by oiless » Thu 18 Aug 2005, 00:53:21
$this->bbcode_second_pass_quote('', 'T')he last time oil prices were at or above today's level, in real dollars, Ottawa imposed made-in-Canada oil prices under its infamous National Energy Program. If and how it plans to redistribute national wealth this time around remains to be seen.
I'd bet there will be no new version of the NEP. The pollitical will is no longer there.
There seems to be a lot of misconception about the NEP, and what it was for.
Certainly it was for price control, it was designed to keep prices of Canadian oil sold to Canadians well below the going world price.
Certainly it was designed to re-dristribute energy tax wealth to the federal government and prevent Alberta making a killing at the expense of the rest of Canada.
However I believe that Trudeau's primary purpose was to secure Canada's oil supplies. The industry was coming under increasing foreign ownership, and Trudeau felt that at least 60% of Canada's oil industry should be Canadian owned. To this aim Petrocanada was formed (national oil company), and the NEP was formulated. As may be imagined these semi-nationalistic policies were not well received by industry. The movers and shakers of the world do not like governments screwing with their profits.
Trudeau soon lost the election and his successor, Ly'in Brian Baloney (Mulroney) set about dismantling the NEP and getting us all set up with NAFTA, between singing "Irish eyes are smiling" with Ronald Reagan. (That was something to make your ears hurt.)
Now most of our oil industry is foreign owned, all but a handfull of our politicians are bought and payed for, and NAFTA ensures that we will supply the US with oil until it's gone, regardless of Canadian needs or wants.
I find it sad and pathetic that Canada produces about 40% more oil than we use each year, then exports 70% of that to the US, then imports approx. 60% of its domestic consumption.
Who do our politicians work for? Not us obviously.
In any case, NEP was not so much about price controls as control of a vital resource, and the Canadian people lost.