Oilpatch History

This month in history—April

Indicative of the continuing favorable outlook for the TILLEY Area some 125 miles east of Calgary, a two mile pipeline is now being laid from the recently completed NORTHWEST TILLEY No.2 well to the railway siding at Tilley, and a 500 foot loading track is to be laid at the pipeline torminus at Tilley.
On May 31st 1941, the Oil Bulletin reported: "Taxation concessions (probably on the allowances for depreciation and depletion) to encourage oil companies to engage upon exploratory drilling will be made possible through an amendment to the War Exchange Conservation Act, given final reading by the House of Commons on Friday. The amendment, according to Finance Minister Ilsley, empowers the Dominion Government to enter into agreements with oil companies to give them tax concessions to assist in the financing of prospect drill so that new wells may be opened up and the nation's oil supply maintained. Oilmen anticipated considerable benefit from the measure, but have not yet received sufficient information to exactly appraise the possible results of the amendment."
There are fifty-one areas in Western Canada, including forty-seven in Alberta, now producing crude oil and/or natural gas, or being drilled, or being surveyed, or slated to be drilled or surveyed this summer. It all adds up to the largest oilfield development program in Canada's history.
When the Dominion Oil Controller authorized a 15 cents per BBL increase in Turner Valley oil prices on April 1st, the Dominion Government commenced payment of a Subsidy on American oil imported into the Prairie Provinces in order that refiners might be able to pay the increased costs on Turner Valley crude without increasing the pries of gasoline to the consumer. Thus was extended to the Prairies the Subsidy Plan by which the Dominion has been maintaining the ceiling on refined products for some time in Eastern Canada and on the Pacific Coast.
LLOYDMINSTER, a Lower Cretaceous sand Oil Pool straddling the Alberta-Saskatchewan border, has been known as a field giving wells capable of flowing initially as rates from 5 to 40 bbls daily, and capable of yielding on pump at rates up to 60 bbls per day. The oil has the thickness of heavy maple syrup, rating 14.7 API gravity Some water is present at practically all wells. Productive depths are shallow up to 1,900 ft.
CONTINENTAL, OIL No. 1, East Side Lime completion in North TURNER VALLEY, produced 438 bbls of now oil in the 24 hours ended 8 a.m. Monday, flowing through the tubing under its own power. Gas-oil ratio is 3,010 cu ft per bbl. The well was given its final acid treatment last Thursday, flushed 38 bbls hourly on booster gas, was started under its own power at 3:30 p.m. Saturday.
IMPERIAL OIL'S SCHOEPP NO. 1, GOLDEN SPIKE Oil Discovery has lived up to the high expectations that the Oil Fraternity anticipated, when it was finally placed on production test. An hourly gauge of 500 barrels was recorded at the discovery when two open flow tests, one hour in length were run at the fabulous oilwell.
Prepared by the "Daily Oil Bulletin" from Trust Company statements, showing current and recent previous Distributions, listed under months of actual oil deliveries. Distributions are made about one month after end of month after end of month of actual delivery:
The Alberta Government believes that the proposed Alberta Pacific Coast crude oil pipe line "should follow a route determined by a competent authority as the most economic and otherwise advantageous", the Hon. E. C. Manning, Premier of the oil province, declared in a press statement today. The Premier gave a flat denial to rumors that his Government had made any commitment to any of the half dozen or more prospective pipeline builders. The statement means that Alberta which has a vital stake in the pipeline decision, to be made by the Canadian Government believes the decision should be made on the basis of economics, not politics.
Alberta's long awaited gas markets which will result from the export of natural gas crept nearer yesterday as the province's PETROLEUM AND NATURAL GAS CONSERVATION BOARD recommended that the Alberta Government permit gas export from the PEACE RIVER area of northwest Alberta. The Board report and recommendation were tabled in the legislature, yesterday, and although not binding to the Government oil operators in the province anticipated that the government would follow the guidance of its Conservation Board.
CANADIAN GULF OIL COMPANY made its first public comment relative to the Alberta Petroleum and Natural Gas Conservation Board's recommendation to the Provincial Government on gas export. A company spokesman stated that if the Board's recommendation that Alberta's natural gas surplus be exported only from the PEACE RIVER area is accepted by the Government, it will, retard or even stop a program involving an expenditure of $365,000,000 now underway in the PINCHER CREEK area, that the agricultural industry will be handicapped and that industrial as well as oil and gas development in all Alberta will be delayed.
HUSKY OIL AND REFINING LTD has turned the 'black sheep' of western Canada's oil industry into a demanded respectable flock with a very bright future for continued progress. The 'black sheep' was the heavy asphalt base crude oil and this young company has pioneered this segment of the industry with great success. Today the Lloydminster field, straddling the AlbertaSaskatchewan border, has become one of the principal black oil centres of North America.
In a letter to shareholders, M.S. BERINGER, president of THE BRITISH AMERICAN OIL COMPANY LIMITED, outlined benefits expected from the proposed acquisition of CANADIAN GULF OIL CONPANY. The president informed the B.A. shareholders that the company's directors are satisfied that the basis of the proposed transaction is an equitable one and in the best interests of the Company and its shareholders and, therefore, recommended approval of the offer. It was reported Tuesday that Canadian Gulf's parent company, GULF OIL CORPORATION, had accepted the B.A. offer.
PHILLIPS PETROLEUM COMPANY, discoverer of the KAYBOB BEAVERHILL LAKE oilfield is reported unofficially to have uncovered natural gas in the Notikewin horizon at a current test immediately outside the presently designated southwestern limits of the pool. During a thirty minute test over a seventyfoot interval, around the 4,900 foot level, natural gas flowed at the rate of 12,100,000 cubic feet per day five minutes after the valve was open. Drilling is once again underway on the hole which is scheduled as a 10,000-feet evaluation of the Beaverhill Lake formation.
Trade & Commerce Minister GORDON CHURCHILL informed the House of Commons in Ottawa this morning that, before the House closes at 6 p. m. today, he will announce when the decision on applications for export of natural gas to the United States will be made public. The National Energy Board has already reported to the government on the five export applications, and the announcement will indicate what decision the Cabinet has made in each case.
HUDSON'S BAY OIL & GAS COMPANY LIMITED has completed an exploratory test in the KAYBOB district of central west Alberta as a Viking gas discovery. The venture, drilled primarily as a Beaverhill Lake evaluation, found the lower zone unproductive and was consequently plugged back and capped as a successful gas producer. From fifteen feet of Viking sand pay, found around the 5,600-foot level, the well gave gas at rate 3, 600,000 cubic feet per day.
The team of PHILLIPS PETROLEUM COMPANY, SCURRY RAINBOW OILS LIMITED, WEST CANADIAN OIL & GAS LIMITED, and CANADA SOUTHERN PETROLEUMS LIMITED has suspended an exploratory test in the PEEJAYDOIG RIVER district of northeastern British Columbia after indicating Triassic oil success. The venture, drilled as a tight hotel due to a recent land sale conducted by the provincial government, flowed at the rate of 200 barrels of oil per day during a flow test through a restricted choke.
IMPERIAL OIL LIMITED in a new price Bulletin for Saskatchewan shows an increase of five cents per barrel for both Parkman/East Parkman and the ' Whitebear oil producing areas in the southeastern sector of the province. The new Bulletin, No. 460 which becomes effective 7:00 today, April 1st, 1960, post a price of $2.035 per barrel for the Parkman area output, and $1.965 for Whitebear producers. There are no price changes for the other twentytwo fields from which Imperial buys crude in Saskatchewan.
The Hon, E. C. MANNING, Premier of the Province of Alberta on Friday of last week, April 10th, 1964, gave formal approval to the Application of GREAT CANADIAN OIL SANDS LIMITED for a $190,000,000 project to extract 45,000 barrels of oil daily from the famed ATHABASCA OIL SANDS. As soon as the Government's final approval was officially registered SUN OIL COMPANY, who will have the major common stock equity in GREAT CANADIAN OIL SANDS, revealed that its preliminary planning and actual work carried out at plant site in the past number of weeks will assure a construction start this summer.
The action of the Alberta Government authorizing a $190,000,000 project to recover synthetic crude oil from the giant ATHABASCA OIL SANDS deposit, was described Friday, April 10,1964 by DARWIN W. FERGUSON, President of Sun Oil Company Limited, as a "validation of our confidence". He disclosed that Great Canadian Oil Sands Limited, in which Sun Oil Company Limited will have the major common stock equity, has continued its expenditures in excess of $20,000 per day on plans and preparations while the proposed project awaited final Governmental approval during the past two months, Clearing of the site commenced in the latter part of March.
JOHN W. GENDRON was elected a Director of TRANS MOUNTAIN OIL PIPELINE COMPANY and its subsidiaries at a recent meeting of the Board of Directors. Mr. Gendron fills the vacancy on the Board created by the resignation of DAVID E. DAY.
The NATIONAL ENERGY BOARD hearings into the ALBERTA AND SOUTHERN GAS COMPANY and TRANS CANADA PIPE LINES LTD. applications for increased gas export concluded on Friday, April 9th, and as was expected decision on all applications was deferred. The ten days of hearings were highlighted by the British Columbia Government and WESTCOAST TRANSMISSION COMPANY'S opposition to the Alberta and Southern Proposal. Details of the applications of the various companies were recorded in the Bulletin on March 29th, opening day of the hearings.
At the Fifth Annual Meeting of the B. C. Division of the CANADIAN PETROLEUM ASSOCIATION, which was held in the Empress Hotel, Victoria, on Friday, April 2nd, the following Directors were elected for a twoyear term:
The Government of ALBERTA, Canada's no.1 oil-gas province, outlined a "tentative Natural Resource Revenue Plan" to the Legislature on Monday afternoon, through Energy Minister William Dickie At the same time, the Government released an eighty page "Position Paper" outlining the terms of reference and basic features of the tentative plan. Following is the text of key sections of the Position Paper:
The INDEPENDENT PETROLEUM ASSOCIATION OF CANADA stated this morning that we have not as yet, been able to examine fully the position paper, but we were startled by the amount of money that the government proposes to raise in additional revenue from the petroleum industry of Alberta and would suggest that if the tentative proposal becomes a realty a negative reaction will develop, severely limiting the economic growth of the province.
The CANADIAN ASSOCIATION OF OILWELL DRILLING CONTRACTORS IS concerned that the tentative "Natural Resource Revenue Plan" announced yesterday by the Honourable W. D. Dickie will act as a disincentive to the exploration and development of oil and gas reserves in the Province of Alberta.
The CANADIAN PETROLEUM ASSOCIATION views with grave concern the potential impact on future oil exploration in Alberta of the government's Intention to introduce a mineral tax on proven oil reserves.
The Bulletin learned this morning that almost all of the gas bought by TRANS CANADA PIPELINES for subsequent sale to gas distribution firms will be subject to price established by yesterday's Arbitration Board Award. Although the gas purchase transmission company and Gulf were the parties involved directly in the Arbitration action it was agreed that the decision of this Board would trigger numerous other Trans Canada gas purchase contracts, And, in as much as Trans Canada has been fairly quickly moving toward a common time frame on its contracts the $1.15 price will apply to the large majority of its purchases as of November 1st, 1975.
Today's speech from the throne indicates that the recently elected Liberal Government is now leading a country that no longer has the phrase 'self-sufficiency' as a maxim in its energy policy. Opening the 32nd parliament, Governor General ED SCHREYER delivered a speech, which made no mention of self-sufficiency in energy or even of self-reliance. There is, however, a reference to "security of energy."
EDMONTON (CP) -- Alberta Premier PETER LOUGHEED will make " a major attempt" Wednesday to get through to Central Canada the message of just how much Alberta is ready to give up enroute to an oil pricing agreement with the federal government
by Rick Charland
By Adrienne Menzies