Exploration activity in Canada showed a progressive increase throughout the year. In terms of geophysical crews engaged, Western Canada was one of the most active areas in the world. The exploration effort was greater than that of 1947 and 1948 combined and was rewarded with the discovery of important new fields in Alberta where the exploration front was extended into the virgin territory of the remote northern region of the province. The greatest increase in land acquisition activity took place in Saskatchewan where almost the entire part of that part of the province, which is underlain by sedimentary rocks, was taken up by either reservation or lease.

The total number of wells drilled in Western Canada amounted to 845, of which 784 were drilled in Alberta, 58 in Saskatchewan, and 3 in Manitoba. In Alberta there were 549 development wells drilled and 235 exploratory holes. Two hundred of the 235 exploratory holes were new-field wildcats, of which 13 were oil discoveries, 18 were gas discoveries, 2 were gas-condensate wells, and 167 were dry holes. The successful discovery rate in Alberta was 20.4 per cent of all exploratory wells drilled.

The reflection seismograph was the most popular exploration tool used and was credited with practically all of the new discoveries. The number of geophysical crews engaged increased throughout the year. In December, which is the severest operating month of the year, 103 crews were active.

Developments during 1949 increased the estimated oil reserves of Western Canada to approximately 1,100 million barrels and materially increased the gas reserves of Alberta. Daily oil production was increased to approximately 60,000 barrels per day to satisfy the demand for petroleum products in the present economic marketing area of Western Canada for Alberta crude. In order to expand the marketing area, plans were completed for the construction of a pipeline to transport crude to markets in Eastern Canada. Possibilities for the export of natural gas from Alberta were under consideration during the year. Two companies had applied for permits to export gas to the West Coast.

Exploration and development activities in Eastern Canada were on approximately the same scale as in 1948, no outstanding discoveries were made, and no important additions to geological information were obtained.

Two hundred and eighty-two development wells were completed, 280 in Ontario, and 2 in New Brunswick. Exploratory drilling consisted of 82 wells in Ontario, 1 in Gaspe, and 2 in New Brunswick. Five small gas pools were discovered in Ontario. The New Brunswick Oilfields Limited, and Shell Oil Company had seismic, gravity and magnetometer parties active in New Brunswick.