The oil and gas industry has dominated Alberta’s economy since the dawn of time.
Okay… that’s an exaggeration.
But still, oil and gas have defined us for a long time, since the first oil well in Alberta was drilled in Waterton in 1902.
When John Lineham and his company struck oil, it ignited a passion for petroleum exploration across the province. This led to some of Canadian history’s most iconic oil discoveries, including Leduc No. 1.
This historic day for Alberta set our booming oil economy into motion. But Leduc No. 1 wasn’t easy. It took many failures and millions of dollars.
Imperial Oil drilled 133 dry holes leading up to its Leduc discovery on February 13, 1947. On that fateful day, the public came to watch, but the machinery broke down.
As the crew struggled to fix the machinery, onlookers began to leave, fearing another disappointment. But the 500 or so people who stuck around, even through the bitter February cold, witnessed one of the most iconic moments in Alberta’s history.
That moment would lead Alberta to become Canada’s largest oil and natural gas producer. The story of Leduc No. 1 is a testament to the grit and fortitude of the people who make up our great province.
Imperial Oil may be the face of Leduc No. 1, but the discovery was made by hard-working, tried and true Albertans like Vern “Dry Hole” Hunter.
Born in Nanton, Hunter began working as a roughneck, a manual labourer, on the Turney Valley drilling rigs.
In 1934, Hunter made ten dollars for every twelve-hour shift. Hunter got no sick leave, days off, or paid vacation. In 1940, he was promoted to tool push, someone who supervises drilling operations for Imperial Oil.
Hunter drilled so many unproductive wells that he became known as “Dry Hole,” but his bad luck turned around when he was assigned to Leduc No. 1.
A New Historic Find
The Leduc geological formation that once pumped liquid gold is also home to one of the world’s largest lithium deposits. In total, Canada houses over 680,000 tonnes of lithium reserves, the sixth-most of any country.
Lithium is a soft, silver-white alkali metal used for various things, like medicines, alloys, ceramics, and more.
One of the most common applications of lithium is in making rechargeable batteries for electronics, such as mobile phones, laptops, and digital cameras.
However, there has been little interest in developing the lithium deposit in the Leduc formation until now. Earlier this month, E3 Lithium, a Calgary-based lithium company, announced the opening of the province’s first lithium extraction pilot project east of Olds.
According to E3’s CEO Chris Doornbos, the company’s project marks the start of a new era for Alberta’s traditionally oil and gas-dominated economy.
“Without forsaking our past, the lithium industry opens up a whole new industry, using our existing skill set,” Doornbos told BNN Bloomberg.
Australia, Chile, and China are the world’s biggest lithium producers, but Alberta could put Canada on the map.
What’s so great about lithium, anyway?
Aside from household electronics, lithium is used to make lithium batteries for electric vehicles. As demand for electric cars continues to grow, so does lithium demand.
Not convinced? The global demand for lithium batteries is expected to increase five-fold by 2030. Possessing about 16 million tonnes of lithium resources already, E3 is a major player in the market.
The company is also credited for its made-in-Alberta lithium extraction technology that extracts the lithium that occurs naturally in oilfield brines during oil exploration and extraction.
Using this technology, E3 plans to open a full-scale commercial plant in late 2026, pumping out 150,000 tonnes per year of battery-grade lithium that can be sold directly to battery producers and electric vehicle companies.
Doornbos claims the extraction process isn’t technically different from oil and gas extraction. That said, E3 will need the skills and experience of Alberta’s oil and gas workers, who already know the industry inside and outside.
While E3 is the first lithium company to get up and running, several other projects are in the planning phase, looking to extract lithium at locations around our province.
The federal government announced a 30 percent tax credit for critical mineral exploration projects like E3’s pilot project.
“Increased global demand for electric vehicles and battery storage is going to lead to Alberta having another resource – not just oil, not just natural gas – but another resource to sell to the world,” said Brian Jean, Alberta’s Minister of Energy and Minerals.
The grit and ingenuity of our province’s people turned black sludge into liquid gold. That same talent can be used to turn one of the world’s largest lithium reserves into a figurative gold mine.
And if Alberta overcomes the hiccup of the moratorium and embraces renewables, then we can once again be the powerhouse of Canada.
Even more so, if we support exciting new geothermal technologies, which use abandoned wells to create energy from the heat of the earth.
Let’s get to it and make Vern “Dry Hole” Hunter proud!
