Energy Policy in Canada


Energy policy in Canada, focused on the 70s and 80s.
Mind Map by rachlev32, updated more than 1 year ago
Created by rachlev32 over 8 years ago

Resource summary

Energy Policy in Canada
  1. Nationalism
    1. Trudeau (Liberal 1968-1979, 1980-1984)
      1. Dependency theorist: wanted to free country from foreign economic control of US multinationals
        1. Self-suffiency
          1. Minority Liberal gov
            1. Depended on NDP support
              1. Created Petro-Canada (an oil crown corporation)
            2. National Energy program 1980-1985
              1. 2 price oil system
                1. Export tax
                  1. Subsidies for domestic consumption
                  2. Results in first federal deficit (1974)
                    1. To protect Canadian oil industries from international shocks/ influence
                      1. Assumes: rising prices, rising need for exports and that national is better
                        1. Eventually exchanged for more modest policy, since deficit --> recession. Also, increase in production from subsidies was not successful bc of international oil glut.
                          1. Canadian Petroleum Association and Independent Petroleum Association lobbied against NEP
                        2. Foreign Investment Review Agency
                          1. To ensure foreign acquisition and establishment of businesses was beneficial to CA
                        3. Nationalists feared without fed involvement, the energy sector would become an oligopoly-dominated cartel
                        4. Provincialism
                          1. Central Provinces
                            1. Ontario, Quebec
                              1. Conflict between these two: Ontario is dominant and more industrialized with better natural advantages
                            2. Peripheral provinces
                              1. Alberta
                                1. Manitoba, Saskatchewan, British Columbia, PEI, New Brunswick, Nova Scotia, Newfoundland and Labrador
                                2. Provincial vs Federal conflict
                                  1. Periphery felt that government policies favoured central provinces
                                    1. This was politically necessary since these provinces had the highest populations
                                    2. Fed tried to foster national cohesion
                                      1. Encouraged spread of (and assimilation into) metropolitan centers, as opposed to compromising and limiting the power of the centers
                                      2. Lougheed -Premier of Alberta 1971-1985
                                        1. Disagreed with NEP, wanted provinces to have more power over their own resources
                                          1. Wanted American investment
                                            1. Argued that Ottawa was unwilling to compromise. Alberta gov encouraged development of technical skill and capacity, and advancements in oil sector. Fed interference stopped all this
                                            2. Taxation of oil
                                              1. Created disincentive to work
                                                1. Main cause of conflict
                                                2. Jurisdiction
                                                  1. BNA 109: gives control of land and natural resources to provinces
                                                    1. Changes to Constitution: gives overriding responsibilities to fed regarding interprovincial and international trade, gives fed responsibility to stimulate industry in name of national development
                                                  2. Regional differences
                                                    1. 3 areas of conflict
                                                      1. Territorial
                                                        1. Different regions had different natural advantages
                                                        2. Economic
                                                          1. Peripheries depended on subsidies and equalization payments
                                                            1. Central province economies were diversified
                                                              1. Peripheral economies were resource-based
                                                              2. Ethno-cultural co-existance
                                                                1. Conflict between Franco and anglo-canadians
                                                          2. General info
                                                            1. Prime Ministers
                                                              1. 1957-1963 Diefenbaker
                                                                1. Continental US-CA energy policy
                                                                2. 1963-1968 L.B. Pearson
                                                                  1. 1968-1979 Trudeau
                                                                    1. Trudeamanie
                                                                      1. Character
                                                                        1. 1/2 franco, 1/2 anglo
                                                                          1. Saw CA as a united front, Idealist
                                                                            1. Saw CA as middle ground between US capitalism and Soviet socialism
                                                                              1. Very confident in his own views, but open-minded
                                                                                1. Catholic: balanced intellectuality and morality
                                                                              2. 1979-1980 Joe Clark
                                                                                1. Alberta
                                                                                2. 1980-1984 Trudeau
                                                                                  1. National Energy Program
                                                                                  2. 1984-1993 Mulroney
                                                                                    1. Free Trade Agreement 1988-1994 (CA-US form strong relationship, continentalism)
                                                                                      1. NAFTA 1994 onwards
                                                                                    2. 1984-1984 Turner
                                                                                    3. Economics
                                                                                      1. At this time, we thought inflation was the main issue in the economy
                                                                                      2. 1957-1972 Commissions
                                                                                        1. Gordon report, Wahn report, Gray report (see note)


                                                                                          • 5 concerns identified: The amount of FDI The amount of US investment relative to other countries The concentration of this investment in certain sectors Lack of investment opportunities for Canadians Implied political dependencies on US 5 recommendations: Restrict all foreign capital Subsidize domestic research and tech Canadian development corp Establishment of FIRA (Foreign Investment Review Agency) New industrial strategy     
                                                                                      3. Changing international factors
                                                                                        1. Oil crises (1973, 1979)
                                                                                          1. Uncertainty over access to oil
                                                                                            1. Increased oil prices
                                                                                              1. Anti-corporate feeling
                                                                                                1. 1979- Canadians can't afford oil, stagflation (high inflation and high unemployment)
                                                                                              2. Major themes
                                                                                                1. Regional differences
                                                                                                  1. Security
                                                                                                    1. Federal vs Provincial jurisdiction
                                                                                                      1. Security
                                                                                                        1. Global forces
                                                                                                          1. What kind of Canada do we want?
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