The drop in the price of OPEC oil from $34.00 U.S. per barrel to $29.00 U.S. is good news for the oil importing countries. However, it presents serious difficulties for the producing countries, which are now faced with the inescapable need to drastically cut expenditures. At the same time, the drop in oil prices also plays havoc with non-OPEC producing countries, especially Britain, Norway, Canada, and Mexico. What, under normal circumstances, would have been welcome news is now the source of potential conflict and difficult choices. For example, the drop in oil revenues for the provincial and federal governments as well as for the producers endangers the National Energy Policy of the Canadian government and will make the move towards energy self-sufficiency more difficult.