Technology
is the Key to Unlocking
Resources
Remarks by Hon. David
Kilgour, M.P. Edmonton Southeast,
Secretary of State (Latin
America & Africa)
to the Edmonton Oilfield
Technology Society’s
Rig Raising Event
Ellerslie, Edmonton, June
11, 1999
Today, we celebrate the
raising of a drilling rig
that will be a major addition
to the Outdoor Oilfield
Equipment Museum. It is
a pleasure to bring greetings
from the federal government.
Not only are we celebrating
a drilling rig, but also
the history of an industry
that has been at the heart
of Alberta’s development.
Fifty years ago, very close
to here, the oil discovery
at Leduc began the era in
Alberta’s economic
history which many of us
still rely on today.
In 1947, there were about
750,000 residents in each
of our Prairie provinces.
Probably the main reason
that our province today
has three times the population
of each of the other two
lies in the spin-offs from
Leduc #1.
Given the role that oil
and gas have played here
in the last half century,
no one can understand Alberta
without knowing our petroleum
industry. Your efforts to
preserve this vital part
of our history are much
appreciated. Our province
is a comparatively new society,
but we have an important
history.
You are all well aware
of the economic importance
of the petroleum industry
to Alberta. It’s perhaps
worth repeating a few figures
to remind ourselves, and
to inform others about why
we Albertans have such pride
in our petroleum heritage.
The combined oil and gas
industries directly or indirectly
today employ 215,000 Albertans.
This includes 165,000 employed
in such upstream activities
as exploration, production,
and development; 50,000
in downstream activities
like wholesale marketing,
retail gasoline stations,
petrochemicals and pipeline
transportation.
Crude oil and natural gas
make up more than half of
Alberta’s exports.
These have more than doubled
since 1991. Without the
petroleum industry, Canada
would have had a negative
trade balance in 1997 of
almost $16 billion.
The spin-off benefits of
the industry are even greater.
Petroleum injects billions
of dollars into Alberta’s
economy in capital expenditures,
royalties and wages.
The resources themselves
are only part of the equation.
The other part – and
the one the Edmonton Oilfield
Technical Society celebrates
– is technology. Without
the technology to find and
extract the resources they
would remain in the ground
and be worthless.
Alberta’s petroleum
technology is internationally
respected. In Latin America,
Africa and the Caribbean,
I often meet business people
and officials trying to
develop the petroleum and
gas sectors. I also meet
Albertans selling their
expertise in the Andean
countries of South America
or the oil fields of western
Africa. Our technological
know-how is a major export
that should never be overlooked
when assessing the benefits
of this industry to Alberta.
A neighbour of mine in Mill
Woods used to work every
three weeks in the oil fields
of Yemen.
Alberta’s oil sands
represent the technological
challenge that lies ahead.
They contain more than 300
billion barrels of potentially
recoverable deposits –
roughly comparable to the
proven reserves of Saudi
Arabia. The technology to
extract this resource, of
course, is already in operation,
though costs are higher
than those of conventional
production. I’m told
that current research may
reduce per unit costs by
as much as 25 per cent over
the next decade. Technology
then is the key to unlocking
this enormous potential.
Your work as a society
helps to raise awareness
among Albertans of the vital
role technology plays in
the petroleum sector. The
raising of this historic
rig is a tribute to the
past 50 years, as well as
to the exciting years that
lie ahead. Heartiest congratulations
and thanks to all who helped
make it happen.
Thank you.
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