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Alberta

Defending Provincial Priorities

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News release from Free Alberta Strategy

The recent debate around zoning across the province is a prime example of federal encroachment.

The federal government offered money to cities to help with housing affordability challenges, but only made the money available if cities promised to change zoning policies.

As you are aware, The Free Alberta Strategy was built on the concept that the federal government needs to keep out of provincial jurisdiction.

For years, Ottawa has been watering down the constitutional delineation of duties between the federal government and the provincial government.

Bill 18 – the Provincial Priorities Act – is anticipated to pass in the Alberta Legislature this week, and represents a huge step in the direction of greater provincial jurisdictional autonomy.

The Provincial Priorities Act has been dubbed the “Keep Out of Our Backyard” law by Alberta Premier Danielle Smith.

Under the Provincial Priorities Act, any agreements between the federal government and any provincial entities – including municipalities – must receive provincial approval to be considered valid.

Agreements between the federal government and provincial entities lacking Alberta’s endorsement will be deemed illegal under this legislation.

When the legislation was announced, Smith was not mincing words:

“It is not unreasonable for Alberta to demand fairness from Ottawa. They have shown time and again that they will put ideology before practicality, which hurts Alberta families and our economy. We are not going to apologize for continuing to stand up for Albertans so we get the best deal possible.

“Since Ottawa refuses to acknowledge the negative impacts of its overreach, even after losing battles at the Federal and Supreme Courts, we are putting in additional measures to protect our provincial jurisdiction to ensure our province receives our fair share of federal tax dollars and that those dollars are spent on the priorities of Albertans.”

Although the federal government has limited direct authority in provincial jurisdiction, it can leverage its substantial financial resources to prompt or pressure provincial governments into specific actions.

The recent debate around zoning across the province is a prime example of federal encroachment.

The federal government offered money to cities to help with housing affordability challenges, but only made the money available if cities promised to change zoning policies.

Calgary Mayor Jyoti Gondek tried to claim that the federal housing funds were not contingent on the city’s rezoning efforts, but federal Housing Minister Sean Fraser posted a pretty strong response on social media platform X (formerly Twitter):

“If Calgary, or any other city, does not meet the conditions they have agreed to, we will withhold funding under the agreement.”

The federal government played the same trick in many other provinces, too.

But, notably, in Quebec, the federal government just gave the Quebec government the cash and let them distribute it to their municipalities without conditions.

It’s tempting to think this is just more federal bias towards Quebec.

But, actually, this is a great example of how pushing back can have results.

You see, the Provincial Priorities Act in Alberta is modeled after existing legislation in Quebec, known as “An Act Respecting the Ministère du Conseil exécutif,” which prohibits any municipal body from negotiating or entering into agreements with the federal government or its agencies without explicit authorization from the Quebec government.

If Ottawa wants to meddle in Quebec’s jurisdiction, it must first seek Quebec’s approval.

And it works – the federal government got back in line.

Now, with the Provincial Priorities Act, if Ottawa wants to meddle in Alberta’s jurisdiction, it must first seek Alberta’s approval.

It’s time for Ottawa to recognize Alberta’s autonomy and respect our right to determine our own future.

At the Free Alberta Strategy, we understand that constant vigilance is necessary – every time we establish a boundary, the federal government tries to circumvent it.

We will continue to inform you about what’s happening in Alberta and fight to keep Ottawa out.

But we need your support.

With your help, we can continue our work to defend Alberta’s sovereignty and serve the best interests of all Albertans.

Enough is enough – we will not stand by while our interests are disregarded.

If you are in a financial position to contribute to our work, please donate!

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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