About This Item

Share This Item

The AAPG/Datapages Combined Publications Database

CSPG Bulletin

Abstract


Bulletin of Canadian Petroleum Geology
Vol. 32 (1984), No. 1. (March), Pages 74-82

Oil and Gas Developments in Western Canada in 1982

P.W. Hay, D.C. Robertson

ABSTRACT

In 1982, petroleum industry activity in western Canada continued to decline as a result of economic recession, dropping oil and gas prices, high interest rates and a worldwide oil surplus. Many smaller companies disappeared and staff cuts were common throughout the industry. The total number of wells drilled dropped by 9%, to a total of 6,285. Exploratory drilling decreased by 26% to 2,288 wells, whereas development drilling increased 4% to 3,997 wells. The exploratory success rate increased from 62% to 65% in 1982, with 761 oil discoveries and 732 gas discoveries. The development success rate increased slightly from 88% to 89%, with 1,742 oil completions and 1,823 gas completions. A late surge in drilling resulted from provincial and federal incentive programs designed to stimulate activity. Average well depth decreased in all five western areas, and total revenue from land sales continued to plummet. Alberta land sale bonuses totalled $334 million, British Columbia $17 million, Saskatchewan $34 million and Manitoba $1 million. Average price paid per hectare dropped substantially in the three westernmost provinces, but increased by 75% in Manitoba. Number of hectares for sale declined in all areas.

Previous HitDownwardNext Hit exploratory drilling trends, which began in 1981, were accentuated in 1982. Alberta, Saskatchewan and British Columbia activity dropped markedly, but Manitoba more than doubled. In Alberta, drilling was more cautious, with increased development drilling and fewer dry holes. A significant Devonian pinnacle reef oil discovery was made by Gulf Canada in the Fenn - Big Valley - Rumsey area and major activity continued to be concentrated in the Peace River Arch, Shekilie and West Pembina areas. The $13.5 billion Alsands project was cancelled. No discoveries of major significance were made in either British Columbia or Saskatchewan. Manitoba activity continued to soar for the third consecutive year, as result of the 1980 Jurassic oil discovery at Waskada.

In the Arctic Islands, a major stepout oil discovery was made at Cisco, off Lougheed Island, and gas was discovered at Sculpin, near Ellef Ringnes Island. Beaufort Sea stepout oil discoveries were made at West Atkinson and Tarsiut. Delineation drilling on the Tarsiut structure has been disappointing and estimated reserves are less than anticipated. Future major exploration activity in the Beaufort Sea will continue as a result of several large farmouts by Esso and Gulf to Canadian consortiums. Esso also has a major development drilling project in the old Norman Wells oil field, astride the Mackenzie River.

The year 1982 was a pronounced Previous HitcontinuationNext Hit of 1981, with exploration interest shifting from the provinces to the northern and eastern frontiers. Within the provinces, drilling shifted markedly to oil plays, because of the depressed gas market, while expenditures were down significantly. The downturn in exploration appears to have ended, due in part to provincial drilling incentives, but no major improvement in activity is predicted for 1983.

PROGRES EN EXPLORATION PETROLIERE DE L'OUEST CANADIEN EN 1982

RESUME

L'activite de l'industrie petroliere dans l'Ouest canadien poursuivit son declin en 1982 a cause du ralentissement economique, de la chute des prix de petrole et de gaz naturel, des hauts taux d'interet et du surplus petrolier mondial. Maintes petites compagnies disparurent, et les reductions de personnel furent communes. Le nombre total des puits fores baissa de 9%, a 6295. Le nombre de puits d'exploration baissa de 26%, a 2288 tandis que celui des puits de developpement augmenta de 4%, a 3997. Le taux de succes exploratoire alla de 62 a 65% en 1982 avec 761 decouvertes de petrole et 732 de gaz naturel, celui de developpement de 88 a 89% avec 1742 puits de petrole et 1823 de gaz naturel. Un accroissement tardif du nombre de puits vint des programmes gouvernementaux (federal et provincial) vises a stimuler l'activite dans ce secteur. La profondeur moyenne des puits fut en declin a travers les cinq regions de l'Ouest et les revenus totaux provenant de la vente de concessions poursuivirent leur chute. Les primes de terrain en Alberta s'ajouterent a $334 millions, $17 millions en Colombie Britannique, $34 millions en Saskatchewan et $1 million au Manitoba. Le nombre d'hectares vendus fut en declin partout.

La reduction du nombre de puits exploratoires fores en 1981 fut accentuee en 1982. L'activite fut en fort declin en Alberta, Saskatchewan et Colombie Britannique, cependant qu'elle fut doublee au Manitoba. Elle fut timide en Alberta avec plus de forages de developpement et moins de puits steriles. Gulf Canada fit une decouverte significative d'un recif en pinacle ("pinnacle reef') Devonien dans la region de Fenn -- Big Valley -- Rumsey et la plupart des forages eurent lieu dans les regions de Peace River Arch, Shekilie et West Pembina. Le projet Alsands ($13,5 milliards) fut annule. Aucune decouverte d'importance ne fut effectuee en Colombie Britannique ou Saskatchewan. L'activite exploratoire continua son elan pour la troisieme annee consecutive au Manitoba, apres une decouverte en 1980 de petrole Jurassique a Waskada.

Une decouverte majeure d'extension de champ petrolier fut foree a Cisco au large de Lougheed Island, ainsi que de gaz naturel a Sculpin pres d'Ellef Ringnes Island et de petrole a West Atkinson et Tarsuit en Mer Beaufort. Les resultats de forage de delineation de la structure Tarsiut furent decevants et les reserves moins que celles anticipees. La plupart de l'activite exploratoire future en Mer Beaufort sera issue de 'farmouts' majeurs de concessions Esso et Gulf vers des consortiums canadiens. Esso a un large projet de developpement dans le champ age de Norman Wells sur les rives du Fleuve Mackenzie.

En Previous HitcontinuationTop de l'an 1981, l'an 1982 vit l'interet exploratoire porte des provinces de l'Ouest vers les territoires des des frontieres du Nord et de l'Est. A l'interieur des provinces, l'activite de forage changera en faveur des champs petroliers a cause du faible marche de gaz naturel, et les depenses virent un declin significatif. Cependant que la baisse en activite exploratoire voit sa fin, aucun accroissement n'est prevu pour l'an 1983.

1 Reprinted with permission from American Association of Petroleum Geologists Bulletin, v. 67, October 1983

End_Page 74-------------------------

Pay-Per-View Purchase Options

The article is available through a document delivery service. Explain these Purchase Options.

Watermarked PDF Document: $14
Open PDF Document: $24