November 7, 1941 (19th Parliament, 2nd Session)

LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Mr. HOWE:

Yes, it does affect the position in that its use will cut down the required number of tankers. I believe it saves about two tankers by shortening the distance from the source of the crude to the end of the pipeline. Of course, without this pipeline we would be in a most serious position indeed.
The following table gives Canada's inventory position as of October 1, 1941, as compared with October 1, 1940; following also is Canada's inventory position as at July 1, 1941, as compared with July 1, 1940, in barrels:
INVENTORY DIFFERENCES Between October 1st, 1940 and October 1st, 1941
Refinery inventories- Maritimes Quebec Ontario B.C. TotalCrude oil
265,262 588,927 476,404* * 58,138 435,923Unfinished products
460* 246,662 27,843 130,731* 143,314Aviation gasoline
53,487* 57,896* 58,498* 4,335* 174,216*Other gasoline
21,265 104,416 533,076 50,128* 608,629Light fuel
21,661* 102,720* 129,217 55,231 60,067Heavy fuel
33,172* 112,419 44,875 224,882 349,004177,747 891,808 200,109 153,057 1,422,721
Marketing inventories-
All gasoline
88,853 6,000* 348,164* 18,422 246,889*Light fuel
15,002* 1,865* 22,771* 2,145* 41,783*Heavy fuel
28,646* 18,461 84,636* 33,467* 128,288*Total deficiencies
222,952 902,404 255,462* 135,867 1,005,761
* Indicates increase in inventory; other figures are decreases.
INVENTORY DIFFERENCES Between July 1st, 1940, and July 1st, 1941
Refinery inventories- Maritimes Quebec Ontario B.C. TotalCrude oil
416 189,084 473,041* 98,838* 382,379*Unfinished products
13,832* 47,642 78,931 31,761* 80,980Aviation gasoline
80,878* 25,089* 22,163* 904* 129,034*Other gasoline
49,533 238,614 608,571 46,267* 850,451Light fuel
48,504* 84,828 34,653 18,536 89,513Heavy fuel
10,714* 176,431 73,824* 271,025 362,918103,979* 711,510 153,127 111,791 872,449
Marketing inventories-
All gasoline
56,000 30,000 456,241* 20,000* 390,241*Light fuel
15,567* 24,444* 85,456* 20,785 104,682*Heavy fuel
7,981* 23,219* 59,679 91,619* 63,140*Total deficiencies
71,527* 693,847 328,891* 20,957 314,386* Indicates increase in inventory; other figures are decreases. 14873-264 revised edition
The War-Oil Situation

One of the net results is that we are over in aviation gasoline. For obvious reasons we are using aviation gasoline at a much greater rate than ever before and we must have stocks in excess of stocks carried in previous years. For the period October 1, 1941, as compared with October 1, 1940, the refinery inventories
Maritimes
Quebec
Ontario
British Columbia
* Indicates decrease.
It is interesting to note that refinery inventories in the maritimes, Quebec, Ontario and British Columbia as of October 1, 1941, are 1,422,721 barrels less than they were on October 1, 1940, and that total refinery and marketing inventories in the same areas are 1,005,761 barrels less than they were on October 1, 1940, notwithstanding the fact that refineries in the three months ending October 1, 1941, received 1,129,688 barrels more than they received during the same three months of 1940.
While the shortage of supplies is more pronounced in the Quebec area-in fact in comparison the inventories are down 902,404 barrels-the fact remains that the Portland-Montreal pipeline will be in operation within a few days. While this pipeline will not be operating to capacity until next spring there should be no doubt about our being able to take care of the needed demands with the assistance of supplies from Ontario refineries.
I should like to go back for a moment to Canadian production. The production of crude petroleum in Alberta in the year 1940 amounted to approximately 8,700,000 barrels. This production fell substantially short of the consumption in the prairie provinces, and necessitated importations as follows:
Barrels
Crude oil, as such imported from the
United States 682,707
White products, as such, imported
from the United States 198,520
White products, brought up the lakes by lake tanker in the summer time and stored at the head of the lakes (refined in eastern Canada from imported crude) 842,622
In other words, the production in the west fell short of supplying the consumption to the end that refiners in the west imported 682,707 barrels of crude as such, and marketers and wholesalers imported in addition 1,041,142 barrels of white products.
The comsumption hereinbefore referred to relates to the provinces of Alberta, Saskatchewan and Manitoba, the western edge of the province of Ontario and the eastern fringe

are down 1,422,721 barrels and for the period July 1, 1941, as compared with July 1, 1940, we are down 872,449 barrels. There was a great drop in inventory after July 1. During the months of July, August and September, there were the following imports by Canadian refineries, exclusive of the prairies, in barrels:
Crude receipts, July, August, September
1940 1941 Increase1,651,374 1,930,055 278,6816,087,135 6,266,093 178,9584,895,970 5,756,710 860,7401,574,495 1,385,804 *188,69114,208,974 15,338,662 1,129,688
of the province of Bristish Columbia, all of which territory is within the economic orbit of Alberta production.
In October, 1940, all refineries in the west were required to make their nominations for the coming year in advance, that is, from 1st November, 1940, until 31st October, 1941. Further, the refineries were requested to build storage at their plants in order to take care of their requirements on a week to week basis. This they did. Further the producers responded to the call for new wells. Fortunately we had a healthy drilling programme. Fortunately we got some good wells. On 30th September, 1941, we had 167 producing wells. On September 30, 1940, we had 126. In the yearly period referred to, forty-one new wells were brought in, and since that time there have been one or two more. In the period January 1 to September 30, 1941, production in Turner Valley field, as the result of new wells and the day to day regular operation, shows an increase of 20-7 per cent over the same period of last year. From January 1 to September 30, 1940, the production amounted to
5,869,648 barrels, and from January to September, 1941-the same relative period-it amounted to 7,084,910 barrels. In the 1940 period, production averaged 21,422 barrels per day, and in the 1941 period it averaged 25,952 barrels per day. It would appear that we are assured a total production of 9,500,000 barrels this calendar year.
This year there have been importations of gasoline from the United States in the same manner as before. Substantial quantities of refined products have been sent up the lakes for distribution in Manitoba and further west. Having regard, however, to the increased production of crude, practically no crude imports have been in evidence this year.
We have had the largest exploratory programme this year in the history of the west. Many structures have been seismographed. There is no question that drilling in new areas will be in evidence next year. There is no doubt also that further new areas will be explored.
- i 3

The War-Oil Situation
We must bear in mind that an oil well is a depleting asset and that we must have new wells and we must find a new Turner Valley. Every effort has been put forward to find this new field.
Many do not realize the extent to which the war effort makes demands upon petroleum supplies.
It is estimated, in any event, the oil controller has been asked to cause refiners to provide for war uses at least 110,000,000 gallons of aviation gasoline over the next twelve months, more than one-tenth of our normal consumption of gasoline. The possibility of obtaining this aviation gasoline outside of Canada has been carefully surveyed and studied. Having regard to the demands on the United States by all countries at war, and the possibility of our not being able to obtain aviation gasoline in the event of any change in war conditions or a further crisis, it is absolutely necessary that we provide for our own aviation gasoline requirements. In
order to do this we first must take a cut for this purpose out of the crude that we refine. While we have not as yet taken a cut out of all of the crude produced in the west, it is quite likely that we will have to do so before a great while. After we take a cut for aviation gasoline, we then must provide for heavy and light fuel oil, our next if not equally important war demand. A careful estimate of the present market for fuel oil has been made. A survey has also been made as to ways and means to meet this demand. As you are aware, our industrial war effort, to say nothing about our requirements on the two coasts, depends upon an ample supply, particularly of heavy oil. When the market demand and the available supply is balanced, there is no surplus.
I shall now place on Hansard, if I may, the petroleum inventories of the various refining districts for different periods, showing the shortages that have been built up over the last several months, in barrels:
PETROLEUM INVENTORIES July 1st, 1940 and 1941
1940 Maritime
Crude oil 467,456
Unfinished 78,950
Aviation 7190
Other gas 332^409
Light fuel 121,126
Heavy fuel 278,251
Marketing 1,285,382
Gas 436,000
Light fuel 86,138
Heavy fuel 59,300
1,866,820
1941 '-
Crude oil 467,040
Unfinished 92,782
Aviation 88,068
Other gas 282,876
Light fuel 169,630
Heavy fuel 288,965
Marketing 1,389,361
Gas 380,000
Light fuel 101,705
Heavy fuel 67,281
1,938,347
Short
Crude oil 416
Unfinished -13,832
Aviation -80,878
Other gas 49.533
Light fuel -48,504
Heavy fuel -10,714
Marketing 103,979
Gas 56,000
Light fuel -15,567
Heavy fuel -7,981
14873-2641 -71,527
Quebec Ontario B.C. Total1,638,051 1,097,364 283,417 3,486,288593,705 672,688 188,323 1,533,666119,442 30,693 2,908 160,233926,987 1,293,646 184,545 2,737,587315,019 307.315 96,759 840,219582,577 192,171 359,869 1,412,8684,175,781 3,593,877 1,115,821 10,170,861601,000 85.845 1,200,000 159,000 2,481,845141,736 43,616 306.679 157,131 735,300218,032 233,655 364,722 875,7095,136,549 5,463,672 1,796,674 14,263,7151,448,967 1,570,405 382,255 3,868,667546,063 593,757 220,084 1,452,686144,531 52,856 3,812 289,267688,373 685.075 230,812 1,887,136230,191 272,662 78,223 750,706406,146 265,995 88,844 1,049,9503,464,271 3,440,750 1,004,030 9,298,412571,000 280,086 1,462,0001 179,000 2,872,086166,180 29.917 405A34J 136,346 839,982241,251 173,976 456,341 938,8494,442,702 5,792,563 1,775,717 13,949,329189,084 -473,041 -98,838 -382,37947,642 78,931 -31,761 80,980-25.089 -22,163 -904 -129,034238,614 608,571 -46.267 850,45184,828 34,653 18,536 89,513176,431 -73,824 271,025 362,918711,510 153.127 111,791 872,44930,000 -456,241 -20,000 -390,241-24,444 -85,456 20,785 -104,682-23,219 59,679 -91,619 -63,140693,847 -328, S91 20,957 314,386
41S8
The War-Oil Situation

Crude oil.. Unfinished. Aviation. . Other gas. Light fuel.. Heavy fuel
Marketing
Gas
Light fuel.
Heavy fuel
Crude oil.. Unfinished. Aviation. . Other gas.. Light fuel. Heavy fuel
Marketing
Gasoline. . .
Light fuel.
Heavy fuel
Short
Crude oil . Unfinished. Aviation. . Other gas.. Light fuel. Heavy fuel
Marketing
Gas
Light fuel. Heavy fuel
PETROLEUM INVENTORIES October 1, 1940 and 1941
Maritimes 512,481 118,655 7,282 165,528 95,233 283,607 Quebec 2,622,209 844,470 145,532 788,357 440,490 651,568 Ontario 1,231,887 657,861 45,435 1,101,483 485.517 349,246 B.C. 310,176 117,375 1,935 131,021 142,281 394,937 Total 4,696,753 1,718,361 200,184 2,186,389 1,163,521 1,679,3581,182,786 5,492,626 3,871,429 1,097,725 11,644,566420,853 451,000 1,418,0001 174,024 166,482 2,630,359100,998 287,490 555,731 16,972 159,850 1,121,04162,623 335,562 323,605 299,698 1,021,4881,767,260 6,566,678 6,359,761 1,723,755 16,417,454247,219 2,033,282 1,708,291 252,038 4,240,830119,115 597,808 630,018 248,106 1,595,04760,769 203,428 103,933 6,270 374,400144,263 683,941 568,407 181,149 1,577,760116,894 543,210 356,300 87,050 1,103,454316,779 539,149 304,371 170,055 1,330,3541,005,039 4,600,818 3,671,320 944,668 10,221,845332,000 457,000 1,595,0001 345,188 148,060 2,877,248116,000 289,355 560,644 34,830 161,995 1,162,82491,269 317,101 408,241 333,165 1,149,7761,544,308 5,664,274 6,615,223 1,587,888 15,411,693265,262 588,927 -476,404 58.138 435,923-460 246,662 27,843 -130,731 143,314-53,487 -57.896 -58,498 -4,335 -174,21621,265 104,410 533,076 -50,128 608,629-21,661 -102,720 129,217 55,231 60,067-33,172 112,419 44,875 224,882 349,004177,747 891,808 200,109 153,057 1,422,72188,853 -6,000 -348.164 18,422 -246,889-15,002 -1,865 -22,771 -2,145 -41,783-28,646 18,461 84,636 -33,467 -128,288222,952 902,404 -255,462 135,867 1,005,761
I now come to the advertisement of the Joy Oil company.

Topic:   THE WAR
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