Offshore drilling in Lake Erie decreased 25% to 95 wells during 1981 compared with 126 in 1980. Offshore exploratory drilling in Lake Erie decreased 62% with 19 wells completed. Onshore, 5 exploratory wells were drilled in Quebec, 1 in Nova Scotia, and 31 in Ontario. An aggressive seismic exploration program was conducted in parts of Nova Scotia, Prince Edward Island, and New Brunswick. Production of oil and gas in New Brunswick declined by 47% and 9%, respectively. In Ontario, oil production decreased 3%, whereas gas production decreased 9%. Gas production in Quebec increased by 20% over that in 1980.--Modified journal abstract.