The Middle East has become an uncertain source of British oil supplies. That this has become evident even to the British government itself can be seen in the statement recently made by Hugh Gaitskell, the Chancellor of the Exchequer, that he might authorize British capital investment in Alberta oil development.

Mr. Gaitskell, worrying about whether to authorize scarce dollars now for British investment or to spend the dollars in the future on importing Canadian oil, said a good case had to exist before he would permit Britons to spend the capital. Albertans, who might be biased in their evaluation of the existing case, have known for some time the soundness of the latest oil investments and have often worried at the American predominance on the scene. That Britons have investigated the case and come up with encouraging estimates is evidenced by these remarks in the Evening Standard, London:

“It is therefore imperative that Britain takes steps to find an alternative source of oil. And it is in Alberta that lies the promise that can make us independent of the Mossadeghs.” [Mohammad Mossadegh, Iranian Premier who spearheaded oil nationalization]

The article goes on to describe how “the rich gush of oil” at Leduc has changed the whole basis of Canada’s economy and by 1955 should make us independent of American oil and free of much of the American dollar problem. The exploring and developing companies are Canadian and American, but not British, it points out. Further riches lie in the Athabaska tar sands region, where “test drillings have proved that one square mile contains the equivalent of ten months’ Persian oil output . . . (or enough) to meet the demands of Britain and the Commonwealth for more than three centuries.”

Development of the tar sands would require an expenditure of about $150,000,000 in plant, pipelines and equipment before the project would be an economic one. But, it concludes:

“Here is Britain’s opportunity. Alberta is eager to see British capital sharing in her natural wealth. If we do not move fast it will be too late . . . This is the moment for a new Disraeli with the imagination to see that some day the oil of Alberta may become the lifeblood of Britain and the Empire.”

All we can add to that is hearty approval. Albertans generally will be glad to see British capital moving into this field of activity, so long dominated by Americans. It isn’t that they object to the American investment as such, but the overwhelming amount of it, which can have unfortunate results in a country such as ours. A sizeable British investment in oil or tar sands would have a sort of counter-balancing effect on our economy.