The 1979 oil discovery that could change St. John's

What would become known as the Hibernia oil field was still a tantalizing possibility in October 1979.

City docks were already busier with exploration underway

Oil discovery could change St. John's

45 years ago
Duration 1:42
In 1979, an oil field under the Atlantic could yield serious benefits for Newfoundland.

It looked as if the city of St. John's had a bright future.

"It's because of the oil discoveries off the coast of Newfoundland," said George McLean, host of CBC's The National, on Oct. 20, 1979.

Jobs and money were both flowing in the province, as reporter John McQuaker discovered.

"The thought of oil, and the prosperity it could bring, is on the mind of everybody," he said.

700 jobs already

The city of St. John's would become a boom town with the discovery of commercial volumes of oil, said reporter John McQuaker. (The National/CBC Archives)

According to the Globe and Mail, five oil companies were searching for oil off the coast of Newfoundland in the summer of 1979.

"Since the beginning of exploratory drilling off Newfoundland and Labrador in 1965, the companies have sunk 57 wells and spent about $300 million," the paper said.

A month later, it reported that Standard Oil had "significantly" improved its commercial prospects by deepening a well called Hibernia.

The provincial government estimated that $50 million had been spent on goods and services, much of it in St. John's.

About 700 people were directly employed in the offshore oil industry by companies like Harvey's Offshore.

"Harvey owns much of the available dock and warehousing in the harbour," said McQuaker, as the camera showed workers moving equipment with a crane. "[The company] has contracts to service many of the supply boats that operate out of St. John's."

'We've made some money' 

"We've had a lot of employment opportunities and of course we've made some money," said Stu Peters of Crosbie Enterprises, a company owned by the brother of the federal finance minister. (The National/CBC Archives)

One of the St. John's companies already benefiting from the search for oil was Crosbie Offshore — owned by a brother to federal finance minister John Crosbie — with contracts for supply boats, catering and crew.

"It's been very advantageous [for us] this year," said spokesman Stu Peters. "We've had a lot of employment opportunities and, of course, we've made some money."

Most of the oil industry jobs were short-term positions.

"If exploration is intensified, as expected over the next couple of years, and if oil is found in commercial volume, then St. John's will be a boomtown," said McQuaker.