With gas-guzzling automobiles, expanding highways and growing suburbs, the Canadian economy was increasingly fuelled by oil in the 1970s. This increase in fuel usage ended the era of secure, cheap oil. The period brought on the creation of the Organization of Petroleum Exporting Countries (OPEC); oil prices reached an all time high, when OPEC cut back on oil production in 1973. The impact was huge and caused high unemployment and major inflation in Canada. This cut back became known as the OPEC energy crisis and caused distress in Canada between Ottawa and the West, especially Alberta. Alberta was a province rich in oil and the federal government turned to them during the crisis to keep Canadian gas prices below the world levels. By adding a tax to their oil exports, the government caused a long struggle with Alberta for control of energy prices and revenues. Throughout history the federal government has looked for ways to help Canada's East, but many times at the expense of Western......
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Approximate Pages: 5 (260 words per double-spaced page) |