Alberta?s economy was in good shape in 1971 when the upstart Progressive Conservatives pushed the long-reigning Social Credit Party over to the opposition side of the Legislature. Both parties represented right-wing philosophies, with the Progressive Conservatives projecting an image more in keeping with the times. As historian David Leonard points out, Premier Lougheed?s opportunity to really stand out came in 1973:

Peter Lougheed and his Progressive Conservative government was elected in the fall of 1971, just prior to the advent of the energy crisis, or the perceived energy crisis. With the Yom Kipur War of 1973, we saw the price of oil skyrocket to, believe it or not, fifteen dollars a barrel. This put immense amounts of resources into the provincial coffers. And receiving credit for this was the Progressive Conservative Party of Peter Lougheed.

As the price of oil continued to rise, so did the royalties. And the biggest problem facing Lougheed?s government was how to spend all this money.

They incorporated the Alberta Energy Company, which gave Albertans a chance to invest before the rest of the world in this perceived developing industry of oil that was going to do nothing but grow. And grow it appeared to do. A three-point-two billion mega-project to develop the tar sands around Fort McMurray.

The overheated economy did bring with it its share of problems. Unemployment, people on welfare because so many people in the rest of Canada thought the streets of Alberta were paved with gold, and they came to Alberta.

Alberta?s economy exploded into a full-scale boom. As thousands of people poured into the province, the pressure forced the government to greatly expand its services. So the Progressive Conservative government had to take a long and hard look at how we are going to handle this problem. By 1975, the biggest government department of all was the Department of Social Services and Community Health. So directing resources towards expanding the services already in place was the answer in 1974 ?75 to the provincial government. And we saw a considerable number of schools and hospitals built. Also, community colleges were developed all over the province, while the roads were paved like they never were before.

By the time the next election came in 1975, Lougheed?s government had embarked on a major spending spree. As well, the boom had sparked a feud between Alberta and Ottawa.

On the Heritage Trail, I?m Cheryl Croucher.