Economic and Other Aspects of Recent Petroleum and Natural Gas Discoveries In Western Canada

"The year 1947 was a momentous one in the history of the petroleum industry in Canada. It was in that year that Imperial Oil Limited made its discovery at Leduc, the forerunner of other discoveries, large and small, and the spark wl1ich started a most intensive exploration and development programme there.If, to use boxing parlance, Leduc was the first blow of a one-two combination which left doubting Thomases groggy, then Redwater was the number two blow which achieved the knockout. The oil industry's exploration leaders did about-face without delay and the rush of oil operators of all classifications to western Canada began. It is still continuing, and the influx of capital which the operators have brought in and are bringing in has a bouyant effect upon the over-all economy. The boom is on, but it is a sound one, and it is difficult to conceive that it will have anything but the most beneficial effect on Canada, and particularly western Canada.The petroleum industry is an important segment of the general economy. Its activities call for tremendous amounts of capital; its employees are well paid; it is a large customer for a wide range of products of other industries; its commodities are essential to the citizens and the nation.The industry is carried on by highly aggressive and independent groups and individuals, of which a small minority are integrated while the majority are relatively small operators engaged in only one or two phases of the business. Competition is the rule and, since the nature of the business is mass production, the industry is faced from time to time with serious problems, many of which are peculiar to it."