History and Introduction

The Oil & Gas Industry is of considerable economic value to Drumheller's economy.

The history of Oil and Gas in the Drumheller area began in 1950, when oil was discovered in the Drumheller field by Naco Drumheller No. 2 Wildcat. Two Nisku pools (Devonian) and a Basil Quartz pool in the lower cretaceous.

In 1952, a discovery well working in the west Drumheller field. Mazel Drumheller No. 1 was completed with the initial production of 1,200 barrels per day. The well was drilled by a relatively small rig that was a portable unit on a trailer. Financing of the well came from funds raised by local citizens of the Valley. The story has it that when one of the original investors in the West Drumheller discovery well learned of "Oil being struck" he went to Drumheller and bought a case of whiskey to take out to the drilling location for celebration purposes. On his way out, he was stopped by the local R.C.M.P. who took his refreshments away. This did not stop the celebration as the investor promptly went back to the liquor store and purchased another case of whiskey, which did make it to the intended destination to celebrate the "Discovery Well" success.

At about the same time as the Mazel No. 1 success another locally financed group, the Stockton Syndicate, drilled two successful gas wells about five miles south of the town. These wells were put into use for heating in Drumheller in the fall of 1954.

In the year following Mazel No. 1, numerous wells were drilled and production at the end of 1953 had risen to 6,000 barrels per day.

Since there were no pipelines, or gathering systems in place, the oil had to be trucked to Calgary. As the roads in the district were very poor, the first consideration was to grade and gravel roads. The Oil companies did not hesitate to put up a considerable amount of money to assist the municipalities in this work.

Trucking to Calgary soon became unfeasible, so a tank car terminal was established on the railroad passing through Munson.

Several months later a pipeline was completed to Big Valley and Stettler to take delivery of the produced oil. Everyone was happy to see the pipeline completed as the trucks had to travel at a fairly fast pace to make a profit, and many a broken windshield and headlight bore testimony to the danger of having trucks constantly on the graveled roads. The roads were improving as more money was given for road improvements, and life for the oilfield worker was a little easier. Local residents were a bit reserved at first as the tales they had heard of the early oilfield crews, were not overly flattering. However it wasn't long before many of the younger men of the district were working on the rigs or in some aspect of production.

Some resentment was felt at first when the land was distributed to drill the wells, but it was soon discovered that things were not at all as expected. The compensation the land owner received was welcomed as additional revenue without too much inconvenience. This co-operation between land owner and the Oil Companies still exists today.

Today there are over 1500 wells and numerous gas plants in the area around Drumheller. Some of the companies working in the area are:

Bearspaw Petroleum Ltd.

Visit their sites to learn more about the industry.

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