NEP and Falling Energy Prices
The energy price declines of the early 1980s prompted the federal and provincial governments to update their revenue sharing agreements. The amended agreements allowed for $4.2 billion in higher revenues ($1.7 billion federal government, $1.2 billion each for provincial government and industry), which was 30 per cent of the increase that would have been gained from going to world prices. Interestingly, under the NEP industry was in fact not significantly exposed to the declining global oil prices but rather the largest part of direct revenue losses accrued to governments, meaning that the industry operated throughout the period of the NEP under relatively similar oil prices, the 'made-in-Canada' price of oil (see item (a) in National Energy Program Details, above).
Read more about this topic: National Energy Program
Famous quotes containing the words falling, energy and/or prices:
“It is a common accident for men camping in the woods to be killed by a falling tree.”
—Henry David Thoreau (1817–1862)
“The principle of avoiding the unnecessary expenditure of energy has enabled the species to survive in a world full of stimuli; but it prevents the survival of the aristocracy.”
—Rebecca West (1892–1983)
“To expect to increase prices and then to maintain them at a higher level by means of a plan which must of necessity increase production while decreasing consumption is to fly in the face of an economic law as well established as any law of nature.”
—Calvin Coolidge (1872–1933)