OIL REGULATION

Waikato Times, Volume 124, Issue 20740, 25 February 1939, Page 14 (Supplement)

OIL REGULATION

CANADA’S HIGH WASTAGE PIPE LINE PROPOSAL (Canadian Press Letter) EDMONTON, Jan. 5 Ways of halting wastage in Alberta’s Turner Valley oilfield are sought by a regulatory board set up by the provincial legislature. The field, southwest of Calgary, in the Rocky Mountain foothills, has an estimated potential production of 50.000 barrels daily, but with an eye to market liability present maximum output is set at 12.500. Interest, in Turner Valley has been expressed by the United Kingdom government, and there was some discussion of a 1000-mile pipeline to carry the oil lo the Pacific coast at Vancouver, for Empire export and possible naval refuelling. Such a line would cost about £3.200,000. There is no immediate prospect of the project taking shape. Meanwhile, the Alberta Petroleum

Meanwhile, the Alberta Petroleum and Natural Cras Conservation Board studies the problem of waste. Its chairman, W. F. Knodc. a United States Petroleum engineer, estimates that £15.000.000 has been lost since 1925 through crude oil seeping into areas from which it rannot be recovered. Along with the oil, £3.400.000 in naphtha and £9,000.000 in natural gas are said to have been lost. A royal commission is also conducting an inquiry to check on production costs, compute fair prices and review marketing phases of the industry. The Turner Valley field, 17 miles long by two miles wide, is dotted with about 75 wells producing crude oil an.d naphtha from which gasoline is extracted. Dividend payments by j oil companies in 193*8 totalled more than £400,000.