Developments in Western Canada in 1967

Abstract

Western Canada includes: the Provinces of Manitoba, Saskatchewan, Alberta, and British Columbia; the Pacific offshore; the Yukon and Northwest Territories; the Arctic Islands; and the Arctic offshore. A total of 2,828 exploratory and development wells was drilled in 1967, 5% fewer than in 1966. Of the 1,379 exploratory wells, 29% were successful. Exploratory activity, both drilling and seismic, was concentrated in the Rainbow-Zama area of northwestern Alberta, searching for the prolific Devonian pinnacle reefs. Four significant gas discoveries in the Alberta Foothills and deep Plains also have kept industry interest high in this area. The biggest news concerning Canada's far north came when Panarctic Oils Ltd., a consortium of the Government of Canada and 20 firms and individuals, announced that they would undertake a $20 million 3-year exploration program on their 44 million acres in the Arctic Islands, to start early in 1968. Production of liquid hydrocarbons, marketable gas, and sulfur reached all-time highs in 1967. The 9% increase from 1966 of liquid hydrocarbons was in large part due to the Middle East crisis, which caused exports to the United States to rise 20% above the 1966 figure. Canada's first commercial plant in the Athabasca tar sands was open officially; production is expected to reach its 45,000 b/d allowable in early 1968. Marketable gas sales to the United States increased nearly 18% from 1966. Remaining reserves of crude oil, natural gas liquids, marketable gas, and sulfur increased during 1967, but in all cases gross additions were down from 1966. Industry land holdings increased to 392 million acres in 1967, however, revenue from Crown sales declined 12% to $126 million. In the Rainbow-Zama area land prices averaged $487 per acre, with bonuses going as high as $6,700 per acre, compared with the Western Canada average of less than $8 per acre.