Developments in Western Canada in 1955

Abstract

Exploratory drilling for the area as a whole declined by 4.7% from the total of 1954; Manitoba was the most affected, but discoveries in Alberta, British Columbia, and the Northwest Territories opened promising new objectives. Highlight of the year was a 49.8% increase in development drilling shared by Alberta, Saskatchewan, and Manitoba; growth of the still undelineated Pembina field of Alberta by 656 wells was especially noteworthy. In all, 885 exploratory wells and 2,050 development wells were drilled. Average daily crude-oil production rose from 263,850 to 355,532 barrels and natural-gas production from 384,942 to 493,316 Mcf/d. Canada's estimated crude oil reserves increased from 2,415,945,000 barrels in 1954 to 2,756,619,000 barrels in 1955. Alberta's Sundre-Westward Ho oil field was Western Canada's most important 1955 discovery in terms of indicated reserves. The Savannah Creek gas field, discovered within the Rocky Mountains, is the first capable of commercial production along that belt. A newly discovered Devonian reef at Windfall in central Alberta yielded wet gas, and several significant discoveries were made in the basal Paleozoic Granite Wash zone of the Peace River area. In Saskatchewan and Manitoba the Mississippian subcrop belt had promising discoveries at Steelman, Kingsford, Hastings, and Maples; important extensions were made to Midale, Nottingham, and Virden producing areas. The Battrum field was discovered in the Swift Current area of Saskatchewan. A gas discovery in the Northwest Territories is the firs significant hydrocarbon find there since that of Norman Wells field in 1920. New pay zones were established in the Triassic of Alberta and British Columbia, and in the Cretaceous of Alberta; significant oil showings were reported in the Devonian Ireton shale and in questionable Cambrian strata in Alberta. Geophysical activity, surface mapping, and core-drilling showed no significant changes from 1954. Reduction of acreage under permit was marked in the Northwest Territories and Saskatchewan. A new cent net royalty system of Crown lease sales was introduced in Saskatchewan. About 600 miles of oil and gas pipeline, mainly confined to gathering systems, were built. Early construction of one major gas pipeline to serve the Pacific Northwest of the United States and southwestern British Columbia was assured, and prospects for a gas pipeline to Eastern Canada were improved. Refining capacity in Canada and the northern United States served by oil from Canada increased by approximately 100,000 barrels per day. The rapidly widening gap between potential production and available competitive markets was a matter of increasing concern as the year ended.