Lethbridge Herald, The (Newspaper) - August 6, 1974, Lethbridge, Alberta
Tuesday, August LETHBRIDGE HERALD-11 Here's one reason why Canadians were kept warm last winter. 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 in- creased to maximum our capacity to make fuel oil in order to supply the looming shortage in Eastern Canada. We increased our fuel oil stor- age 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 would 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 illus- trate the situation. The fact is, the oil industry reacted in this fashion, to avert what was shap- ing up as a severe fuel oil shortage for many Canadians. Right now we are thinking about future winters why we decided to proceed now with our new 400 million dollar refinery in On- tario. Without it central Canada would soon be seriously short of refining capacity. This 400 mil- lion dollar investment is equal to more than seven times our 1973 earnings! When an oil com- pany earns a profit, that's how most of it is used "plowed back" into the business to make sure that you continue to be well served. The oil industry in Canada was born and raised in an environment of competitive enter- prise, and the record shows that we have done a good job. The question that bothers us, and we hope it 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 future needs, we must grow. To do that we need adequate profits which provide a fair return on in- vestment. The oil industry lives, or dies, on these economic realities because they in turn attract 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 industry7 has come this far on its own. We know that in the future we can continue to meet Canada's energy needs.. .but we're going to need understanding from co-opera- tion from our governments. Texaco Canada Limited We're working to keep yourlrust.