Oil and gas are among the hottest topics on the hit parade these days.
In the weeks since Russia’s invasion of Ukraine, the price of oil has been moving and generally in an upward direction. $100 a barrel product no longer sparks headlines.
We’re seeing the impact here in investment. Six times a year the Saskatchewan government offers up or auctions off drilling rights in selected parts of the province and companies bid for them.
The first of this fiscal year was enough, though, to generate some headlines. In that one auction the government took in roughly $19 million — more money than in six in all of the last fiscal year.
The hottest spot was in the southeast, near Estevan, which attracted the bulk of the attention as oil companies once signal their willingness to reinvest in drilling.
For the past year or so, the fight for pipeline capacity and clear anti-industry signals from Ottawa discouraged new activity but strong prices seem to have been enough to reverse those concerns.
