Oil and Gas Develops

It was not too long after the first wave of settlers arrived in the Peace country that successful drilling for oil began. In 1914, the Tar Island Oil Company struck oil along the Peace River close to Peace River Crossing. A year later, the Peace River Oil Company drilled on the other side of what became the town of Peace River to also discover oil at about 500 feet. When both companies drilled down to about 1,500 feet they struck heavy flows of water. There were other discoveries of oil in these early years.

The oil sands in the Peace-Athabasca region confirmed that there were significant oil reserves in the Peace River country. Fort McMurray became the centre of oil sands developments, but there continues to be untapped resources in the Peace-Athabasca area.

There was ongoing oil and gas exploration during the Second World War in the Peace River country with drilling at Commotion Creek in 1940-41.

Ameranda Petroleum began seismic testing and drilling between DeBolt and Valleyview in the late 1940s. Drilling at Sturgeon Lake in 1953 revealed the first significant discovery, leading to the development and long-term production of the North Sturgeon and South Sturgeon oil fields.

In 1953, Valleyview was transformed rapidly as an oil boom was created with the discovery nearby. The town’s population grew from about 100 people to over 500 as oil workers and service personnel arrived.

The oil from Valleyview was taken by truck to High Prairie where the railroad tracks ended to load the oil onto train cars. When a shorter road was built in 1954 between Valleyview and Whitecourt, the oil was shipped by truck to Edmonton. This continued to be the way the oil was transported to Edmonton until the Peace River Oil Pipeline was built. Construction of a pipeline began in December 1954 to connect the Sturgeon Lake fields to Iosegun Lake just north of Fox Creek.

In recent years the oil and gas industry has changed its focus to natural gas production. In the past, natural gas was burned off as oil was the product the industry wanted. There are significant reserves of natural gas in the Peace River country. In 1948, there were some gas wells producing in the Pouce Coupe area. Dawson Creek was the first community in British Columbia to use natural gas for heating purposes beginning in 1950.

There has been a long history in the Peace River country of people in the rural areas organizing gas co-operatives. These co-operatives tap a local well using small pipelines to heat their homes and buildings.

The oil and gas industry has grown to be one of the most important industries in the Peace country.

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