Two years ago, after finishing his engineering physics degree at the University of Saskatchewan, Tyson Pederson was looking for work experience with a well-known company that would pay well.
"Only Alberta offered this," says the 26-year old Pederson, who was born and raised in Saskatchewan.
He moved to Calgary in 2005 and started work with a major international oil company. Just over a year later, however, Pederson decided to return home, where he found a satisfactory job in Saskatchewan's now-thriving uranium mining industry.
Pederson is one of the many Saskatchewan residents who have been lured westward by their oil-rich neighbour. According to Statistics Canada, Saskatchewan's net migration loss to Alberta between 2001 and 2006 averaged more than 10,000 people a year.
These figures alarmed provincial government officials, and sent Premier Lorne Calvert to Alberta to pitch some advertising for Saskatchewan. Now, for the first time in a decade, this population trend is reversing.
Saskachewaners are moving back home, where the cost of living is lower and the economy is beginning to look very promising.
"Record high prices in oil, uranium, and potash are driving the industry," says Debbie Young, Saskatchewan Industry and Resources spokeswoman.
With 24.84 million cubic metres in crude oil and 9.49 billion cubic metres in natural gas production, the province broke its old production records last year. According to government forecasts, this year the oil and gas industry will provide over $1 billion in revenue. After Alberta, Saskatchewan is Canada's largest oil producer.
The mining industry in Saskatchewan, the province's third-largest industry after oil and gas and agriculture, generated an estimated $3 billion in minerals sales last year. Saskatchewan has the world's biggest potash industry, and accounts for 35 per cent of the world's trade in potash. Potash sales generate an annual $2.2 billion. As well, the rising demand for nuclear energy worldwide has given a huge boost to the province's uranium industry, which is the largest in the world.
But the booming economy is bringing its own set of problems, and Saskatchewan is beginning to experience the same issues Alberta has been struggling with in recent years: a shortage of labour and soaring housing prices.
Alun Richards, a spokesperson with Areva, a uranium exploration and mining company, says that although the demand for uranium is pushing growth to a level not seen in a long time, the growth is stunted in some respects by the labour shortage.
"Right across the province… we are having trouble finding the people we need," says Richards. "We have to compete with Alberta to get people."
Young says the labour shortage is part of an ongoing problem throughout North America—there aren't enough people to step into the shoes of the now retiring baby boomers. In an effort to lure more workers, the province has held a few campaigns in Alberta, which seems to be paying off.
"We're told by a number of the moving companies that there is a real flow of people from Alberta to Saskatchewan," says Young.
Young says they want to attract professionals as well as ex-residents. But the province is also hoping to draw from the younger home-grown generation.
"I think we are lucky here because we have a really younger population; especially in the north there is the young aboriginal population that could actually be very beneficial to our economy in the upcoming years."
While the province has had a booming housing market of its own, primarily around Regina and Saskatoon, Young says the prices are not nearly as high as they are in Alberta. The average cost of a house now hovers around $200,000, up just 10 to 20 per cent from last year.
In addition to the unprecedented growth in the oil and gas, potash and uranium sectors, the mineral-rich province is set to experience a rise in new markets.
More than 30 companies have been exploring and drilling for diamonds in the province which is home to the largest diamond-bearing kimberlite field in the world. According to the Saskatchewan Mining Association, diamond explorations have now surpassed those of uranium, and account for half the expenditures.
The province could also become North America's only producer of Rare Earth Elements (REE), which have a market in high-tech electronic applications. The North American market consumes $1 billion worth of REE annually. Currently, this market is being wholly supplied by the Chinese.
"I understand there's a lot of demand for rare earth metals, and China is the only producer," says Young. "But apparently China is talking about cutting off their world supply and so that's why there might be an opportunity to pursue those kinds of initiatives."
According to the Great Western Minerals Group, just one of their sites could supply 10% of North America's REE consumption for "many years."
Young says forecasts show that Saskatchewan will continue to have a growing economy, mostly thanks to the booming mining and oil and gas industry.
"I think uranium and potash and likely the strong oil and gas sector are still going to support our economic record for the next couple of years," says Young.
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