There's less than a million people in Saskatchewan and, in fact, fewer people lived there at the time of the 2006 census than at the time of the 2001 census. But I suspect that Saskatchewan's population may soon start to grow again as, just like its next door neighbour Alberta, folks from other provinces start showing up looking for work and a top-dollar paycheque. James Woods reports on the front page of today's Regina Leader-Post and on the front of the Saskatoon Star-Phoenix that the flattest of provinces has the fattest of bank accounts:
Saskatchewan's ever-fattening bank account may yet burst as extra cash appears likely to fall into the government's hands thanks to stratospheric resource prices.
But the real big money — with both its benefits and challenges for the province and its residents — may be just around the corner if oil prices continue to climb as some analysts are predicting.
With oil prices reaching $119 US a barrel on Friday, the province appears likely to reap more — perhaps a great deal more — in oil royalties than projected in the budget, with its estimated oil price of $82.36 US for the fiscal year.
The government would take in roughly $300 million more in revenue than projected if oil averaged $100 US, while an average of $110 US would mean about $475 million in additional cash.
Soaring energy prices have already meant that April's sale of Crown lands, the first of six that will be held this year, took in $265 million, more than was projected for the entire year. Expectations are running high for the next sale in June.
And the potash boom that has made Potash Corporation of Saskatchewan the most valued company on the Toronto Stock Exchange at times this week means the province could very easily end up with double the $352 million in royalties it expected in the budget.
“Certainly for this year it looks extremely good,” said Saskatchewan Party Finance Minister Rod Gantefoer in an interview Friday. “I suspect that I'm in the enviable position of probably being in the very best times, maybe in the history of this province, to be finance minister in terms of potential revenue…” [Read the full story]