Western Canada includes Manitoba, Saskatchewan, Alberta, British Columbia, Yukon and Northwest Territories, Arctic Islands, and the offshore areas of British Columbia and the Arctic.

A total of 2,907 exploratory and development wells were drilled in 1968, 3% more than in 1967. Of the 1,512 exploratory wells, 29% were successful.

Exploration activity in Alberta occurred primarily in central and southern Alberta, and in the Rainbow-Zama area of northwestern Alberta. However, 6 very significant gas discoveries were made in the foothills or deep plains area of Alberta. Saskatchewan had 115 pre-Mississippian tests drilled with only 1 success. However, on its total exploratory drilling Saskatchewan had a 17% success.

Joint participation projects were the order of the day in the Northwest Territories and Arctic where Operation Geoquest (a $2.3 million seismic and core-hole program in the southern part of the Northwest Territories), Operation Arcticquest (a $6.7 million seismic and strat-drilling program on the Arctic coastal plain), and Panarctic (a $30 million seismic and drilling program in the Arctic Islands) were either started or underway.

Shell drilled 8 wells in the West Coast (Pacific) offshore, with no successes.

Production of liquid hydrocarbons, marketable gas, and sulfur reached all-time highs in 1968. The 7% increase from 1967 of liquid hydrocarbons was in large part the result of increased exports to the United States. The future of further Athabasca tar sand plants was undecided as the Alberta Conservation Board deferred Syncrude's 80,000 b/d plant until November 1969, pending evaluation of the Prudhoe Bay Alaskan oil discovery.

Sulfur production showed a 35% increase in 1968.

Remaining reserves of crude oil, natural gas liquids, marketable gas and sulfur, all increased during 1968.

Industry land holdings increased to 519 million acres in 1968 with most of the gain resulting from the land activity in the far north, following the Prudhoe Bay discovery (126 million acres were added in the Yukon, Northwest Territories, and Arctic Islands).