The oil was skyrocketing. At the time the

The national energy policy was an unsuccessful energy policy created in 1980 by the Canadian government and collapsed in 1985. It was created under the liberal government that Prime Minister Pierre Trudeau was governing. The NEP had three main objectives that they hoped to complete. To reduce Canada’s dependency to foreign oil by encouraging greater self sufficiency in gathering domestic supplies, to redistribute oil wealth via taxes and resource royalties to Canada’s government as well as consumers, and to grasp greater control over of the oil industry. The program sparked an outcry in the west specifically in Alberta because of an export tax added with the NEP. This was also because many NEP supporters were speculating that Ottawa wanted to secure the national oil supplies at a time of global political and economic confusion. In Alberta, the NEP was opposed by a ratio of 5-1. They considered the NEP one of the most unfair federal policies. Scholars estimated that the program cost the Alberta government about $50-100 billion The government of Alberta under Progressive Conservative premier Peter Lougheed responded with an attempt to cut Alberta oil production by delaying the research and development of the oil sands. The controversy in Alberta was a factor to the collapse of the NEP.The NEP was a very smart political move at the time. In 1970s there was a great recession following two major oil crises, the Bank of Canada reported that economic problems were magnified and the price of oil was skyrocketing. At the time the NEP was justified with evidence and proof but here are uncontrolled variables like price shocks, the general availability of oil and the location of the oil and they are really why the NEP was not as effective as thought. This was critical to the success of the NEP. The effect of all of these as a collective was one of the main reason the NEP collapsed. The NEP did not collapse instantly. In fact the process of removing it was tedious and long. In 1981, even before the oil prices had started falling, Ottawa and the Alberta government signed a new agreement that changed the NEP revenue sharing provisions as well as remove the hated export tax on Alberta oil completely. The NEP was then fully dismantled by the Progressive Conservative government of Prime Minister Brian Mulroney after an election in 1984. the NEP was a well constructed but poorly planned program that could have been successful in other circumstances. A plan such as this would not succeed in the present. In conclusion, due to the uprise in Alberta combined with the stock price spikes, world oil supply, and mix of other uncontrolled variables, the program was dismantled in 1984.


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