Economics and EnvironmentEmbargo CrisisInflationPollution and Protection

The Embargo CrisisAn oil embargo imposed in

1973 by OPEC (Saudi Arabia, Kuwait, and other Arab oil-producing nations)

Why?1973 War between Israel and

Arab neighbors- Western nations supported

Israel- In retaliation, OPEC

refused to sell oil to countries allied with Israel

- Overnight gas and oil prices jumped 400%

The Inflation Crisis• The huge increase in oil

prices started a round of inflation that would last most of the 1970s

• Prices of manufactured products went up dramatically while the power of the dollar fell

• Canadians demanded higher wages but as wages rose so did prices and the cycle of inflation continued

• Demand for product decreased which led to layoffs

Inflation and the Canadian Family• Inflation stretched

household budgets and so women were encouraged to go back to work

• Dual income families became common

• By 1978, the average families buying power had fallen for the first time since WWII

The Government Attempt to Fix Oil Prices•The government froze the price of

domestic oil and gas and imposed a tax on petroleum exported from Western Canada

•The money raised by the tax would subsidize the cost of imported oil in the East

- Made Alberta very mad as it wanted to charge world prices for its oil

- Government ripping them off

National Energy Program• To deal with the oil crisis and rising gas prices

the Liberals created the NEP

Provided funding to Canadian petroleum companies to drill for oil in the Arctic and off Newfoundland

Encouraged consumers to switch from oil to gas ands electric power

By 1984 the price of oil had fallen and the NEP was dismantled

- Left a lasting bitterness in the West

Environmental Movement• In 1962, North Americans

began to be aware of the extent of environmental damage

A new occurrence began to form in which all the birds began to go missing and everything had a thin layer of soot, even in suburban areas

Businesses resisted attempts to limit pollution, but public concern began to grow

Silent Spring • Environmental science

book written by Rachel Carson and published in 1962.

- documented the detrimental effects on the environment—particularly on birds—of the indiscriminate use of pesticides

• Argued that the chemical industry was to blame as it was producing toxic pesticides and claiming that they are safe

GreenPeace• Greenpeace was created

in 1970 by a group of activists in BC to draw attention to environmental concerns

• Strong anti-nuclear message may have helped promote the end of the cold war

• Today it is an international organization with over 2.8 million members

- Protect the world’s ecosystems and promote peace and non-violence

Mackenzie Valley • The most significant

Aboriginal victory during the 1970s

• The Inuit, Métis, and Indian Brotherhood (Dene)of the Yukon and NWT lobbied to halt the construction of oil and natural gas pipelines that run through their lands

• Demanded a study to determine the impact on the environment

Mackenzie Valley •The Berger Commission recommended that

construction of the pipeline be suspended for 10 years pending an environmental study and negotiations with Aboriginal peoples

As of 2009 the Federal government did not invest in the pipeline and the Aboriginal Pipeline Group had become a 1/3 partner in the project

Arctic Waters Pollution Prevention Act• Canadian government

statute to prevent pollution of areas of the arctic waters adjacent to the mainland and islands of the Canadian arctic

- Created a 100 mile pollution free zone around the islands of the Canadian Arctic

- Strict environmental regulations and oil tanker traffic controlled

Why was it a Priority to Pass?• Passed because the US

was treating the Northwest Passage as an international waterway and allowing oil tankers to use this route without Canadian approval

• Not only did this impede Canadian sovereignty, but it increased the likelihood of an oil spill