Saskatchewan Sector Profile: Mining, Quarrying, and Oil and Gas

Highlights

  • The sector employed 18,800 people in Saskatchewan in 2021. Of these, most worked in mining (37%) and support activities (36%) while a smaller proportion were employed in the oil and gas subsector (27%).
  • While the sector represents just over 3% of total employment in Saskatchewan, it contributes 22% of the province's GDP.
  • Growing global demand and higher prices are having a positive effect on investment and employment in the sector.
  • In Saskatchewan, approximately 3,100 people were employed as Oil and gas well drillers, servicers, testers and related workers in 2021, earning a median wage of $35.00 per hour. The employment outlook for this occupation will be good in Saskatchewan for the 2021-2023 period.

Provincial Overview

In addition to mining, quarrying, and oil and gas extraction, this sector includes support activities such as contract drilling, exploration, and mine maintenance. The sector employed 18,800 people in Saskatchewan in 2021. Of these, 27% were employed in the oil and gas subsector, while 37% worked in mining, and 36% in support activities.

Chart showing GDP percentage share in 2021

Source: Statistics Canada, Table 36-10-0400-01 (2021)

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22% of the province's total GDP comes from this sector

While the sector represents just over 3% of total employment in Saskatchewan, it contributes 22% of the province's GDP. It has a large share of full-time employment, with just 3% part-time employment.

Most of the workforce (76%) is between ages 25 and 54, and a smaller proportion (19%) is 55 or older. Just over 5% of those employed are between ages 15 to 24.

Chart showing employment distribution by age in 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Age Distribution (2021)

Age Group % of Sector Employment
15-24 years 5%
25-54 years 76%
55+ years 19%

Oil, potash, and uranium are the largest mining industries in the province. By volume, Saskatchewan is the second-largest producer of oil and gas in Canada. In addition to oil reserves of almost nearly 1.2 billion barrels, it has refinery capacity and a network of pipelines for transport. Production spans four economic regions, with wells near Estevan, Kindersley, Lloydminister, and Swift Current. [1]

Saskatchewan is the largest producer of potash globally, accounting for about 30% of all production and nearly half of the world's known reserves. [2] There are ten active mines in the province operated by three companies, and the industry continues to grow. [3] In summer 2021, BHP announced it would be investing $7.5 billion to complete construction on the Jansen potash mine east of Saskatoon, which is expected to be operational in 2027. The project will be the single largest economic investment in the province's history. [4]

Chart showing employment distribution by gender in 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Gender Distribution (2021)

Gender % of Sector Employment
Female 10%
Male 90%

Northern Saskatchewan is home to the world's highest grade uranium deposits and the source of almost a quarter of the global supply used for electrical generation. [5] Uranium mines are an important economic driver in northern Sasatchewan and a significant employer of Indigenous workers. Cameco, which operates mines at Cigar Lake and McArthur River/Key Lake, estimates that over half of its northern workforce lives within the region. [6]

Saskatchewan is also an emerging producer of helium, lithium, copper, zinc and rare earths. Currently, the province produces just 1% of the world's helium, but has significant reserves. [7] There are nine active helium wells in the province and 24 in the drilling process, most of them concentrated in southwestern Saskatchewan. [8] There was record-breaking helium exploration activity in 2021 as the provincial government released a plan to increase output to 10% of the global supply by 2030. Saskatchewan now boasts Canada's largest helium production facility, which opened in Battle Creek last spring. [9] Some oil and gas investors are changing their focus to helium as the resource gains momentum in the province. [10]

Sector Trends

Employment in the sector was impacted by the COVID-19 pandemic. There were 22,200 people working in 2019 and 3,000 fewer in 2020, a loss of 13.5%. In 2021, employment fell by a further 400 (-2.0%). The Cigar Lake uranium mine, for example, shut down for several months in 2020 and 2021 in response to COVID-19 outbreaks. [11]

Taking a longer view, employment in mining, quarrying, and oil and gas was declining even prior to the pandemic, dropping jobs every year since 2014. In 2014, 27,300 were employed in the sector compared with 18,800 in 2021 – a 31% decrease.

Line graph showing sector employment from 2011 to 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Mining, Quarrying, & Oil and Gas Employment

Year Employment
2011 26,800
2012 26,300
2013 24,700
2014 27,300
2015 26,100
2016 24,300
2017 23,500
2018 23,000
2019 22,200
2020 19,200
2021 18,800

Note: Figures shown are employment estimates

The employment numbers tell a different story in each subsector. In oil and gas, employment reached 4,700 in 2015 before falling by 19% the following year, and by a further 8% in 2017. It rallied again to 4,100 workers in 2018 before dropping to 3,400 in 2019 (-17%), then inching up in 2020 and recovering to 5,100 in 2021. The oil and gas subsector across Canada has been in a downturn in recent years, with capital expenditures in the subsector declining since 2014. [12] Along with the onset of the pandemic, the spring of 2020 marked rock-bottom oil prices. This had an impact on jobs in Saskatchewan, causing the Province to respond with a number of relief measures. [13] In May 2020, the Province launched the Accelerated Site Closure Program to fund the cleanup of inactive wells as a means of maintaining work for oil and gas companies. The third and final phase began in December 2021 with $55 million in funding, and at that point the program had employed over 575 Saskatchewan-based companies in over 5,500 reclamation and remediation projects. [14]

Turning to longer term trends, employment in the mining subsector peaked in 2014 at 12,400 and has declined each year since then, falling 43.5% from 2014 to 2021. Mining employment is strongly influenced by commodity prices, such as the weak uranium market that led to Cameco's decision to suspend production at its McArthur River/Key Lake operations. The 2018 closure meant the loss of 550 jobs in the province's North, but the company announced plans to restart production in 2022. [15]

Line graph showing subsector employment from 2011 to 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Subsector Employment

Year Mining and
Quarrying		 Support Activities for Mining
and Oil and Gas Extraction		 Oil and Gas
Extraction
2011 11,400 12,300 3,200
2012 10,700 11,600 4,000
2013 11,800 10,300 2,700
2014 12,400 11,700 3,200
2015 12,200 9,200 4,700
2016 12,400 8,100 3,800
2017 12,200 7,900 3,500
2018 10,400 8,500 4,100
2019 9,800 9,100 3,400
2020 8,400 7,000 3,800
2021 7,000 6,700 5,100

Note: Figures shown are employment estimates

Increasing the share of Indigenous workers in sector is a common goal for the provincial government, First Nations, and industry stakeholders. For example,the Government of Saskatchewan incentivizes companies who are part of the Accelerated Site Closure program to work with First Nations and Métis contractors, offering additional funding when certain conditions are met. [16] The Province also recently granted $300,000 to the Saskatchewan First Nations Natural Resource Centre of Excellence for two research projects aimed at growing Indigenous participation in the province's natural resource sector, including in critical minerals. [17] Finally, four Saskatchewan First Nations recently partnered with potash producer Mosaic and the International Minerals Innovation Institute to create a specialized course for Indigenous potash workers. The program uses gaming computers to teach digital automation skills, and includes eight weeks of in-class training at Cowessess First Nation followed by an onsite work practicum at Mosaic's K3 mine near Esterhazy. [18]

Employment Outlook

In Saskatchewan, growing global demand and higher prices are having a positive effect on investment and employment sector-wide. Oil production, though relatively low even after prices rebounded in 2021, is beginning to show signs of an upswing. [19], [20] The oil subsector is expected to have a 16% increase in investment in 2022, in addition to the Husky Midstream Saskatchewan Gathering System Expansion project that was completed last summer. [21] A total of 1495 wells are expected to be drilled in the province in 2022, representing a year-over-year increase of 198. [22] This level of activity is aligned with the provincial goal to increase oil production by 25 per cent by 2030. [23] Still, the sector faces several ongoing challenges, including shipping capacity and overall cautiousness among investors after two years of the pandemic. [24]

Mining jobs are expected to return to Saskatchewan as the demand for potash increases. The province's potash industry set new records in 2021 both in production and in value of sales. Saskatchewan's Growth Plan (2020-2030) aims to increase the annual value of potash sales to $9 billion before 2030, which the province is well on track to do. [25] Saskatoon-based Nutrien, the world's largest potash producer, is increasing production, and will hire more employees at its Saskatchewan mines as it increases output by one million tonnes to approximately 15 million tonnes this year. Nutrien expects to account for 70% of global potash production by the end of 2022. [26] East of Saskatoon, BHP is spending $7.5B to build the Jansen potash mine. The company anticipates 3,500 jobs during construction and 600 permanent jobs once the mine is operational in 2027. [27]

The Government of Saskatchewan also has a long-term plan to develop helium processing and liquefaction in the province and supply 10% of the global helium market by 2030. According to the Helium Action Plan: From Exploration to Exports, there could be 150 new helium wells and 500 permanent operating jobs, by 2030. [28]

On a positive note, Saskatchewan has maintained its rank as the best place in Canada, and is the second-best jurisdiction globally, for mining investment attractiveness, according to the 2021 Fraser Institute Annual Survey of Mining Companies. Saskatchewan has occurrences of 23 of 31 critical minerals necessary, according to Canada's critical minerals list, including potash, uranium, helium, lithium, copper and rare earth elements (REE). [29]

Occupation of Interest: Oil and Gas Well Drillers, Servicers, Testers and Related Workers

Oil and gas well drillers and well servicers is one of occupations related to the mining sector that has the most employment in Saskatchewan.

Workers in this occupation control the operation of drilling and hoisting equipment on drilling and service rigs, and direct the activities of the rig crew under supervision of the rig manager. Oil and gas well loggers, testers and related workers operate specialized mechanical or electronic equipment, tools or instruments to provide services in conjunction with well drilling, completion or servicing. Workers in this unit group are employed by drilling and well service contractors, petroleum producing companies and well logging or testing companies.

Bar graph showing occupational employment from 2011 to 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Occupational Employment

Year Employment
2011 3,100
2012 2,800
2013 2,300
2014 3,200
2015 2,500
2016 1,800
2017 2,700
2018 3,600
2019 3,000
2020 2,500
2021 3,100

Note: Figures shown are employment estimates

Employment in this occupation has fluctuated over the last decade, in line with trends in the oil subsector. In Saskatchewan, approximately 3,100 people were employed in this occupation in 2021, earning a median wage of $35.00 per hour.

The employment outlook will be good for Oil and gas well drillers, servicers, testers and related workers in Saskatchewan for the 2021-2023 period. Employment growth, retirements, and a moderate number of unemployed workers with recent experience in this occupation contribute to this outlook.

For more information on this occupation including wages, job postings, and breakdown of outlook by region, please see the market report on jobbank.gc.ca.

Note

In preparing this document, the authors have taken care to provide clients with labour market information that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of Employment and Social Development Canada.

Prepared by: Labour Market Information (LMI) Directorate, Service Canada, Western Canada and Territories Region

For further information, please contact the LMI team

Endnotes

  1. Government of Saskatchewan. Saskatchewan's Dashboard - Oil Production. Accessed April 5, 2022. ↑

  2. Government of Saskatchewan. Minerals | Key Economic Sectors | Government of Saskatchewan. Accessed April 4, 2022. ↑

  3. Saskatchewan Mining Association. Saskatchewan Potash. Nourishing the earth. A snapshot of Saskatchewan's potash industry in 2020. Accessed April 4, 2022. ↑

  4. Government of Saskatchewan (August 17, 2021). Largest Investment In Saskatchewan's History As BHP Moves Forward On Jansen Potash Mine Project. ↑

  5. Government of Saskatchewan. Uranium Mining and the Northern Saskatchewan Environmental Quality Committee | Saskatchewan First Nations, Métis and Northern Initiatives | Government of Saskatchewan. Accessed April 5, 2022. ↑

  6. Cameco. About - Cameco Northern Saskatchewan. Accessed April 5, 2022. ↑

  7. Financial Post (January 18, 2022). Saskatchewan gets lift from record helium activity. ↑

  8. CBC News (November 15, 2021). Sask. government wants province to become world leader in helium production. ↑

  9. Global News (April 27, 2021). Largest helium facility in Canada opens in Saskatchewan. ↑

  10. Financial Post (April 1, 2021). Beyond balloons: Saskatchewan emerges as a helium hub as drilling ramps up. ↑

  11. Saskatoon StarPhoenix (April 9, 2022). Cameco restarting Cigar Lake uranium mine this month. ↑

  12. Statistics Canada (July 28, 2021). The oil and gas sector in Canada: A year after the start of the pandemic. ↑

  13. Government of Saskatchewan (April 14, 2020). Provincial Support For Saskatchewan's Oil Industry. ↑

  14. Government of Saskatchewan (December 20, 2021). $55 Million Allocated in Third and Final Phase of Inactive Well Program | News and Media | Government of Saskatchewan. ↑

  15. CTV News (February 9, 2022). Cameco to restart Sask. facilities, hiring hundreds more workers. ↑

  16. SaskToday (February 9, 2022). New Indigenous participation program announced in the oil and gas sector. ↑

  17. Government of Saskatchewan (March 28, 2022). Saskatchewan Announces $300,000 in funding for Saskatchewan First Nations Natural Resource Centre of Excellence. ↑

  18. CBC News (April 12, 2022). Demand for Indigenous potash workers leads to tailor-made training program at Cowessess. ↑

  19. Government of Saskatchewan Oil Production Dashboard. Saskatchewan's Dashboard - Oil Production. Accessed April 12, 2022. ↑

  20. CBC News (February 10, 2022). Oilpatch optimism high in Sask. amid surging prices at the pump. ↑

  21. Western Investor (August 23, 2021). Saskatchewan tax credit adds 74 kilometres of oil pipeline - Western Investor. ↑

  22. SaskToday.ca (Nov 10, 2021). PSAC forecasts 16 per cent increase in drilling activity in Canada for 2022. ↑

  23. Government of Saskatchewan. 30 Goals for 2030. ↑

  24. Swift Current Online (March 21, 2022). Numerous challenges may hinder oil and gas production in Saskatchewan. ↑

  25. Government of Saskatchewan (March 22, 2022). Potash Sector Sets New Records in Production and Sales in 2021. ↑

  26. Financial Post (March 16, 2022). Nutrien Increasing Potash Production in Response to Global Supply Uncertainty. ↑

  27. CBC News (August 17, 2022). BHP approves plan to build Jansen potash mine near Saskatoon. ↑

  28. Government of Saskatchewan (November 15, 2022). Government of Saskatchewan Launches Helium Action Plan. ↑

  29. Government of Saskatchewan (April 14, 2022). Saskatchewan Still Canada's #1 Jurisdiction For Mining Investment. ↑

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