The production of natural gas and petroleum in Eastern Canada declined sharply in 1974. A total of 7,762, 551 MCFG and 746,000 BO was produced. This is a production decrease of 20% gas and 8.6% oil from 1973. In Eastern Canada geophysical activity and exploratory drilling declined as compared with 1973. Some acreage was released in Quebec and in the offshore areas of Hudson Bay, the Atlantic, and the Labrador Sea. Seven dry holes were completed on inland areas, 3 dry holes offshore in Hudson Bay, 3 indicated gas discoveries, and 17 dry holes in the Atlantic and Labrador Sea regions.

In southwestern Ontario, 80 exploratory tests and 60 development wells were drilled in 1974, 4 more development wells than in 1973. Silurian exploratory drilling, both onshore and in Lake Erie, increased significantly although Silurian development drilling remained almost the same as the previous year. The overall increase in exploratory drilling is reflected in a 26% increase in total footage drilled.

Three gas-bearing Silurian reef structures in Lambton County and an Ordovician (Trenton) gas discovery in Aldborough Township, Elgin County, were the most significant discoveries in 1974.

In Quebec, 7 dry exploratory tests were drilled. No data are available on geophysical work done during the year. Onshore in the Atlantic provinces (New Brunswick, Nova Scotia, and Newfoundland) there was no exploratory drilling. Offshore activity was relatively active with 20 completions, 9 less than in 1973. Of the 20 tests, 17 were drilled in the Atlantic, 2 in the Labrador Sea and 1 in the Gulf of St. Lawrence. Three wells are classified as discoveries.

In the offshore region, 23.5 crew-months of geophysical work was completed. The total area under permit for oil and gas exploration in the offshore decreased by 51 million acres.