OILSANDS AFTER 50 YEARS
ORIGINS OF THE OILSANDS
Fifty years ago, Suncor Energy’s predecessor launched the Great Canadian Oil Sands project. The venture, the first to extract northern Alberta’s bitumen on an industrial scale, answered the question: Are the oilsands economically viable? The next 50 years raise different questions around the environment, sustainability and stewardship. Over the next six days, the Journal will look at the past, present and future of the oil deposits that made Canada an energy superpower, transformed the province demographically and economically and sparked environmental and Indigenous opposition.
1929
Dr. Karl A. Clark patents his system ■ for using hot water to separate bitumen from Athabasca’s oilsands.
1935
As part of his election platform, William Aberhart, the leader of Alberta’s first Social Credit government, suggests the “tarsands” should be utilized to build an extensive permanent road system. Four years later, citing high extraction and labour costs, the government abandons the idea.
1941
Oilsands pioneer Max Ball, president
■ of Abasand Oils Ltd., announces his company’s first diesel fuel sale from the Fort McMurray area. Early production of 80 barrels of oil daily soon increases to more than 200 barrels daily.
1942
Federal munitions minister C.D. Howe announces federal oil experts will examine the Athabasca tarsands area to determine the feasibility of undertaking development on a major scale.
1949
National Research Council scientists
■ conduct experiments to develop a new process of extracting oil. The “fluidized bed” process involves heating the tar sand to 500C while at the same time forcing air up from below through a grid. A small pilot plant is constructed to continue testing the process.
1950
The province undertakes an economic survey of the oilsands’ commercial feasibility. Premier Ernest Manning and his cabinet consider using underground atomic explosions to get the oil out of the Athabasca oilsands.
1952
Five Canadian oil companies begin ■ intensive exploration of the sands. The companies, each with leases covering nearly 50,000 acres (20,234 hectares), are Calvan Consolidated Oil and Gas, Asher Oil Company, Pacific Petroleums Ltd., New Continental Oil of Canada and Charter Oils.
1953
Great Canadian Oil Sands Ltd. is created, acquiring patents and leases in the Fort McMurray area.
1957
The Royalite Oil Company Ltd. announces ■ plans to build a processing plant and pipeline, part of a $50-million development program. A 10-company consortium, headed by Calvan Consolidated Oil & Gas, begin test-hole drilling on both sides of the Athabasca River.
1960
Great Canadian Oil Sands Ltd. considers the use of atomic energy for oilsands extraction, asking the Alberta Oil and Gas Conservation Board for permission, which is denied. The provincial and federal governments continue to debate the issue, and after years of discussion the idea is deemed unsafe. Shell Oil Company of Canada Ltd. indicates its intention to develop a portion of the oilsands.
1962
The Alberta Oil and Gas Conservation Board hears an application from Great Canadian Oil Sands Ltd., for the right to commercially produce oil with a $100-million project.
1964
Syncrude Canada Ltd. is incorporated, with Frank K. Spragins named president.
The provincial government gives Great Canadian Oil Sands Ltd. (now Suncor Energy Inc.) the go-ahead for oilsands development. Premier Ernest Manning officiates at a simple ceremony, calling it “a historic occasion” for the oil industry. For the first time, Albertans can invest up to $12,500 in the GCOS project. Debentures are to be convertible to common stock at the buyers’ wills, and will be 10-year securities returning six per cent per year. Calgary’s Dominion Bridge Co. Ltd. is awarded a $1.5-million contract to manufacture six steel drums for the GCOS project near Fort McMurray. The drums, weighing 175 tons each, will be a key phase of the oil production process.
1965
Fort McMurray experiences an economic boom. New construction includes a 40-room hotel, provincial government building, shopping centre and grocery store. Preliminary plans in the works for a new hospital. Dominion Day is celebrated with the opening of a new 1,500-foot bridge over the Athabasca River, the first land route to the area’s oilsands development. Great Canada Oil Sands Ltd. pays about half of the $3.6-million cost of the bridge, with the remainder paid by the Alberta government.
1966
Skilled Cuban exiles, escaping the Castro regime, are recruited by Great Canadian Oil Sands Ltd. to work at its Fort McMurray project. Dr. Karl A. Clark, the scientist who developed the hot water process for oilsands extraction, dies in Victoria at the age of 78.
1967
A milestone is reached on Sept. 30 when premier Ernest Manning officiates at the opening of the Canadian Oil Sands, the first largescale commercial production plant. Permitted rate of production is 45,000 barrels per day.
The Alberta Oil and Gas Conservation Board gives Denver-based Coronada Oil Company approval for an experimental separation project in the Cold Lake area. Another Alberta oil bonanza is predicted in the 3,000-square-mile area.
1968
Syncrude Canada Ltd. applies for a permit to construct a Mildred Lake plant capable of producing 80,000 barrels per day. After hearings, the Oil and Gas Conservation Board reject the $192-million plant, which is put on hold for a year.
1969
Great Canadian Oil Sands Ltd. reports a net loss of $8.67 million during the first three months of operation.
The population of Fort McMurray reaches 7,000.
Syncrude Canada Ltd. receives permission from the provincial government to go ahead with its oil extraction plant located near Fort McMurray. The plant will be Alberta’s second oilsands operation. Great Canadian Oil Sands Ltd. suffers a $25 million loss.