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Essay: Canadian Supply crisis

Sample Essay

Canada underwent supply crisis due to OPEC’s move to seize shipment of crude oil to Canada. Oil supply shifted to 18.5 from 44 percent of the total supplies. In 1972 country’s oil reserve were 118 billion barrels which dropped to 83 billion barrels in 1973. [1]

Under a great international pressure of domestic supply constraints, Canadian government put a great emphasis to ease the local content requirement and decided upon Sarnia – Montreal inter-provincial oil pipeline extension. The benefit of such an idea was quoted by then deputy minister of EMR, Jack Austin as:

  To assist in protecting eastern Canadians from international oil supply vulnerability, we decided that a pipeline had to be constructed from Sarnia to Montreal, with a capacity of approximately 300,000 barrels a day. It didn’t look after all the vulnerabilities of the eastern market but it helped greatly. (n.d)


[1] James Laxer,”Canada’s Energy Resources and Needs,” Canada’s Energy Crisis, (1975) [Database on-line]; retrieved from http://books.google.com.pk/books?id=d_BzKIQtYAYC&pg=PA55&dq=1973+oil+crisis%2Bcanada&hl=en&ei=ckxRTermB4_ysgbNtvHWBg&sa=X&oi=book_result&ct=result&resnum=3&ved=0CDcQ6AEwAg#v=onepage&q=1973%20oil%20crisis%2Bcanada&f=false p 53-61

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