This dissertation examines the 61-year evolution of public policies pertaining to development of Alberta's non-conventional source of crude oil. The Athabasca oil sands contain an estimated 1.5 trillion barrels and provide for a safe continental supply. The Provincial Government first sponsored this undertaking in 1943. The period from then to 1971 was one of a transition from a wheat economy to a natural-resource economic base. A stable government emerged and was able to negotiate viable development policies. A second period, 1971 to 1986, was marked by unstable world conditions that afforded the Alberta government the ability to set terms of development with multi-national oil firms. A 50% profit-sharing plan was implemented, and basic 1973 terms lasted until 1996. However, 1986 was a critical year because the Organization of Petroleum Exporting Countries (OPEC) reduced prices, causing the Alberta economy to lapse into recession. During a third period, 1986 to 1996, the Alberta Government was unable to adapt quickly to world conditions. A new leadership structure in 1996 made major changes to create ongoing fiscal and development policies.

That history provides answers to two primary research questions: How do public policies affect the behaviors of the modern corporation and visa versa? What are the implications for development theory?

Two sources of information were used for this study. First, it was possible to review the Premier's files located in the Provincial Archives. Materials from various government libraries were also examined. Some 7,000 documents were used to show the evolution of government policymaking. Second, interviews with leaders of oil companies and federal research facilities were important.
Findings support the thesis that, to facilitate oil sands development, government and the private sector have closely collaborated. In particular, revenue policies have allowed for effective R&D organization. Relying on intensive technological innovations to achieve economic oil sands productivity, the oil companies have responded successfully to declining rates of American conventional oil production. With respect to North American hinterlands, implications for development theory center on connections among established and changing political coalitions, capacities for technological innovations, and responses to dynamic world conditions.