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1857 – Commercial Oil Production

Geology and time have created large deposits of crude oil in various parts of Canada. Until the mid 1800s, this vast untapped wealth lay mostly hidden below the surface of the earth. Some oil seeped naturally to the earth’s surface and formed shallow pools. These oil seeps had long been known about and used for medicinal purposes, to caulk boats and buildings and to lubricate machinery. But they were not commonly used as a fuel, as the oil had foul-smelling fumes. Better refining techniques and surging demand for kerosene and lubricants in the late 19th century changed this. Canada would be thrust to the forefront of commercial oil production when James Williams drilled the first oil well in North America in 1857.

The first commercial oil well was situated in the southwestern Ontario town of Oil Springs. Williams acquired some property that was known to have oil gum beds. He dug through the gum beds in search of the source of the oily deposits, and discovered crude oil. This first oil well was simply a hole in the ground with oil rising up close to the surface. With the use of hand pumps, the oil was extracted at a rate of 37 barrels of oil per day. Williams built and operated a local distillery from which he refined and sold kerosene. Ontario’s first oil boom—reflected in town names such as Petrolia—paralleled a larger oil boom in northern Pennsylvania, where energy dynasties were beginning to emerge.

The timing of this discovery could not have been better. Its commercial potential was enormous, and Williams realized it. Not only was the kerosene lamp becoming more popular, but traditional sources of lamp fuel such as whale oil were becoming scarce. A new line of the Great Western Railway was completed nearby, providing a means to transport this commodity. As news of his discovery spread, prospectors from both Canada and the United States flooded into Oil Springs. The value of land jumped, and an oil boom was under way.

By 1861, approximately 400 wells were producing oil in the area. Oil Springs benefited from this new-found wealth. People became rich from oil, and this provided Oil Springs with the first paved street in Canada. The village’s main street was also lit at night by oil lamps. In the early 1860s, so much oil was being produced that 20 refineries built in the area could not handle the volume. Crude oil was being shipped to other cities in Canada and the United States, and even as far away as Great Britain.

The mid-19th century boom in oil production in the Great Lakes region gave the oil industry its enduring standard of measure—the barrel, 42 gallons—just the right quantity for easy, horse-drawn transport.

As quickly as the boom cycle began, the bust followed. By 1865, increased domestic and American production had severely deflated the price of a barrel of oil. Production shifted to nearby Petrolia, where more and more oil was being discovered.

However short-lived the Oil Springs boom was, it left an indelible mark on the oil exploration and refining industry. Those first commercially viable wells left a legacy of knowledge to the oil workers who pioneered several oil production and refining techniques. Drillers from Oil Springs used their knowledge to explore and develop oil fields around the world. In the 1890s, American companies like Standard Oil bought into the Canadian oil patch, taking control of such companies as Imperial Oil.

From these early days until 1946, domestic oil production accounted for 10 percent of domestic consumption. However, with the discovery of oil in Leduc, Alberta in 1947 the modern era of production in Canada began and shifted the focus westward.

The discovery in Oil Springs began a cycle of exploration, production and innovation still unfolding in the Canadian industry. To commemorate its place in history, a museum was built in Oil Springs near the site of that first well dug by James Williams, marking the beginning of commercial oil production in North America.

Links

Black Gold: Canada’s Oil Heritage
Source: Government of Canada
http://collections.ic.gc.ca/blackgold/frames.html

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