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Alberta

Alcohol sales in grocery and convenience stores would benefit Albertans

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From the Fraser Institute

By Alex Whalen

Earlier this year, the Smith government confirmed that a panel of MLAs has been exploring the idea of allowing grocery and convenience stores to sell alcohol. Since then, there’s been no new developments. But despite misleading claims from some groups resisting the move, greater retail access would benefit consumers.

Alberta’s fully-private retail market for alcohol is unique within Canada. Following privatization of alcohol retail in 1993, consumers in Alberta have benefitted from greater choice and convenience in the absence of government-owned retail outlets. However, the provincial government still controls which private operators can sell alcohol, and generally prohibits the sale in convenience and grocery stores.

But expansion into grocery and convenience stores simply makes sense. Individual retailers should decide where to sell (or not sell) alcohol to cater to consumer preferences rather than have terms dictated by government. As the footprint of government has expanded in Alberta, policymakers should remember what are the core functions of government, and what’s best left to the private sector. And there’s no good reason for government to dictate which stores can sell alcohol.

Again, some groups including the Canadian Centre for Policy Alternatives claim that Albertans pay higher prices for alcohol under privatization, yet this claim simply doesn’t add up.

First, these groups typically use average prices across Canada to support this claim. But average prices across Canada—which includes provinces with strict government controls of alcohol sales—are meaningless because the mix of products in Alberta has changed. In post-privatization Alberta, retailers and consumers come together in a market to set prices. Consumers may willingly pay more for alcohol in Alberta because they find higher quality products, more convenient locations and/or better store hours than in other provinces.

Rather, what matters are not “average prices” but minimum prices and the ability to find the product you desire at the lowest available price. One comparison of nearly 2,000 products between Alberta and British Columbia (which maintains a more government-controlled system of retail) using minimum prices estimated that 83 per cent of beer, wine and spirits were available at cheaper prices in Alberta.

Moreover, liquor store locations have also become more convenient for Albertans. In 2018 (the latest year of available data), 64 per cent of Albertans lived within a kilometre of a liquor store—by far the highest percentage of any province in Canada and much higher than the 26 per cent in Ontario, which has government-operated liquor stores. In the United States, three-quarters of Americans are served by a private liquor retailing system, and privatized states have 50 per cent more liquor stores per capita than those where government controls sales.

And Alberta’s liquor product selection has expanded from 2,200 in 1993 to more than 31,000 varieties of beer, wine and spirits today. By comparison, Ontarians have at least 6,000 fewer products available.

Finally, critics claim that privatization leads to increases in social problems that arise from alcohol consumption. However, the leading study of Alberta’s 1993 privatization found no evidence of increased social problems such as impaired driving or other alcohol-related offenses.

Alberta has led the way in promoting consumer choice in what is otherwise a strictly controlled market for alcohol in Canada. To strengthen this advantage, the Smith government should continue to remove unnecessary restrictions for the benefit of Albertans.

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Alberta

Big win for Alberta and Canada: Statement from Premier Smith

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Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:

“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.

“This is precisely what I have been advocating for from the U.S. administration for months.

“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.

“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.

“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.

“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”

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Alberta

Energy sector will fuel Alberta economy and Canada’s exports for many years to come

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From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.

Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.

In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.

The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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