Manitoba Announces Record Oil, Gas Figures

Feb 4, 2011 | Government News

Over $800 Million in Expenditures Will Boost Provincial Economy:  Chomiak 

The latest estimates of oil and gas industry expenditures in Manitoba for 2010 total a record-breaking $800 million and the spinoff effects will further improve the province’s economy, Innovation, Energy and Mines Minister Dave Chomiak announced today. 

The Honourable Dave Chomiak

“2010 was a record year for the industry on several fronts,” said Chomiak.  “Manitoba has experienced a doubling of wells licensed, wells drilled and metres drilled compared to 2009.  Last year, 632 wells were licensed and 516 new wells were drilled.  As well, geophysical activity has also increased to a record level, with 23 seismic-exploration programs operating last year.” 

Oil production in Manitoba has more than doubled since 2004.  In 2010, approximately 3,300 wells produced over 29,000 barrels of oil per day.  In 2004, there were 1,710 wells producing 11,020 barrels of oil per day. 

“Manitoba’s competitive nature appeals to the oil industry and we have an attractive incentive program to encourage the industry to invest further in our province,” said Chomiak.  “The work of the industry, such as exploration and development drilling, contributes to our diverse economy, which has been critical in helping Manitoba to thrive.” 

The Petroleum Services Association of Canada (PSAC) is forecasting 2011 will be even busier than 2010.  PSAC has forecast 550 new wells will be drilled in Manitoba in 2011. 

“Penn West is pleased to be a key player in Manitoba’s oil and gas industry, as well as a big part of the local and provincial economy,” said Diana Walls, government and industry relations, Penn West Exploration.  “Our Manitoba operations represent one of our most significant oil resource plays and we plan to grow our operations further in the Waskada area.  We appreciate the open and collaborative approach of the Manitoba government which creates a safe, balanced and productive operating environment for our industry and for the benefit of Manitobans.  We anticipate a steady increase in our long-term investment in Manitoba and will continue to work with the Government of Manitoba and area residents to support the province’s goals.” 

The petroleum industry in Manitoba employs a workforce of about 1,500 individuals.  These high paying, technical jobs build upon the economic stability of Manitoba, said Chomiak. 

The province’s Manitoba Drilling Incentive Program, which provides incentives to explore and develop petroleum resources in the province, was extended at the end of 2009 through to 2014. 

More information on the Manitoba Drilling Incentive Program is available at

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