ABSTRACT

Canada had a decrease of exploratory and development activity during 1974, resulting from changing economic and political conditions affecting the industry. A total of 1,754 exploratory wells were drilled, a decrease of 464 or 20.9% from 1973. Development wells totalled 2,486, a small decrease of 1.6%.

There were 108 oil and 530 gas wells classified as discoveries for an exploratory success ratio of 36.9%. 631 development wells were completed as oil producers and 1,435 as gas producers for a development success ratio of 83.8%.

In Alberta the aggressive exploration and development play for shallow Cretaceous gas continued, coupled with increasing interest in the deeper parts of the Alberta basin and in the Foothills disturbed belt. At least 7 significant gas discoveries were made. Saskatchewan had a drastic decrease of 54.4% in exploratory drilling, while in British Columbia there was a lesser decline of 14%.

Exploratory drilling continued at a high level in the Arctic Islands with 20 wells being drilled. In the Mackenzie Delta 4 significant oil and gas discoveries were made from the 19 wells drilled during the year.

Ontario showed an increase of 51.9% in exploratory drilling and 3.2% in development drilling. Only 19 wells were drilled offshore on the east coast, compared with 30 in the previous year, but 2 significant gas discoveries were, made on the Labrador shelf. Six exploratory wells were drilled in Quebec and 2 in Hudson. Bay.

Geophysical activity continued to slowly decline in Alberta and adjacent provinces, but continued strongly in the Territories and Arctic Islands. Geophysical activity increased in the Maritimes and remained at the same level in Ontario and Hudson Bay. Offshore activity on the east coast remained high.

Production of liquid hydrocarbons was down by 6% from the previous year, largely due to the decrease of exports to the United States. The production of natural gas continued at a peak rate -- up 3.1% from 1973.

Proven reserves of crude oil continued to decline in all the older areas because of a lack of major discoveries, while natural gas liquid reserves increased slightly due to the addition of 32 million barrels of Mackenzie Delta reserves. Natural gas reserves, after production, increased 8.1% due to the results of the gas exploration program in Alberta, where reserves increased by 4%, and by the addition of 4 Tcf of proven reserves in the Mackenzie Delta.