The town of Fort McMurray lies at the confluence of Clearwater River and Athabasca River. Its somewhat stormy development since the 1960s is due in no small measure to the existence of giant stocks of oil for many miles around.
In 1971 the population of this remote town was only 7000; now it has increased
drastically. Much of the population are between 20 and 40 years of age.
The history of Fort McMurray begins in the last quarter of the 18th c., when the North West Company set up a trading post here in the fur-rich north of Alberta. In the 19th c. it developed into the main supply center along the fur-route from the northern Saskatchewan River to Lake Athabasca. In 1883 regular steamship services were extended as far as this, and a start could be made in exploiting the rich natural resources of this vast region. The railroad connection laid in 1925 was an important factor in its continued development; it was now possible to transport timber and mineral resources at an economic cost.
The presence of oil beneath the sand was mentioned in reports by the explorers Peter Pond and Alexander Mackenzie back in the 18th c. Indians and fur-hunters were in the habit of mixing the crude tar with resin to caulk their canoes. In the early 20th c. a start was made on using the sand for surfacing Alberta's roads. Attempts to extract crude oil were initially unsuccessful, but during the Second World War the Abasand Oils Project, 8 km (5 mi.) north of Fort McMurray, succeeded in producing about 200 barrels a day. It was not until the 1960s that resources were really tapped to an economic degree, leading finally to an oil-boom in Fort McMurray.
The oil is pumped to Edmonton through a pipeline.