Evening star., 1951-12-14
Oil and Gas Industry
Takes Gigantic Shape
I'm Western Canada
BY the Assoeiuied Press

EDMONTON, Alberta, Dec. IA.
The oil and natural gas indus
try of Western Canada. still a
youngster, took on the proportions
of a giant in 1851.
It was the industrys greatest
year for production. for explora-
tion activities and for cash pro-
ceeds. But even greater develop
ments are in prospect for next
year.
1t was almost an all-Alberta
show in 1851 but the three other
Western provinces made promis-
ing discoveries. The first oil was
found in British Columbia. Sas-
'katchewan added several impor-
tant oil and gas discoveries. and
Southwestern Manitoba had its
first show of oil
New Outlet in Prospect.
At the year end a second major
outlet for Alberta oil appears in
prospect. Premier E. C. Manning
said the PROVINCES production
had reached the point where an
other outlet was needed immedi-
ately to keep pace with the fast
growing number of producing oil
wells.
| The best bet was that the oil
would be piped to the closest mar
ket. the Canadian West Coast
and the United States Pacific
Northwest where the demand for
Alberta crude is mounting. Sew
eral companies wishing to pipe
Alberta oil to the Coast through
the Yellowhead or Crows Nest
mountain passes await approval
from the Board of Transport
Commissioners at Ottawa.
This year saw Alberta crude
reach Eastern markets in Canada
for the first time. The oil, some
13 million barrels of it, flowed
through the 500 million interpro-
vincial pipeline, stretching 1,l50
miles from Edmonton to the lake.
head from where it was trans
ported by tankers down the Great
Lakes.
Lakes Closed in Winter.
! Plans are to increase this flow
to an estimated 18 million bar
Irels next year, and to 26 million
lin 1858. But oil cannot move
across the Great Lakes during the
winter. The proposed year-round
pipeline to the West Coast, which
would take a year to build. would
help Offset this factor and prevent
production cut-backs in Alberta.
Natural gas pipelines also were
in the news. The Alberta Legis-
lature last April approved the
first major export of natural gas
south into Montana solely for
Essential defense production by
the Anaconda Copper Co. The
70-mile pipeline was completed
by year-end and only approval Of
the United States Federal Power
Commission was needed to start
the gas moving south.
Alberta's oil and gas industry
developed to such an extent-in
one week last August oil output
reached record 180,423 barrels
daily-that Premier Manning was
moved publicly to envisage the
possibility of a tax-free province.
The government has mapped out
a debt-retirement program by
which it hopes to make Alberta
debt-free by about 1878.
Rich Sands Still Untapped.
Still untapped in Northern
Alberta are the vast McMurray
oil sands. estimated to hold the
worlds largest known source of
oil.
This year the government
brought in the continents leading
Ioil and engineering experts who
agreed that the sands could be
economically tapped.
No new major fields like Red
water or Leduc were discovered in
1851. But a number of smaller
fields, especially at Wizard Lake
west Of Leduc. gave great promise.
A Wizard Lake well uncovered
a pay zone of 603 feet of oil
bearing strata. one of the thickest
on the continent.
I