Lethbridge Herald (Newspaper) - August 6, 1974, Lethbridge, Alberta
Tuesday, August 6,1974-THE LETHBRIDGE HERALD-11 liiiiiilSiliii Here's one reason why Canadians were kept warm lastwinten An important reason for this happy result was that the oil industry was able to react quickly to sudden and drastic changes in the supplies of heating oil in parts of Canada. As a case in point, Texaco promptly increased to maximum, our capacity to make fuel oil in order to supply the looming shortage in Eastern Canada. We increased our fuel oil storage capacity at Halifax. Then we chartered extra tankers to move crude oil into the Montreal area through the seaway. 35 jumbo tank cars were added to improve distribution of products in Eastern Canada. And to further make sure that sufficient supplies wouki be available, we shipped crude oil from Vancouver through the Panama Canal to our eastern Canadian refineries. Don't think for a moment that the above example is intended to create the impression that Texaco alone averted what could have been a crisis. We have used our own experience to illustrate the simation. The fact is, the oil industry reacted in this fashion, to avert what was shaping up as a severe fuel oil shortage for many Canadians. Right now we are thinking about fiiture winters - that's why we decided to proceed now with' our new 400 million dollar refinery in Ontario. Without it central Canada would soon be seriously short of refining capacity. This 400 million dollar investment is equal to more than seven times our 1973 earnings! When an oil company earns a profit, that's how most of it is used -it's "plowed back" into the business to make sure that you continue to be well served. The oil industry in Canada was bom and raised in an environment of competitive enter-prisey and the record shows that we have done a good job. The question that bothers us, and we hopeik concerns you too, is that we need this kind of 'no-meddling' environment to continue to grow. Because if we're going to meet Canada's flimre needs, we must grow. To do that we need adequate profits which provide a fair remrn on investment. The oil industry lives, or dies, on tliese-economic realities because they in mrn attraa the enormous amounts of private 'risk' capital needed for exploration and development. Today these needs are greater than ever, and without this type of investment capital, Canadians will risk lack of development to provide their future energy needs. The oil industry has come this far on its own. We know that in the fiiture we can continue to meet Canada's energy needs.. .but we're going to need understanding from you-and co-operation from our governments. lexaco Canada limited WeTe working to keep yourlrust.