Alberta and the National Energy Program

The National Energy Program (NEP) was introduced on 28 October 1980 by the Honourable Marc Lalonde, the Energy minister of Canada. The NEP sought to increase both Canadian control and Canadian ownership of the energy industry. It also sought to protect all Canadians from surging oil prices. The federal government would accomplish their goals through measures such as price controls and federal taxes on oil and gas production, which would increase their control of the oil and gas industry.

Many Albertans were angered by the NEP for several reasons. First, they perceived the NEP as an intrusion on their provincial rights since control of natural resources falls under provincial jurisdiction. Second, some Albertans felt that the NEP was passed to benefit central Canada, particularly Ottawa. Many argued that Alberta lost a tremendous amount of money due to the NEP. These figures differ from scholar to scholar and range from $50 to $100 billion dollars. Third, Albertans were angered by the NEP due to the fact that a significant number of oil companies left the province of Alberta, leaving many people unemployed. Some Albertans showed their disapproval by sporting bumper stickers that stated "Let the eastern bastards freeze in the dark."

Premier Peter Lougheed announced that Alberta would fight the NEP by cutting oil production. A new energy accord was reached in September of 1981 between Alberta and the federal government, but many viewed the energy deal as a watered down version of the NEP. It was not until 1985 that oil and gas prices were restored to market levels when the federal government under Brian Mulroney introduced the Western Accord.

To this day, the NEP is a sore spot with many Albertans. The NEP is often cited as an example of federal government discrimination and has led to increased feelings of western alienation and the creation of several western separatist groups.

	In this radio broadcast from the CKUA archives, host Carol Candid reports on Premier Peter Lougheed's restriction of oil production in retaliation for oil price controls imposed by the federal government. She explains how this will cost Canadians more to import oil. [Listen]

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