Oilpatch History

This month in history—October

There are two methods of coping with a shortage - taking steps to curtail demand, and taking steps to increase production.
TABER-PROVINCE No. 17-18B, fourth joint venture of the DOMINION OIL COMPANY and NASSAU EXPLORATION LTD, definitely established itself this week as the best well yet completed on the Plains of Alberta, and the largest producer yet completed in the Province outside of Turner Valley.
Canada's Atlantic Outpost Provinces - Nova Scotia and Prince Edward Island have become the scene of a gradually intensifying oil and gas search, second only in this nation to the big scale search now underway in Alberta. Maritime Province development was surveyed this week by the "Oil Bulletin". The survey showed at least nine major and independent groups participating in development, with prospects of others joining in. Upwards of 4 ½ million acres of Provincial oil and gas rights have been taken up under lease or permit...
The City of MEDICINE HAT has completed its first 1946 well in the Medicine Hat Gas Area, with unofficial figures on flow tests showing an Open Flow Potential of 4,120,000 on ft per day with a closed Top Hole Pressure of 527 pounds. The well is MEDICINE HAT No. 72, lsd 6 7-13-4w4th, a one mile step-out east from previously proven limits. Depth of the well has not yet been reported but is believed to be slightly over 1,100 ft.
The City of MEDICINE HAT, principal owner and operator of one of the great Natural Gas Reserves in Alberta, has been assured of long-term continuity of gas supply for its growing industrial, commercial and domestic needs by an agreement reached with the Provincial Government details of which were announced today. Under the agreement, the City obtains for a 21 year period - renewable at end of that time - exclusive rights on 43,724 acres of Crown Gas rights in and. around the City, taking in the area already proven as a Natural Gas Reserve and now being produced, and an extensive area extending east and north from the current proven limits.
"What do you think allowable production rates should be for Leduc Oilwells?" The P. & N. G. Conservation Board has, in effect, posed that question to operators by calling a public hearing by the Board for Wednesday) October 20th, at the Calgary Court House) at 10 a.m.
The ROYAL DUTCH SHELL Group of oil companies (one of the world's two largest groups) intends to end two years of what might be termed 'sideline sitting' in Alberta, and get back into the oil game in this province with the vigor that characterized Shell's Alberta operations from 1941 to 1946.
CONTINENTAL OIL COMPANY OF CANADA LIMITED, independent producing firm headquartered at Calgary, has signed financing contracts with a New York investment banker through which it hopes to realize $1,200,000 with which to carry out an aggressive oil development and exploration program in Alberta.
The TRANS MOUNTAIN OIL PIPELINE terminal at BURNABY, B. C., was officially opened today, climaxing a 1-½ year long $93,000,000 construction program. The official opening was preceded on Wednesday by a tour, of the, pipeline, route, between, Vancouver and Kamloops by a large group of press and industry representatives. The group travelled by special train as guests of the pipeline company.
By: C. O. NICKLE, M.P.
On the occasion of the formal opening of the WESTCOAST TRANSMISSION PIPELINE in the town of FORT ST. JOHN in northeastern British Columbia on October 7th, 1957, FRANK M. McMAHON, company president reported a few pertinent facts regarding the pipeline's history and construction. The Daily Oil Bulletin is proud to have on its first page of today's issue maps and charts showing pipeline route, source of gas supplies and facts on Westcoast Pipeline, which is the first 'big inch' gas pipeline completed in Canada and will make possible the first important interchange of natural gas between Canada and the United States. We are also proud to add our congratulations to the persons that have made today's official ceremonies possible through their initiative and long term planning. Today's ceremonies at the northern extremity of the pipeline will be followedup by formal ceremonies in Vancouver on Wednesday, October 9th.
The Borden Royal Commission on Energy has accepted the considered judgement of the experts of Western Canada's oil & gas industry that the nation's natural gas reserves still to be discovered are many times greater than dime proved today, and that the rate at which the Undiscovered will be transformed into the Proved hinges on the degree of incentive through markets that may be provided.
ALASKA-YUKON REFINERS & DISTRIBUTORS LTD., Edmonton based Canadian Independent company, will construct a 3,000 barrel per day oil treating and separation plant at Haines junction In the Yukon Territories at was announced today by the Hon. Alvin Hamilton, Minister of Northern Affairs and Natural Resources. The proposed plant that will cost about $1 million will be built by Fluor Corporation of Canada. This important new industry for Canada's North represents another forward stop in the territorial development program. Capacity of the plant will be 3,000 barrels per day feed stock and products produced will include several graded of asphalt, as well as stove, diesel and bunker fuels for distribution in the Yukon and Alaska areas.
TIDEWATER OIL COMPANY OPERATOR, has received a six mouth extension period for the purpose of dually completing a well in the QUEENSDALE field of southeast Saskatchewan, This six month extension, granted by the Minister of Mineral Resources, is to become effective on October 29th, 1958. The order was made on April 27th, 1957, granting permission to Tidewater Oil Co. to dually complete the TIDEWATER DALESBORO CROWN NO. 1626 well, located on 1sd 162662w2, for the purpose of producing oil from the Alida Beds Pool and injecting salt water into the Jurassic Sand through the same column of casing in the Queensdale field.
In its Interim Report, the Borden Royal Commission on Energy recommends that (1) the Pipe Lines Act, R.S.C., 1952 Chapter 211, be amended to provide as follows: -
A total of 836,500 common Shares including 552,500 shares in PACIFIC GAS TRANSMISSION COMPANY and 284,000 shares in ALBERTA NATURAL GAS COMPANY was distributed to the Canadian public this week by investment houses across the nation. The supply fell far short of demand, it is understood, and only limited numbers of shares were allocated to the individual thousands of Canadians who submitted applications to their brokers. One result: an immediate secondary market at price levels 40% to 50% above the initial prices.
As had been expected, ALBERTAS OIL & GAS CONSERVATION BOARD has recommended the deferment of the applications by CITIES SERVICE ATHABASCA, INC, and SHELL CANADA LIMITED which requested permission to commercially produce a total of nearly 200,000 barrels of synthetic crude oil per day from the province's Athabasca oil Sands. The two separate applications had been aired at public hearings before the Board earlier this year but the findings of the Board were not released until late Friday afternoon. The Board's report was made to the Lieutenant Governor in Council.
My role in today's program is to express appreciation of Great Canadian's officers and directors, and my personal thanks, to all who have contributed to the design, construction and successful operation of our Athabasca facilities, I regret that time will permit me to name only a few of the man who contributed immeasurably to this project. At, the outset, I want to pay tribute to the group of men who were the real moving force in Great Canadian during the early days of is existence particularly to Alex Barron, Frank O'Sullivan, Don Treadgold, Robin Law, Don Wilkins and Tom Clarke. Their vision, initiative and dedication to the job of developing Athabasca oil has contributed substantially to what you see today.
We are gathered here for a ceremony which marks a great step forward in the development of the oil industry. You who are here today honor us by your presence. It is a very real privilege for me to join in welcoming you. It was just 19 years ago that the Sun Oil Company first became interested in the Athabasca Tar Sands. At that time several of our scientists 'inspected the area and recommended to the Company that it acquire a minable block. And so in July of 1955 Sun purchased from Abasand Oils Limited a 3/4th interest in this 4,000-acre lease.
The Hon. Ernest C. Manning, Premier of the Province of Alberta, in his keynote address marking the official opening of the Great Canadian Oil Sands Limited Athabasca Project termed Saturday, September 30th, 1967, an Historic Day for the province of Alberta as it marked the tapping of a vast oil supply that has lain in the silent depths at Fort McMurray for ages. He added it was also a Red Letter for all of Canada, all of North America and was a most fitting project for Canada's Centennial Year. The huge project was made possible by responsible free enterprise. The placing on stream of the synthetic crude oil recovery project was the climax of a sequence of events that began millions of years ago. And, in the eons of time that have elapsed the last insignificant little period began with the invention of the internal combustion engine.
Premier E. C. Manning at a press conference conducted at the Great Canadian Oil Sands, Ft. McMurray opening, revealed that a new oil sand development policy 'is now in final stages analysis and should be announced in two or three weeks. It was pointed out that the present policy of limiting oil sands production to a percentage of conventional crude had ceased to serve a practical purpose. In the future it is expected that sands and conventional production will share the market. In answer to one question the Premier noted that the government was definitely in favor of different methods, indicating that the future may hold approval of institution production methods allowing more accurate comparison of recovery and commercial development. Mr. Manning also stated that the Japanese interests that are reportedly very interested in Oil sands development have not made a formal application to the Government for any operation. It was added that the Government would be prepared to approve an application without hesitation as the Japanese market presented an outlet beyond our conventional oil market. Apparently the Japanese have been discussing Athabasca oil sands development with two or three separate permit holders in the region.
"On September 14th I stated in a public address that the Alberta Government considered the Federal Government's export tax on Alberta crude oil as clearly discriminatory action by the Federal Government against a particular province. Under the terms of Confederation, the provinces formed the union on the basis that the natural resources would be the exclusive jurisdiction of the provinces, and hence, able to manage their own natural resources. The imposition by the Federal Government of an oil export tax upon a province's natural resources is, in principle, contrary in our view to the spirit and intent of the essential terms of Confederation.
The annual meeting on PRECAMBRIAN GEOLOGICAL PROGRAMS IN SASKATCHEWAN, sponsored by the DEPARTMENT OF MINERAL RESOURCES, will be held in Regina on Thursday, November 8, 1973 from 9:00 a.m. to 5:00 p.m. The meeting will be held in the Oak Room of the Hotel Saskatchewan.
Hearings into the SHELL CANADA LIMITED proposal for Athabasca Tar Sands extraction and marketing operations were adjourned by the Energy Resources Conservation Board yesterday and will be reconvened on November 1st, 1973. The hearing commenced on October 9th and were in their second day when a presentation of R.W Johns, Mining and Geological consultants was accepted by the Board as being pertinent to the hearing. Mr. Johns was originally registered as an intervenor but only a portion of his comparatively comprehensive proposals were filed prior to the start of hearings. His evidence was admitted and thus the Board adjourned the hearings to give all interested parties time to study the subject matter.
The following REQUIEM was received earlier this week by the Daily Oil Bulletin. In as much as the comments were received with a covering letter and were signed by the writer, the editor of the Bulletin feels that they are certainly worthy of presentation in this publication. The professional man that recorded his feelings in the said manner is well known to the Bulletin staff but we feel that naming the individual would serve no real purpose in this regard and thus print the same over the pseudonym - "OIL FINDER'.
CONUCO LIMITED, has recently confirmed that an exploratory drilling venture in the DAPP region of Central Alberta, has encountered gas success in an undisclosed horizon. Very limited detail is available at this time, as operator is planning to follow-up the strike with additional drilling in the area. The well was drilled as CONUCO HOME DAPP 10-8-62-25 (w4), on rights acquired by the operator under farmous agreement with HOME OIL COMPANY LIMITED. Details of the exploration agreement have not been disclosed at this time.
W.S. MCGREGOR, President of NUMAC OIL AND GAS LTD., today announced that his company will become a participant in CANADIAN ARCTIC GAS STUDY LIMITED as of OCTOBER 15th, 1973. Numac, an Edmonton based Canadian Independent oil company, lays claim to being the first truly Canadian Independent oil and gas company to join the study group. We note that Pembina Pipe Line Ltd. is a member and although its main interest have been in pipeline operations it is also classed as a Canadian independent oil firm.
HUSKY OIL LTD. of Calgary will go it alone in the largest single investment program in the company's history. Spurning for the time being farming offers involving its 1. 6 million acres of Lloydminister heavy oil properties, HUSKY will spend $450 million over the next five years in drilling, field development, primary and secondary recovery, tertiary research and the engineering studies on a 50,000 B/D upgrading plant to be built in Saskatchewan. The company has also rejoined the PACIFIC PETROLEUMS LTD. group, which will apply Nov. 1 for a provincial development permit to build an upgrading facility on heavy oil leases in Alberta.
If the Canadian gas industry can meet its marketing challenge it could easily become the number one source of energy.
DUNCAN ELLISON, Director, Dangerous Goods Directorate, Transport Canada, will answer questions on the transportation of hazardous materials 'Thursday, October 26, at 11 a.m. Room 206 International Hotel, Calgary.
C.W. DANIEL, president SHELL CANADA "new taxes on oil and gas revenues the excise tax on oil and gas production and the elimination of depletion allowances in currently producing areas of western Canada will benefit the federal government while stripping revenues from the industry and the producing provinces. These measures will reduce cash flow, the industry's principal source of funds for exploration and development. In these circumstances we will have no alternative but to re-evaluate our investment program.
Reactions immediately after the budget ranged from fury, to a feeling of being misunderstood and went on to include the odd smug comment that companies which would qualify as Canadian owned would probably survive pretty well under its provisions.
"If we can believe what they tell us, this budget looks like an incentive for the drilling industry, providing the companies can qualify for all the tax incentives and grants," said' RICHARD OSLER, junior Oil Analyst with PEMBERTON SECURITIES in Calgary.
The real loser in Tuesday 's budget appears to be SUNCOR INC. While its immediate neighbor, Syncrude, has not been treated in the same way. Suncor has been allotted the Canadian price of $16.75 per barrel for its current production, not the world price of $38 /bbl.
While industry sifts through the fine print of the Federal Government 's budget and announced energy policy, todays Bulletin will highlight the major points pertaining to the resource industry together with preliminary reaction from industry spokesmen. The Bulletin will provide a more in depth analysis, as it becomes available.
EDMONTON ON (C P) A Alberta Premier PETER LOUGHEED gave notice Thursday night that Ottawa may be able to put a price on oil, but Alberta can decide how fast to pump it out of the ground,
It is Alsands view that oil self-sufficiency in Canada is being placed in greater jeopardy because of the escalating conflict between the federal and Alberta governments. Since oil sands development is the surest means of guaranteeing a continued crude supply, we strongly urge that these projects be divorced from the current pricing dispute and be allowed to proceed, according to D. W. MENZEL, chairman of the ALSANDS PROJECT GROUP.
WILFORD, N.S. (CP) -- Nova Scotia is willing to set aside its claims to ownership of offshore resources to avoid a court battle, Premier, JOHN BUCHANAN said Thursday.
GENEVA (AP) -- The ORGANIZATION of PETROLEUM EXPORTING COUNTRIES (OPEC) today formally adopted a plan to cut production by nearly nine per cent to prop up oil prices. Saudi Arabia will shoulder nearly half the temporary reduction.
By Debbie Thomas
by Kim Coghill
by Dale Lunan
Canadian petrochemical producers say the country 's new free trade deal with the United States gives them exactly what they want improved access to large U.S. markets and a protection mechanism for resolving disputes.
Free and open energy trade is an "essential" aspect of Saturday's (Oct. 3) historic free trade deal since it will enhance energy security and increase the competitiveness of both countries, according to a summary of the agreement issued by the United States trade representative's office.
Canadian petrochemical producers say the country's new free trade deal with the United States gives them exactly what they want, improved access to large U.S. markets and a protection mechanism for resolving disputes.
More than half a dozen large core gas users seeking lower priced supplies had their hopes dashed by Alberta's PUBLIC UTILITIES BOARD Friday after asking for changes in contracts with CANADIAN WESTERN NATURAL GAS LIMITED and NORTHWESTERN UTILITIES LIMITED.
And it’s equally clear that the energy ministry, above all others, will be counted on to generate much of the momentum towards renewed prosperity. “Cooperation and coordination among ministries is essential as we focus on achieving our goals, as is getting the highest value from the resources provided to your ministry,” Stelmach continues in his letter to Liepert. “Your role will be key in supporting these efforts.”