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• W1997710539 abstract "Alberta and Oil Kenneth J. Fairbairn* Once known as the poor relation of the provinces of Canada, Alberta today is rapidly emerging as a new economic power centre within the nation. Not only is this status recognized by decision makers of all kinds in other parts of Canada but also Alberta has made its position felt in parts of the world formerly visited only by federal government representatives. The turnaround in Alberta's fortunes began in 1947 when a major oil discovery was made near Edmonton. Since that time numerous additional discoveries of oil and natural gas have been made, and an integrated system of pipelines has been constructed to carry Albertan oil and gas to markets beyond the province. After a long period of experimentation, the extensive deposits of oil sands have been successfully and economically developed. At a time when Canada, along with other nations, is experiencing double-digit inflation and widespread unemployment , Alberta is gaining in economic strength and economic well-being. The temporal expansion of the Albertan petroleum industry since the major discovery of 1947 will be outlined briefly. Some attention will be devoted to the impact this has had on provincial development and, because of the unique situation in which the Albertan government is placed, some of the discussion will focus on the role the provincial government has adopted towards the development of resources under the condition of what is essentially a free enterprise system. Unlike the United States, under the Canadian constitution most mineral rights are reserved to the public * Dr. Fairbairn is an Associate Professor in the Department of Geography, University of Alberta, Edmonton. This is a revised version of a paper given at the annual conference in Santa Barbara, June 1979. 89 90ASSOCIATION OF PACIFIC COAST GEOGRAPHERS through its government. The legislative responsibilities between federal and provincial jurisdictions are set out in the British North America Act, which specifies that lands, mines, minerals, and the royalties they may derive belong to the provinces. In addition, the government receives oil revenues from the sale of crown leases, reservations, rentals, permits, and licenses. Since 1947 oil and gas revenues from all such sources have amounted to more than 9.7 billion dollars (to 1977), which is a substantial sum on a per capita basis. The government's policy with regard to the disposal and investment of this sum will be discussed later. Historical Outline Oliver Knight1 claimed it had become customary among oilmen to divide Albertan history into a before Leduc period and an after Leduc period. Leduc was the site of the first major oil discovery in Canada in 1947. Prior to this discovery it had been a lean time for oilmen in Canada. Strikes had been made, but the fields were not numerous and production was limited. In fact, Canada depended on other countries for about 90 percent of its oil requirements. Of the oil produced within the country, nearly 95 percent came from wells in Alberta. Nonetheless, the chief economic activity of the province, in terms of those who were gainfully occupied, was agriculture with 46.43 percent of the labour force. This underlines the essentially rural character of the economy and lifestyle at that time. The two largest cities, Edmonton and Calgary, in 1946 had a combined total population of 221,279, which represented 27.55 percent of the province's total population of 803,330. In 1946 the net value of agricultural production was only 249 million dollars, yet this amount was greater than the value of all other economic activity combined. Provincial government revenues in 1946 totaled 108.3 million dollars, more than half of which came from the government 's own financial operations, such as land sales and the like. Petroleum and natural gas licences and fees returned to the government amounted to one million dollars in 1945-46. 1 O. Knight, Oil—Canada's New Wealth, Business History Review, Vol. 30 (1956), p. 300. YEARBOOK · VOLUME 42 · 198091 The significance of the oil discovery at Leduc in 1947 was not merely in terms of its size (an estimated 100 million barrels in reserve )2 or the quality of the oil (light crude suitable for gasoline production..." @default.
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• W1997710539 date "1980-01-01" @default.
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• W1997710539 title "Alberta and Oil" @default.
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• W1997710539 doi "https://doi.org/10.1353/pcg.1980.0008" @default.
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