Developments in Western Canada in 1965

Abstract

Overall exploration expenditures were at an all-time high of about $405 million in Western Canada during 1965, up $70 million from 1964. As in previous years, most of the increase resulted from higher Crown land sales and, to a lesser extent, from increased wildcat drilling which reached a record high. Geophysical work remained at about the same level as the past 5-6 years but surface mapping continued to decline sharply. Most of the exploration interest and significant discoveries were in the Middle Devonian, in the Gilwood Sand of north-central Alberta, the dolomite beds of the Muskeg-Keg River Formations of northwestern Alberta, and the Slave Point reefs of northwestern Alberta and adjoining areas of British Columbia and the Territories. Other highlights of 1965 were: (1) a sharp rise in land acquisitions, particularly in the Territories and Saskatchewan; (2) record production in all sectors (liquids, gas, and sulfur) of the industry; and (3) approval by the National Energy Board of new gas exports (previously approved by Alberta in 1964) from Alberta of 3.4 TCF (1.61 TCF for Alberta and Southern, 1.63 TCF for Trans-Canada, and 0.11 TCF for Canadian Montana) for approximately a 25-year period. The Board altered its previous rules for calculating surplus gas by changing from 30-year demand and reserves to 30-year demand and 20-year reserves. In establishing surplus, the Board also modified its previous stand by allowing reserves beyond economic reach to be included as surplus. Comparisons below are with 1964: Table