This discussion of the Canadian petroleum industry for the year 1966 includes production statistics and operating procedures, reserve estimates, exploration and development, transportation, refining, and marketing. Most sectors of the Canadian industry had an excellent year in 1966, featured by continued exploration and development successes in the Rainbow Lake-Zama Lake region of northwestern Alberta and a record value of production that exceeded $900 million for all liquid hydrocarbons. Production of crude oil and natural gas liquids exceeded one million bopd. Crude oil producers supplied 58% of the total crude oil requirements for Canadian refineries. Oil reserves increased due primarily to the application of secondary recovery and the discovery of new reserves. Total pipeline construction decreased, and there was a small increase in refinery capacity.