In 1962, Alberta’s government granted a permit to Great Canadian Oil Sands, a company that would later evolve into Suncor Energy, to develop a commercial oil sands operation. This milestone marked the beginning of a significant chapter in Canada’s energy sector, with production commencing in 1967. However, the development of the oil sands was deeply intertwined with American markets, investment, and expertise from its inception.
While Canada’s oil sands represent one of the country's largest petroleum resources, industry experts emphasize that the role of the United States was instrumental in its commercial development. Paul Chastko, a University of Calgary scholar specializing in Canadian energy history, notes that it was the “combination of American markets, American investment and American desire” that made the oil sands a viable commercial enterprise.
American involvement in Alberta’s oil industry dates back to the early days of petroleum exploration. The Turner Valley oil field, once Canada’s largest, was a hub for entrepreneurs and workers from the United States, often characterized as a rough-and-tumble environment resembling "Little Chicago" or "Little New York," according to Chastko. One notable example was Sun Oil Company, a Philadelphia-based firm led by J. Howard Pew, an engineer and devout Christian who believed in the profitability of the oil sands despite skepticism from the Canadian government.
Pew forged a close relationship with then-Alberta Premier Ernest Manning, who shared his religious convictions. Their personal connection, which included vacationing and praying together, helped pave the way for Great Canadian Oil Sands to receive government approval to build its commercial operation. Subsequently, Sun Oil acquired a majority stake in the company.
Initial operations faced significant challenges; the plant experienced severe technical difficulties during its first winter, including freezing that halted production for months. Financially, the venture struggled, turning a profit only once in its first decade. Internally, the project earned the nickname “Pew’s folly.”
Despite these early setbacks, the persistence of Sun Oil and Great Canadian Oil Sands laid the foundation for the modern oil sands industry, which has grown into a cornerstone of Canada’s economy. Chastko asserts that without American involvement, the industry in its current form would not exist, calling it “literally” dependent on the United States.
The history of the oil sands underscores the broader pattern of cross-border interactions that have shaped Canada’s development. From early settlers and infrastructure builders to energy pioneers, the influence of individuals and capital moving between Canada and the United States has been an enduring feature of the nation’s growth.