ABSTRACT
Canada was thought to have large reserves of conventional oil and gas and vast untapped potential in the arctic, off the east coast, and in Alberta oil sands. Until 1973, Canada's energy policy had evolved under the influence of two fundamental policy objectives: the growth of the domestic oil and gas industry was to be encouraged with its viability guaranteed over the long term, and Canadian consumers were to be provided with abundant low-cost energy. In the Canadian decision, the issue of autarky or interdependence was posed starkly. Energy issues became a matter of high politics within Canada and an important symbol of the desire for greater independence from American influence. In a period of rising economic rent in the sale of oil and increasing government intervention in the free market, the latent tensions of regionalism, economic disparities, and federal-provincial conflict were rekindled as driving forces in the determination of energy policy.
