Alberta
Cancelling Keystone XL cost thousands of jobs and billions in GDP: U.S. government report
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Keystone facility at Hardisty, Alberta. Photo courtesy Getty Images
From the Canadian Energy Centre Ltd.
Politicians, Indigenous leaders, and labour unions criticized the cancellation for the significant consequences it could have for both Canada and the United States
There is no doubt that Keystone XL’s cancellation was a massive gut punch to Canada and its oil and gas industry. Now the analysis is out showing the impact it had on the United States.
Just a sliver over two years ago the U.S. government nixed the pipeline project which would have added an additional 830,000 barrels of oil per day into the U.S.
The pipeline, which was expected to be complete in 2023, would have provided thousands of jobs and billions in economic activity. In December, the U.S. Department of Energy released its congressionally mandated report on the matter, and it’s now known approximately how many jobs and billions of dollars were foregone due to the cancellation.
The highlighted impacts in the report show that about 20,000 potential construction jobs per year over a two-year period were lost.
The nixing of the project also had a direct impact on the U.S. GDP with a loss of $3.4 billion. Wages were also impacted, with an estimated loss of $2.05 billion in potential earnings.
While there have not been any government numbers released for Canadian job losses, TC Energy said at the time of the cancellation that 1,000 workers would be laid off due to the announcement. It was a missed opportunity to lower costs for U.S. consumers, according to the American Petroleum Institute. Indigenous groups were also impacted by the cancellation.
Dale Swampy, president of the National Coalition of Chiefs noted that “It’s quite a blow to the First Nations that are involved right now in working with TC Energy to access employment training and contracting opportunities.”
Natural Law Energy, an Indigenous-owned energy company, had signed an agreement to invest a $1 billion equity stake in the pipeline. This would have had the potential to create jobs and economic opportunity for Indigenous communities, Natural Law Energy said. More than $600 million in supply and employment agreements for Indigenous-owned companies were expected to come from the project’s construction.
While celebrated by many environmental groups, the decision to cancel Keystone XL was controversial on both sides of the border. Politicians, Indigenous leaders, and labour unions criticized the cancellation for the significant consequences it could have for both Canada and the United States.
Teamsters general president Jim Hoffa’s statement strongly encouraged the U.S. government to reconsider the decision. “This executive order doesn’t just affect U.S. Teamsters; it hurts our Canadian brothers and sisters as well who work on this project. It will reduce good-paying union jobs that allow workers to provide a middle-class standard of living to their families.”
Terry O’Sullivan, general president of the Laborers’ International Union of North America said, “By blocking this 100 percent union project, and pandering to environmental extremists, a thousand union jobs will immediately vanish, and 10,000 additional jobs will be foregone.”
The United States is the world’s largest importer of oil, and Canada is its top supplier. America will continue to rely on oil imports, according to the U.S. Energy Information Administration. Absent Keystone XL, imports will come increasingly from other countries that may not have the same environmental and human rights standards as Canada.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Alberta
Premier Smith and Health Mininster LaGrange react to AHS allegations
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Alberta Premier Danielle Smith and Health Minister Adriana LaGrange respond to allegations of political interference in the issuing of health-care contracts.
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