Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-11-11
NO CHANGE IS
EXPECTED IN
NORTH MARKET

No immediate change in the
Canadian marketing situation as
regards Montana Is contemplated
by Montana oil operators as a re-
suit OF the sale by The Texas COM
pany of its Canadian outlets to
IMcColl-Frontenac OH Co. OF Mon
ltreal. Since that company has no
production and no refining facilities
in western Canada Il Is believed that
/ 1t will continue TO buy refined pro-
ducts from International Refining
Co, at Sunburst. ]. f. Edwards,
manager of International. who re-
turned last week from New York.
stated on Monday that he has no
1 official notice from The Texas
company OF the reported sale.
McColl-Frontenac was reported
several months ago to be preparing
TO build a refinery in Alberta, this
coming from evidence submitted to
the provincial Royal commission
investigating the Alberta oil In
dustry. However, the development
OF production must precede the
construction of a plant. Since this
would require considerable time,
future developments in Turner
Valley field may have an import
ant influence on additional re-
finery construction
Competent oil men who have
studied decline charts in Turner
Valley are of the opinion that this
field is past its peak. Although
its potential IS shown to be much
higher, the most sanguine OF AL
berta operators say that the field
can today produce $4,000 barrels
per day against a present allowable
OF 10000 barrels The rapid de-
cline OF bottom hole pressure
means that most OF the wells go
on the pump In the not distant
future. Drastic efforts are being
made by the Alberta board TO con-
serve gas pressure in order to de-
lay the day when pumping Is
necessary.
According to the Journals Cal
gary informant the Texas COM
pany has the sole license to i'm
port Ethyl gasoline into Alberta.
He incidentally comments that the
provincial royal commission has
taken well over a year to enquire
into Alberta's SIS. 100000 invest
ment. contrasted with the TNEC
Investigation into the American
thirteen billion dollar oil industry
In four and a half weeks.
He writes that two questions the
Alberta commission intends to con-
slider are:
SHOULD Montana gasoline come
into Alberta at all and should
be allowed instead OF
It to one company" He
adds:
According 10 the Alberta
Petroleum association, II the
Canadian federal government
did its duty in regard TO dump
ing. &c would keep up employ
ment I'm the oil industry and
keep Canadian money at home.
In light OF the fact that small
refiners I'm the Valley can not
obtain sufficient oil to supply
their needs from the wells
under contract to them because
OF conservation orders the
complaint Of the A. p. A.
lacks consistency"
1t is understood that because of
he gas conservation rules laid
Town, the only absorption plant
hat will be able to run In Turner
1alley will be the Imperial plant
which processes the gas delivered
o the Calgary gas lines. There is
lot enough gas from producing oil
wells to supply any other plant.
One we'll informed Montana OPP
rator this week expressed the be-
ief that Turner Valley will shortly
a eaIfad wrcw N uwoHuaa az "a
acity in order to supply points in
astern Canada where ALI refining
apacity will be turned over to the
owing to the tremendous
mount of shipping from Canadian
orts resulting from the new
american neutrality regulations.
These several factors. including
he time element. are said to pre-
Iude any drastic changes in the
lontana gasoline market