Oilpatch History

This month in history—March

MAJOR COMPANIES & INDEPENDENTS SPEND MILLIONS TO IMPROVE & ENLARGE PLANTS NEW CAPACITY OF REFINERIES PROCESSING ALBERTA CRUDE TO EXCEED 30,000 BBLS.
Revised regulations governing the reservation and leasing of Crown Lands and the drilling and production operations of oil and gas wells, affected by order-in-council on March 6th, were announced by the Alberta Government this weekend. Bills whose passage will make possible certain of the important changes in the Regulations this week reached their final stages in the Legislature and will become law in the immediate future. The revised regulations are designed to implement the Alberta Government's pledge to aid in the speeding up of oilfield development in the province.
Crude oil producing (under set quite) 137; Testing production 2; Gas wells (operating) 80; Drilling 30; To spud 12; Standing 8; Total: 269 wells.
Carried only 32 feet in the Madison limestone to 3,260 feet, STANDARD OF B.C.'s PRINCESS No.3 well was described officially as having completed drilling this weekend. On Saturday an electro-log was being run to provide further data on the formation just above and in the top of the lime. Production string of casing will be run during the weekend and will be perforated for tests of various oil and gas zones during the coming week. It is reported unofficially that substantial oil and gas showings were encountered in the Sunburst sand, immediately overlying the lime, and the belief is expressed that commercial production may be developed here without drilling into the Madison section from which Princess No.2 well produces. PRINCESS No. 4 well, half a mile south of No. 3, was reported being spudded in Saturday morning.
The United States government has called Turner Valley into action against the Japanese. The Valley has been called upon for the many thousands of barrels of high grade aviation gasoline and motor fuel needed for the construction, maintenance and protection of the now vital defence highway to Alaska.
Alberta's crude oil and natural gasoline production moved up to still another new all time high during the past week - about 30,806 bbls per day during the week ended 8 a.m. on March 16th, this average is more than 1,000 bbls per day in excess of the yield in the previous week (29,649 bbls), and almost 4,000 bbls per day excess of the yield in the corresponding week a year ago (26,969 bbls). Following is a summary of the most recent production production from the Conservation Board:
40% WRITE-OFF EXPLORATION & 'DRYHOLE' COSTS FAR REACHING TAX CONCESSIONS PROVIDED FOR IN NEW BUDGET TO SPEED UP CANADIAN OIL SEARCH.
The important new Tax Concessions, combined with the February 1st Order-in-Council which scrapped remaining Import Duties, the 10% War Exchange Tax and the 8%. Sales Tax on drilling and production equipment, are a major contribution by the Dominion Government to the Oil Industry in Canada.
The Canadian Oil Industry is highly appreciative of the several major Taxation Concessions which Mr. Ilsley has included in his new Budget. These concessions will be of great assistance in speeding all oilfield development during the next two years. However, it is difficult to understand why the Finance Department plans large differentials in Depletion Allowance granted to primary Investors shareholders in Oil Companies, and Investors in Oil Royalties.
Canada's Norman Wells Oilfield, the world's most northerly proven oil reserve, will end its "War Emergency" role before the end of June, perhaps even by the end of this month, according to reports from Washington, with the abandonment by the United States Army of the much debated "Canol Project."
TO BE CONTROLLED BY GAS UTILITY & EXPORT GROUPS, PRODUCERS, PROCESSORS & REPRESENTATIVES APPOINTED BY ALBERTA GOVT.
There were a total of 588,674 acres of petroleum and natural gas reservation rights issued by the ALBERTA GOVERNMENT during the week ended March 18, 1954, while, during that same week there were 115,680 acres of reservations that reached the terminated stage. Of the terminated lands it is not as yet known what portion if any was converted to lease, and what lands were dropped entirely.
NO SPECIAL PROVISION FOR CANADAIAN OIL MADE, BUT ACTUAL EXPORT LOSS TO CANADA EXPECTED TO BE ONLY A FEW THOUSAND BARRELS DAILY IN PUGET SOUND, NO LOSS IN U.S. MIDWEST. PRESIDENT EXPRESSES HOPE CURRENT CANADIAN - VENEZUELAN DISCUSSIONS WILL BRING "CO-ORDINATED APPROACH TO OIL PROBLEM"
Today's front page map highlights the BRAZEAU RIVER oil and gas producing area of central west Alberta situated approximately 110 miles northwest of the city of Calgary. and some 13.0 miles southwest of the provincial capital, The area has been the scene of a number of exploratory drilling projects, by four different operators, and is expected to continue to attract interest. As shown on the map Hudson's Bay Oil & Gas Company Limited, and 'its subsidiary Mic Mac Oils (1963) Ltd, owns varying interest in a large block of rights within the northern portion of the Brazeau River field, and to the north and east as well. Said holdings. include almost all of Townships 46, and 47, Ranges 13 and 14, and substantial amount of lands in Townships 47, and 48. Ranges 11 and 14 respectively, It should be noted that in some cases ownership of the petroleum and natural gas rights are held by Hudson's Bay in conjunction with other firms, such as Texaco Exploration, Mobil Oil, Imperial Oil, Shell Canada. and Gulf Oil, and in certain sections only specific natural gas rights are held by the firm and or its partners.
-- Mr. Speaker -- I would like to take this opportunity to make an announcement that will be of benefit to every citizen in this Province.
The foregoing statement from PREMIER of ALBERTA, PETER LOUGHEED, spells out the unique situation that has developed on the Suffield Block and gives some indication of the special considerations that the Alberta Government will initially apply. The huge block of rights centres on Twp. 18 Rge. 7w4, The area will be mapped in a subsequent issue of the Bulletin to give a full description of minerals rights and picture the gas development that surrounds the specified area.
The CANADIAN PETROLEUM ASSOCIATION today announced its estimates of reserves of oil, natural gas and sulphur in Canada as of December 31, 1972.
PETROFINA SA, the Belgian multinational oil firm, announced today it has agreed to sell its Canadian subsidiary to PETROCANADA for $1.46 billion (Canadian).
CALGARY TRANSCANADA PIPELINES has offered to pay its 650 contracted gas producers 100% of its take or pay obligations for both the 1980/81 and 1981/82 contract years for an additional $1 billion however, the company also proposes to end all take or pay obligations beyond 1982.
OTTAWA (CP) -- An energy agreement intended to keep the price of most Canadian oil below the world price might not survive much longer than another two weeks, the federal and Alberta governments indicated Monday.
DOME PETROLEUM confirmed Monday that an extension has been granted to April 4 of the agreement in principle reached between the company, the federal government and Canadian banks late last September.
LONDON (AP) -- OPEC oil ministers have agreed to reduce the organization's benchmark crude price by about 15%, to $29 U.S. a barrel from $34, the first cut since OPEC started fixing prices during the 1973 Arab oil embargo against the West.
NORP TO GO DOWN THIS SUMMER; OLD OIL PRICE WON'T INCREASE JULY 1
TORONTO GULF CANADA PRODUCTS COMPANY president R.T. BROWN categorically denied Friday news reports that the company is considering closing down its Montreal East refinery.
by Debbie Thomas
The failure of the Organization Of Petroleum Exporting Countries (OPEC) to reach an agreement on pricing strategy after nine days of talks sparked panic selling this morning on the futures market.
Federal Energy Minister MARCEL MASSE is expected to announce details of a new oil and gas incentive package tomorrow as part of the Western diversification program, a spokesman for Deputy Prime Minister DON MAZANKOWSKI confirmed this morning.