Following the 1970s global energy crisis which saw oil prices increase exponentially, the Government embarked on the 'Think Big' growth strategy.
This aimed to make Aotearoa at least 60% self-sufficient in energy and to attract foreign investment in energy-intensive industries. The strategy called for more hydro development, intensified oil exploration, and the use of recently-discovered natural gas reserves, either directly or to manufacture synthetic petrol. The Clyde Dam was one of these projects.