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Published online by Cambridge University Press: 24 July 2012
This article traces the birth and early growth of a major industry. Before Imperial Leduc No. 1 brought in the Edmonton field in 1947, Canadian oil producing operations had been sporadic. The Edmonton and subsequent discoveries in western Canada created an industrial giant overnight, providing historians and economists with a remarkable, documented, accessible case study of the process of industrial growth. Imperial Leduc No. 1 generated economic impulses that surged through a nation. The immediate effects were felt by the Canadian oil industry itself, which crystallized into a new pattern of integration. The domestic consumer of petroleum products was vitally affected, and his counter-reactions created new necessities. Canadian economic development in general was immediately and largely influenced; the flow of oil touched off a chain reaction in state and national fiscal affairs, in agriculture, in population trends, in education, in public expenditures, and in Dominion politics. Nor was the end here. The impulse for change swept across international boundaries, affecting monetary exchange and the competitive alignments of the world petroleum industry.
1 Dominion Bureau of Statistics, The Canada Year Book, 1954 (Ottawa, 1954), 962Google Scholar; Imperial Oil Limited, Reference Data, Canadian Oil Development (Toronto, 1954), 9Google Scholar, hereafter cited as Imperial Oil Reference Data. Hereafter the Dominion Bureau of Statistics will be abbreviated to D. B. S.
2 D. B. S., Canadian Statistical Review (Oct., 1948), p. ivGoogle Scholar; E. M. Holbrook, Oil from the Earth, reprinted from Canadian Geographical Journal and distributed by Imperial Oil Limited (4th ed.; Toronto, 1954), 18, 21.
3 When U. S. and Canadian statisticians say barrels, they mean different quantities. The Canadian barrel contains 35 Imperial gallons, against the U. S. barrel of 42 gallons. The Imperial gallon contains 160 fluid ounces; the U. S., 128 fluid ounces.
4 Twaits, W. O., Canadian Oil at the Eighth Milestone. An Address by W. O. Twaits, Vice-President and Director, Imperial Oil, to the American Institute of Mining and Metallurgical Engineers, Chicago, Illinois, February 15, 1955 (Toronto, 1955), 2Google Scholar; Holbrook, Oil from the Earth, 9; Mackenzie, W. D. C., Summing Up (Imperial Oil, Toronto, 1954?), 2Google Scholar; Province of Alberta, Budget Speech of the Hon. Ernest C. Manning, Treasurer of the Province of Alberta, delivered on March 5th, 1948, in the Legislative Assembly of Alberta, on Moving the House into Committee of Supply (Edmonton, 1948), 5Google Scholar; K. R. Wilson, The Oil Bonanza, Reprint No. 106 (from Financial Post, Nov. 24, 1951), Information Division, Department of External Affairs, Government of Canada (Ottawa, n. d.), 3. [Hereafter all budget speeches will be cited in this form: Province of Alberta, Budget Speech, 1948, p. 4.]
5 Bank of Nova Scotia, “The Impact of Leduc,” Monthly Review (Sept., 1954), p. 1.Google Scholar
6 Gordon M. Grant, Now We've Got Oil Plenty — and a Market Challenge, Reprint No. 175 (from Financial Post, Dec. 4, 1954), Information Division, Department of External Affairs, Government of Canada (Ottawa, n. d.), 1.
7 White, J. R., Prairie Progress (Imperial Oil, Toronto, 1954), 1, 3Google Scholar; Mackenzie, Summing Up, 3; Grant, Note We've Got Oil Plenty — and a Market Challenge, 7; “Birth of an Oil Well,” Imperial Oil Review (Imperial Oil Limited, Toronto, April, 1947), pp. 3–5.
8 “Birth of an Oil Well,” 3.
9 “Editorial,” Imperial Oil Review (April, 1947), p. 1; McCaslin, Leigh S. Jr, “Western Canada,” Oil and Gas Journal (Aug. 30, 1947), pp. 71–74Google Scholar; Province of Alberta, Budget Speech, 1948, pp. 5–6; “Birth of an Oil Well,” 3.
10 Directories of firms engaged in the petroleum production and refining industries may be found in the D. B. S. reports entitled The Crude Petroleum and Natural Gas Industry and The Petroleum Products Industry.
11 Grant, Now We've Got Oil Plenty, 5–6; McCaslin, “Western Canada,” 71, 74; Recent Developments in the Canadian Oil Industry, Reprint No. 90 (from Monetary Times, Dec, 1950), Information Division, Department of External Affairs, Government of Canada (Ottawa, n. d. ), 12; D. B. S., The Crude Petroleum and Natural Gas Industry, 1952 (Ottawa, 1954), H–7Google Scholar; Mackenzie, Summing Up, 6.
12 R. B. Toombs, Economies Branch, Department of Trade and Commerce, letter to author, May 9, 1955; Twaits, Canadian Oil at the Eighth Milestone, 4; Imperial Oil, Reference Data, 10.
13 White, Prairie Progress, 13; Twaits, Canadian Oil at the Eighth Mitestone, 3; Imperial Oil, Reference Data, 6.
14 Mackenzie, Summing Up, 3; Grant, Now We've Got Oil Plenty, 6.
15 C. K. LeCapelain, Chief, Lands Division, Department of Northern Affairs and National Resources, letter to author, May 2, 1955; Government of Canada, Order in Council, P. C. 1954–1590, Oct. 19, 1954; Recent Developments in the Canadian Oil Industry, 7, 11.
16 Shaw, E. W., Summary of “Three Billion Barrels of Oil,” an Address by Or. E. W. Shaw, Exploration Advisor, Imperial Oil Ltd., before the Twenty-third Annual Convention of the Prospectors and Developers Association, March 7, 1955 (Imperial Oil, Toronto, 1955), 2Google Scholar, hereafter cited as Shaw, Summary; Province of Alberta, Budget Speech, 1950, p. 5; Grant, Now We've Got Oil Plenty, 5; Recent Developments in the Canadian Oil Industry, 1, 2, 4, 11.
17 Shaw, Summary, 2; Recent Developments in the Canadian Oil Industry, 3, 11; Grant, Now We've Got Oil Plenty, 6.
18 Holbrook, Oil from the Earth, 21; Shaw, Summary, 2–3.
19 Grant, Now We've Got Oil Plenty, 7.
20 Wilson, The Oil Bonanza, 3.
21 Province of Alberta, Budget Speech, 1949, p. 4; ibid., 1950, p. 5; Province of Saskatchewan, Budget Speech, 1955, p. 16; Holbrook, Oil from the Earth, 21; Grant, Now We've Got Oil Plenty, 2; Shaw, Summary, 2–3.
22 Mackenzie, Summing Up, 1; Wilson, The Oil Bonanza, 1; Grant, Now We've Got Oil Plenty, 2, 6.
23 Province of Alberta, Budget Speech, 1948, p. 6; ibid., 1950, p. 3; Twaits, Canadian Oil at the Eighth Milestone, 6.
24 C. A. L. Hogg, Deputy Minister of Mineral Resources, Saskatchewan, letter to author, May 12, 1955; Department of Mineral Resources, Saskatchewan, The Oil and Gas Conservation Act, 1952, and Regulations Thereunder (Regina, 1953), passim; J. G. Cowan, Deputy Minister, Department of Mines and Natural Resources, Manitoba, letter to author, May 13, 1955; Province of Manitoba, Bill No. 79, An Act to Amend the Mines Act, Legislative Assembly of Manitoba, 1955, pp. 1–2; Department of Mines and Natural Resources, Manitoba, Regulations Under “The Mines Act,” 1940 R. S. M. Ch. 136, for the Disposal of Oil and Natural Gas Rights on Crown Lands and the Exploration, Development and Production of Oil and Natural Gas in Manitoba (Edmonton, 1953), passim.
25 D. B. S., The Crude Petroleum and Natural Gas Industry, 1952, p. H-5; Imperial Oil, Reference Data, 6; D. B. S., The Petroleum Products Industry, 1949 (Ottawa, 1951), p. C–8Google Scholar; ibid., 1952, p. C-8; Toombs, letter to author, May 9, 1955; Holbrook, Oil from the Earth, 17; Royal Bank of Canada, “A Story of Oil,” Monthly Letter (Nov., 1949), p. 4.Google Scholar
26 Twaits, Canadian Oil at the Eighth Milestone, 3; Williams, Neil, “Leduc Rapidly Becoming Canada's Greatest Oil Reserve,” Oil and Gas Journal (April 15, 1948), p. 100Google Scholar; Imperial Oil, Reference Data, 6; Royal Bank of Canada, “A Story of Oil,” 3.
27 D. B. S., Petroleum Products Industry, 1949, p. C-13; ibid., 1952, p. C-13; Imperial Oil, Reference Data, 2, 3; Holbrook, Oil from the Earth, 17; Wilson, The Oil Bonanza, 2.
28 Wilson, The Oil Bonanza, 3–4.
29 Grant, Now We've Got Oil Plenty, 2; Moore, Trevor F., Remarks of Mr. Trevor F. Moore, Vice-President, Imperial Oil Ltd., to the Advertising and Sales Club, Winnipeg, Manitoba, Apra 18, 1955 (Imperial Oil, Toronto, 1955), 2, 4Google Scholar, hereafter cited as Moore, Remarks; Twaits, Canadian Oil at the Eighth Milestone, 9–11.
30 Mackenzie, Summing Up, 4; Imperial Oil, Reference Data, 7.
31 Holbrook, Oil from the Earth, 21. Recent Developments in the Canadian Oil Industry, 4, 13; E. M. Holbrook, Information Division, Imperial Oil Ltd., letter to author, April 29, 1955; Grant, Now We've Got Oil Plenty, 3.
32 Holbrook, Oil from the Earth, 21.
33 D. B. S., Petroleum Products Industry, 1949, p. C-5; ibid., 1952, p. C-5; Moore, Remarks, 4.
34 D. B. S., Petroleum Products Industry, 1949, p. C-6; ibid., 1952, p. C-7.
35 Ibid., 1949, p. C-3; ibid., 1952, pp. C-3, C-4, C-21.
36 Province of Alberta, Budget Speech, 1951, p. 4; Recent Developments in the Canadian Oil Industry, 5.
37 Twaits, Canadian Oil at the Eighth Milestone, 9–11; Grant, Now We've Got Oil Plenty, 1–2.
38 Twaits, Canadian Oil at the Eighth Milestone, 2, 8; Recent Developments in the Canadian Oil Industry, 9; Bank of Nova Scotia, “Impact of Leduc,” 3–4.
39 Province of Alberta, Budget Speech, 1950, p. 5; Twaits, Canadian Oil at the Eighth Milestone, 7–8, 11–12.
40 Mackenzie, Summing Up, 4; Toombs, letter to author, May 9, 1955; D. B. S., Crude Petroleum and Natural Gas Industry, 1952, p. H-8.
41 Grant, Now We've Got Oil Plenty, 4.
42 Wilson, The Oil Bonanza, 1–2.
43 Province of Alberta, Budget Speech, 1950, p. 6; ibid., 1953, p. 8; Wilson, The Oil Bonanza, 1; Recent Developments in the Canadian Oil Industry, 8.
44 Wilson, The Oil Bonanza, 5–6.
45 Province of Alberta, Budget Speech, 1954, pp. 9–10.
46 Wilson, The Oil Bonanza, 6–7; Bank of Nova Scotia, “Impact of Leduc,” 4.
47 White, Prairie Progress, 11.
48 W. L. Haney, Administrative Assistant, Deputy Provincial Treasurer, Saskatchewan, letter to author, May 2, 1955; F. G. Stewart, Acting Deputy Provincial Treasurer, Alberta, letter to author, April 25, 1955.
49 D. B. S., Petroleum Products Industry, 1949, p. C-12; ibid., 1952, p. C-12; Royal Bank of Canada, Oil and Gas Department, Bulletin No. 17, Industry Statistics (Calgary, 1954), 3.
50 Toombs, letter to author, May 9,1955; Province of Alberta, Budget Speech, 1949, p. 5; Holbrook, Oil from the Earth, 18; Recent Developments in the Canadian Oil Industry, 5; Grant, Now We've Got Oil Plenty, 7; Bank of Nova Scotia, “Impact of Leduc,” 4.
51 Haney, letter to author, May 2, 1955; F. B. Brisbin, Assistant Deputy Provincial Treasurer, Manitoba, letter to author, April 29, 1955; Cooper, D. H., Benefits of the Western Oil Development (Imperial Oil, Toronto, 1954), 3.Google Scholar
52 Recent Developments in the Canadian Oil Industry, 7; Stewart, letter to author, April 25, 1955; Province of Alberta, Budget Speech, 1950, p. 18; ibid., 1955, p. 24; Bank of Nova Scotia, “Impact of Leduc,” 1.
53 Bank of Nova Scotia, “Impact of Leduc,” 1; Province of Alberta, Budget Speech, 1953, p. 3.
54 Grant, Now We've Got Oil Plenty, 7; Royal Bank of Canada, “A Story of Oil,” 3.
55 Bank of Nova Scotia, “Impact of Leduc,” 4; White, Prairie Progress, 12; Moore, Remarks, 4; Cooper, Benefits of Western Oil Development, 10.
56 Bank of Nova Scotia, “Impact of Leduc,” 1–3.
57 Ibid., 2; Province of Alberta, Budget Speech, 1948, p. 7; ibid., 1952, p. 7; ibid., 1954, p. 12.
58 I. M. Fraser, Dean of Engineering, University of Saskatchewan, letter to author, April 27, 1955; Recent Developments in the Canadian Oil Industry, 10, 12.
59 D. B. S., Ninth Census of Canada, 11 vols. (Ottawa, 1953–?), 1:1–1Google Scholar; Bank of Nova Scotia, “Impact of Leduc,” 1, 2.
60 Bank of Nova Scotia, “Impact of Leduc,” 2.
61 Ibid., 4; Toombs, letter to author, May 9, 1955; Province of Alberta, Budget Speech, 1950, p. 4; White, Prairie Progress, 10.
62 Province of Alberta, Budget Speech, 1951, p. 6; ibid., 1955, pp. 10–11.
63 Innis, Harold A., Settlement and the Mining Frontier, IX (Canadian Frontiers of Settlement, 9 vols.; Toronto, 1936), 205.Google Scholar
64 Recent Developments in the Canadian Oil Industry, 14.
65 Wilson, The Oil Bonanza, 7.
