Development and exploratory drilling continued to increase in Western Canada. The total number of wells drilled was 3,283, and 899 of these were exploratory tests. At the end of the year there were 112 rigs on exploratory tests and 130 seismic crews operating in Western Canada.

The discovery picture for 1956 was diversified in that many discoveries were made in several horizons particularly in Alberta and British Columbia. The most important discovery was made in rocks of pre-Middle Devonian age, the "Granite wash." Middle and Upper Devonian reef deposits and other carbonates were found productive in several localities in the two provinces. Mississippian oil and gas was discovered in Alberta and British Columbia, and many Mississippian oil pools were found in Saskatchewan. There were many discoveries of gas and oil in sediments of Permo-Pennsylvanian, Triassic, Jurassic, and Cretaceous age.

Production of oil and natural gas increased by 32% and the production of oil amounted to 171 million bbls.

Two gas pipelines for transporting gas to eastern and western markets are in various stages of completion. The Westcoast Transmission Pipeline to the west coast of Canada and the United States (Northwest) will be completed by the end of 1957. The Trans Canada Pipeline began construction during the year.