Revisionist history. The Emergency Petroleum Allocation Act of 1973 (EPAA), created a two-tier price control system for all domestic oil. The price of “old” domestic oil was frozen, but “new” production above 1973 levels, as well as imports, were free of controls.
https://www.downsizinggovernment.org/energy/regulations

TAPS was not viable at $2 oil. North Slope oil was considered new production. The pipeline was built between 1974 and 1977 after the 1973 oil crisis caused a sharp rise in oil prices to $12 barrel. This rise made development of the Prudhoe Bay oil field economically feasible.