Severe flooding in southern Saskatchewan is causing headaches for the province's oil and gas industry.

Saskatchewan Energy Minister Bill Boyd says companies can't drill when their leases are covered in nearly two metres of water.

He says at least 20,000 to 30,000 barrels of daily production have been shut in because of the one-in-500-year flooding event.

Boyd says it's tough to tell what the exact economic impact could be, but he says it could be hundreds of millions of dollars.

His ministry aims to speed up approvals for companies to drill on properties that aren't under water.

Saskatchewan's agriculture sector has also taken a hit, with as many as two million hectares going unseeded.