Leduc Globally
The 1960s were a period of strength
for many sectors of the Alberta economy. Investment was booming in the period
between 1962 and 1968. The prairie provinces were prosperous due to large wheat sales to Russia
and China. Industries, in general, demonstrated greater skill and success in
securing foreign markets for their products. During this time, the provincial
policies on petroleum were relatively passive.
The 1970s were a time of weakness
in Canada. The impact of higher energy prices and the growing competition for
international markets would further reduce Canada's ability to compete in world
markets. The rising price was set by one cartel: OPEC (Organization of Petroleum
Exporting Countries).
The year 1981 saw a decline in
money spent by the petroleum industry. The deregulation of oil prices in the
United States would mark the beginning of drilling rigs moving to the United
States. In the fall of 1980, the Canadian government introduced its National
Energy Program that substantially changed regulations affecting the Canadian oil
and gas industry. Increased uncertainty and reduced cash flows contributed to a
major slowdown in activity, and money spent on exploration and development
declined by 9.6 percent.
The year 1982 witnessed a spate of
cancelled or postponed major projects, primarily in the energy field. These
cancellations were attributable to the world recession. Oil production was
declining since its peak in the 1973 due to the impact of U.S. demands of high
export prices.
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