Rain could delay drilling for some oil companies; sector needs workers

Saskatchewan’s unsettled weather could be having an impact on the province’s oil and gas sector.

Brian Zinchuk, the editor and owner of Pipeline Online, told Gormley on Wednesday that the amount of rain the southeast area of the province has received so far could impact how much drilling can be done.

“If we get an inch and a half of rain in some places, it makes it very difficult to move rigs, and companies are often reluctant to pay for that extra cost,” Zinchuk said. “But the (oil companies) don’t like moving rigs on soft roads, so that’s going to throw a wrench into it.”

Western Saskatchewan could see an increase in oil production if the rain can hold off and keep the land dry, he added.

Speaking to Gormley at the Saskatchewan Oil and Gas Show in Weyburn, Zinchuk was asked if there will be an increase in drilling as we move into the summer months.

“Right now, we’re still in May and almost nobody drills in May. You really won’t be able to tell until July. Once you get mid-(or) late July, then you will really have an idea of what’s going on,” he explained.

Zinchuk mentioned another issue the oil and gas industry is facing this year is a lack of employees.

He says his website has seen no shortage of job postings because of the current demand.

“I spoke with someone who said they can’t find anyone (to work). They aren’t getting any applications. One-third of the ads on my website now are help-wanted ads,” said Zinchuk.

“I talked to a gentlemen today who desperately needs mechanics. Another one desperately needs swampers, truck drivers and rig hands. Almost every single servicing company I’ve spoken with needs hands.”

Zinchuk added there has been a bit of a reluctance for people to return to the industry since the 2014 crash.

He thinks there needs to be more of an emphasis on getting younger people involved in the sector.