very active drilling program. Take them out of the picture, and it might be something else," he said, suggesting that the drilling pace would be significantly more modest.
"There are definitely some positives to take out of the licence count. It suggests we'll have a pretty active first quarter next year."
Overall, Pylypuk said it has been a good year for the local region in terms of lifting oil out of the ground and getting it into the pipeline.
"Most of the producers seem to be getting product to market, and I believe the price differential has narrowed somewhat, which bodes well," he added.
Due to a strong local pipeline and delivery system, embodied by the Enbridge Pipelines system and some regional rail transportation loads heading to various refineries, local producers have been able to get the traditional light, sweet crude oil found in the Bakken formations to the refineries and ports that handle this grade of crude. They have done this without having to sacrifice too much on the discount side of the picture.
In the Bakken fields in neighbouring North Dakota, the wells, on average, are proving to be higher producers, but the challenge of getting their oil to refineries and ports, appears to be tougher with a much heavier reliance on rail shipments.
Throughout the past three years, the southeast sector has also been a steady leader in terms of interest in Crown land purchases with the intent to drill for oil.
