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Stoughton is looking for the next big thing

Back in 2008 a remarkable thing happened: Saskatchewan had more than a billion dollars in Crown land sales. Most of that was around Stoughton, and much of it was driven by Crescent Point Energy Corp.
Coderre Construction 3
W.H. Coderre & Sons Construction Ltd., also known as Coderre Construction, has been handling aggregate so long in Stoughton, they predate the oilpatch. The company has been around since 1945, and is still owned and operated by the same family. Del Coderre recalls when oil was first found north of nearby Forget. Just a few kilometres of that discovery well is their Bell Pit, seen here.

Back in 2008 a remarkable thing happened: Saskatchewan had more than a billion dollars in Crown land sales.

Most of that was around Stoughton, and much of it was driven by Crescent Point Energy Corp. Since that time, Crescent Point has grown from a junior oil producer to the largest oil producer in Saskatchewan, eclipsing even mighty Husky Energy, the powerhouse of Saskatchewan heavy oil. (That could change, however, if Husky keeps building their planned 18 sites of 10,000 bpd SAGD facilities, mostly in Saskatchewan.)

While naming conventions call it the “Viewfield Bakken,” most people would be hard-pressed to find Viewfield on a map. It’s not even a rail siding anymore. Perhaps a more appropriate name for the biggest boom to hit Saskatchewan in a long time would have been the “Stoughton Bakken,” because, really, that small community has been the heart of the play.

While Estevan, Weyburn and Carlyle have serviced much of the Bakken Boom, Stoughton has really lived it.

It’s with that in mind this month’s focus has been on Stoughton. We spoke to many of the oilfield and oilfield-related businesses in Stoughton. In reality, it’s doubtful any business in Stoughton doesn’t see some spinoff from the oilfield except perhaps the local veterinarian.

Coderre Construction has been in business for 72 years, under the same family ownership. Many a road and lease have been gravelled with their aggregate. Gary Goudy of Goudy Transport had gotten out of the oil business in the 1990s, but he couldn’t stand seeing all the oil trucks rolling past his yard without being part of the action, so he got back in.

It was the high number of trucks rolling past Stoughton that inspired the Oil Drop Shop, a quick lube service for semi trucks as well as light vehicles.

Mustang Vac has begun hiring again, regaining a bit of the ground lost during the downturn with regards to staffing.

The intersection of Highways 13 and 47, truly the crossroads of the Bakken if there ever was one, saw the construction of not one, but two new hotels: the Poplar Tree Inn and Western Star Inn & Suites. They’ve seen the boom, and they’ve worked hard to keep business during the bust.

Preferred Energy, just south of Stoughton, has spent several years building facilities in the region. It’s no coincidence they chose to be in the centre of the action, at Stoughton.

DFA Transport begat DFA Tire, a sister company that provides service not only to DFA’s fleet of 50 units, but to third parties as well. Despite a tough spring break up last year, DFA Transport has done something remarkable – it’s roughly tripled in size compared to a few years ago, during a period when many companies have cut their staffs by half.

So Stoughton has lived through the boom, and now the bust, and some are looking forward to what might be coming next

This past December, Dominion Energy Processing Group Inc. announced its intention to build a new 40,000 bpd oil refinery just a few kilometres southwest of Stoughton. Dominion CEO Keith Stemler has spent a lot of time in recent months in southeast Saskatchewan advancing the project. If you’re wondering why there’s no story about it this month, we checked in with Stemler on April 12, and he said they don’t have any major project announcements at this time.

Last month we reported the 2017-18 provincial budget had included a $75 million Oil Processing Investment Incentive which would be applicable to both the Stoughton proposal and Husky’s proposed new 30,000 bpd asphalt refinery for Lloydminster.

If the Dominion project goes ahead, Stoughton will see another boom, in construction. But more importantly it should be a sustaining piece of infrastructure for the community for decades. Refineries often see expansions. They drive production that feeds them. It’s not too far a stretch to say the Lloydminster Upgrader is a key reason why the Border City grew by 10,000 people this century.

Will Stoughton see another boom? If the refinery goes ahead, things would be looking good.