This book investigates the complex interplay between state intervention in the energy sector and the structure of Canadian federalism, using the creation and privatization of Petro-Canada as a central case study. John Erik Fossum examines the motivations behind the federal government's involvement in the energy industry from 1973 to 1984, detailing how initial objectives were ultimately unmet, leading to Petro-Canada's privatization in 1990. Unlike in other nations where state oil policy often involved direct conflict between the state and industry, Fossum demonstrates how Canadian conflict was redirected towards jurisdictional and constitutional disputes among governmental actors. The book further analyzes how the subsequent dismantling of state intervention correlated with a reduction in conflict across both state-industry and intergovernmental spheres.

This book offers a sophisticated analysis of Canadian public policy-making through the lens of statist and federalist theories. It is expected to stimulate debate among political scientists, analysts, and policymakers by dissecting the reasons behind the federal government's intervention in the energy sector and the subsequent privatization of Petro-Canada. The work highlights a unique Canadian dynamic where conflicts over state intervention were deflected into intergovernmental and constitutional arenas, differentiating it from international experiences. The book's detailed examination of this period provides valuable insights into the complexities of resource management and federal-state relations.