Southeast Saskatchewan is the largest oil producer in Saskatchewan and a new report has the province concerned about the impact federal regulations could have on that industry.
The provincial government is using a Saskatchewan Economic Impact Assessment Tribunal report as evidence to oppose federal oil and gas emissions caps and methane 75 regulations.
"We're the only oil producing jurisdiction in the world that's proposing an emissions cap," said Saskatchewan Minister of Justice Bronwyn Eyre. "So instead of trying to figure out how we drive investment as a country into new types of sustainable production, and we're already very, very good at that, we're seeing endless really destructive policies to prevent companies from really reaching their full potential."
The report suggests that by 2050 the federal production caps and methane mandates could cut Saskatchewan's oil production by 38 to 52% and cost between 12,800 and 34,000 jobs.
Canada is one of more than 150 countries signed onto the 2021 Global Methane Pledge, which aims to slash overall methane emissions worldwide by 30 per cent below 2020 levels by 2030.
"It’s a matter of weeks before we’ll be able to present draft regulations on the cap for the emissions of the oil and gas sector," said federal Environment and Climate Change Minister Steven Guilbeault at a news conference earlier this week.
By 2050, with production caps and methane mandates in place, Saskatchewan's oil production would fall by between 38 and 52 per cent, the province would face cumulative royalty and tax revenue losses of between $4.8 and $7.1 billion, and total lost government revenues would be up to $43.3 billion, according to the independent Report.
"Keep in mind that the federal government is not able to do this," Eyre said. "Constitutionally they can't wade into the nuts and bolts of provincial regulation. We have a constitutional argument certainly under section 92 provinces have exclusive jurisdiction over natural resources and power generation, and this really does violate it."
The report concludes the two federal mandates would not reduce any global emissions and it argued production cuts in Canada could be replaced by jurisdictions with weaker environmental standards.
Eyre highlighted that between 2015 and 2023, provincially regulated methane emissions in Saskatchewan fell by two-thirds.
So far in 2024, the Estevan area produced about 3.9 million cubic metres of oil.