When the average Canadian is asked to think about Alberta, odds are that a few particular things spring into their minds. Among these are surely cowboys, steaks, the Calgary Stampede, Banff National Park, dusty plains beset with dinosaur bones, and, of course, oil derricks and bitumen fields pumping out fossil fuels. All of these images make perfect sense considering the province’s well-established reputation, but today I intend to focus on the last item on that list. In fact, along with the Persian Gulf and Western Siberia, Alberta is one of the major oil-producing regions found in the world.
But how did this come to be?
As a career executive in the Western Canadian energy sector, I find the history of oil and gas development to be fascinating—specifically how it pertains to my home province of Alberta. I’ve researched this topic extensively, and I thought this blog post would be an excellent forum from which to share my findings.
The Early Modern Era
In the years after Alberta became a province in 1905, the region already showed signs of its future with the discovery of naphtha gasoline in Turner Valley in 1914. This early finding forecasted the province's rich energy potential, but until then, the province’s economy was totally dominated by farming and ranching. In the interwar years, Alberta was beset by economic hardships like the Great Depression, which slowed development significantly, and environmental challenges such as the Dust Bowl, which took a major toll on agrarian and livestock-based businesses. During the mid-and late-1930s, government infrastructure programs helped Albertans fend off financial disaster, right the economy somewhat, and provide a network of new roads, dams, and bridges where none (or at least, very few) had existed before. These would later come in handy to expedite the extraction and transportation of fossil fuels once significant caches were discovered.
After World War II
The aftermath of World War II brought unprecedented changes to Alberta's economy, catalyzed by the discovery of oil at Leduc No. 1. This event sparked an economic renaissance, transforming Alberta from a primarily agrarian province into a major player in global oil production. The ensuing oil boom fueled rapid urbanization, infrastructure development, and population growth, particularly in cities like Calgary and Edmonton. Alberta's emergence as a key energy producer reshaped its economic trajectory and established its reputation as Canada's energy powerhouse.
From the 1950s onward, Alberta experienced exponential growth in population and economic prosperity, largely driven by its booming oil industry. This period saw the establishment of key infrastructure projects such as the Trans Mountain Pipeline and the development of new technologies like hydraulic fracturing (commonly known as ‘fracking’) in the 1950s. Alberta's economy became increasingly diversified, attracting investment and fostering the growth of sectors beyond oil, laying the foundation for its modern economic landscape.
The Recent Past and Present Day
In recent decades, Alberta has had to navigate fluctuations in global oil markets caused by waxing and waning global demand (see the industrialization of the developing world and the COVID-19 pandemic), treaties with other nations (see NAFTA and USMCA), and geopolitical factors (see the Global War on Terror and the emergence of the BRICS nation bloc). The province has also faced challenges connected with its oil production such as environmental effects like wildfires and acid rain, as well as regulatory changes imposed by agencies of the federal government.
Despite these issues, Alberta's energy resources play a crucial role in strengthening Canada's economy, substantially contributing to both national energy security and international energy markets. And as politicians from the province’s political parties continue to argue over how best to use the revenue generated by its oil and gas reserves, the private sector consistently posts profits and makes giant leaps forward in technological innovation like steam-assisted gravity drainage (SAGD) for oil sands extraction—a well-established dynamic that I predict will remain in place for the foreseeable future.
I hope this succinct history of how the oil and gas industry has shaped the development of Alberta has been informative, and just as entertaining for you to read as it was fun for me to write!
