1985 : new energy deal

The 540-mile Norman Wells pipeline was completed by Interprovincial Pipe Line in 1985, allowing 25,000 barrels per day of commercial crude deliveries from Esso Resources. A new energy deal was also announced by the federal energy minister, ending 11 years of administered oil prices. The new energy deal also marked the demise of the National Energy Program. The Western Accord deregulated oil prices and eliminated oil export charges. It also provided for the phasing out of the petroleum and gas revenue tax and frontier exploration grants under the Petroleum Incentive Program (PIP). However, grandfathering provisions in the energy deal extended the PIP until 1987. The agreement was viewed by industry as a measure for national economic recovery from the recession of the early 1980s. In 1985, the Newfoundland Accord provided a $300 million offshore development fund and co-management of resources. Safety regulations were also overhauled following the sinking of the Ocean Ranger. The first 100,000 barrel shipment of crude oil from the Bent Horn Field was sent to Montreal after nearly 2 decades of work in the Arctic. 1 tab., 1 fig