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Alberta

US lawmakers and citizens voice preference for Canada to replace Russian imports via Keystone XL revival

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President Biden cancelled major pipeline from Canada on his first day in office

From The Canadian Energy Centre Ltd. 

On the heels of President Biden’s ban on the import of all Russian oil and gas products, a new poll shows that 71 per cent of Americans think Biden should reverse his decision to cancel the Keystone XL pipeline, while 64 per cent believe Canadian production should replace Russian oil.  

The U.S. bought  640,000 barrels per day on average of oil and petroleum products from Russia between July and December, according to the latest data from the U.S. Energy Information Administration.   

The Keystone XL pipeline would have had capacity to ship 830,000 barrels per day from Western Canada to the U.S. refineries, starting in 2023.  

Instead of looking to America’s largest trading partner, Canada, to increase oil exports, the White House is turningto regimes like Saudi Arabia, Iran and Venezuela.   

Maintaining a secure and reliable supply of energy products has never been more important.   

US leaders continue to challenge the year-old decision to cancel the Keystone XL pipeline expansion project, calling for its reinstatement.  

Here’s what they had to say this week:   

 

Senator John Boozman (AR) tweeted 

Pulling the plug on the Keystone XL Pipeline hurt Americans. It cost 1000s of jobs—many in Arkansas—and a cleaner, faster energy supply. Restarting this project & opening up domestic oil & gas deposits will benefit American consumers & our allies abroad. 

Senator Shelley Moore Capito (WV) tweeted 

Why are West Virginians paying more at the pump? 

– No domestic production on federal lands 

– Cancelation of Keystone XL pipeline 

– Anti-fossil fuel policies 

– Record inflation 

– Pipeline buildout prevention 

Decisions have consequences, @potus, and it’s time to take responsibility.  

Senator Bill Hagerty (TN) tweeted 

Biden should be announcing today that we’re reopening the Keystone XL Pipeline, that we’re going to be drilling on federal lands. We need to become energy independent again now—not driving up prices around the world & fueling Vladimir Putin’s war machine. 

And 

Instead of ineffective green energy fanaticism, the Biden Administration needs to come out and clearly state that we’re going to reopen the Keystone XL pipeline, that we’re going to get back in the energy business, and that we’re going to become energy independent again. 

And 

Biden’s work with our adversaries for energy has to stop! And we could stop it—re-open the Keystone XL pipeline, DRILL, get back in the energy business, & remove this massive lever that Vladimir Putin has over the American economy. Biden could and should do this TODAY. 

Senator Ron Johnson (WI) tweeted 

When President Biden got into office, he canceled the Keystone XL Pipeline, ignored the crisis at the southern border, and pushed for out-of-control government spending that sparked inflation rates we haven’t seen in decades. Democrat policies have weakened America. 

Senator Rick Scott (FL) tweeted 

Joe Biden’s war on American energy is why gas prices have skyrocketed. Does he care that this hurts working families? Nope.  

Biden has been bragging about his failed policies, like killing the Keystone Pipeline. Americans can’t afford this shameful indifference. #BidensPriceHike 

RT: @MikeKBerg “Joe Biden on the campaign trail: “I guarantee you, I guarantee you we are going to end fossil fuel.” Now gas prices are at record highs and Biden says his policies aren’t to blame? 

Senator Roger Wicker (MS) said 

President Biden’s hostile plans for American energy came into view in 2019 when he told his far-left supporters, “I guarantee you, we are going to end fossil fuel.” Since taking office, he has been working overtime to cut production of U.S. oil, natural gas, and coal. Last year, he ended the Keystone XL pipeline project, halted new oil and gas leases on federal lands and waters, banned drilling in oil-rich parts of Alaska, and rejoined the Paris Climate Agreement, all of which will kill American energy jobs. These decisions have driven up energy costs and made it harder for us to absorb recent price surges stemming from Putin’s war in Ukraine. 

Republican House Leader Kevin McCarthy (CA) said 

Under President Biden’s leadership, energy imports from Russia increased by 34%. This administration has not only stalled oil and natural gas exports to our allies, but has blocked further energy transportation infrastructure in the U.S., like the Keystone XL Pipeline, while supporting projects abroad, like Russia’s Nord Stream 2 pipeline. With investments in our own pipeline infrastructure, American refineries could have easy access to Canadian crude oil instead of Russian oil.   

Rep. Troy Balderson (OH) tweeted 

Bad for American energy independence: 

Canceling Keystone XL Pipeline 

Halting energy leases on federal lands 

Greenlighting Russia’s Nord Stream 2 

Begging OPEC for oil 

Punishing producer w/ new taxes and fees 

Rep. Lauren Boebert (CO) tweeted: 

My bill, H.R. 7012, restarts the Keystone Pipeline, allows responsible drilling in ANWR, expedites LNG exports, restarts O&G leasing, provides ammo to Ukraine, and actually bans oil and gas imports from Russia, Iran, and Venezuela. This is the real solution America needs! 

Rep. Kat Cammack (FL) tweeted: 

There was no funding for authorizing the restart of the Keystone pipeline, and this administration has not approved a single permit since they took office.  

We need to get serious about domestic energy production.  

Rep. Randy Feenstra (IA) tweeted 

During my 39 county tour stops, Iowans tell me they want America to be energy independent again. We should build the Keystone XL Pipeline and increase ethanol and biodiesel. It’s time to end our reliance on foreign energy! #IA04 

Rep. Mark Green (TN) tweeted: 

By blocking our own pipeline but allowing others, Joe Biden has made it clear that both climate change and American jobs are just a political game to him. 

Rep. Lisa McClain (MI) tweeted: 

One of President Biden’s first actions in office was to shut down the Keystone XL pipeline.  

As much as gas prices right now are a result of Putin’s war, they’re also a direct result of Biden’s poor policies.  

Rep. Elise Stefanik (NY) tweeted: 

On his first day in office, Joe Biden made his anti-energy agenda clear. 

He ended the Keystone XL pipeline and launched his war on American energy independence. 

Rep. Claudia Tenney (NY) tweeted: 

What should Biden do to increase energy production?  

  End his freeze on new oil and gas projects  

  Restart construction of Keystone XL Pipeline  

  Fast-track pending export permits for liquified natural gas (LNG) 

Rep. Bruce Westerman (AR) tweeted 

@POTUS can’t gaslight the American people into believing Putin is the only reason for increased gas prices. 

Gas prices started to rise from Biden’s first day in office when he launched his war on American energy. 

He made this bed. Now we have to lie in it. 

Governor Greg Abbott (TX) tweeted: 

New poll: Large majority of Americans unhappy with Biden’s handling of high gas prices. 

Ya think? 

He caused it when he closed pipelines & canceled oil & gas permits. 

If you stop production and transportation of oil, the price of gas goes up. 

Alberta

The beauty of economic corridors: Inside Alberta’s work to link products with new markets

Published on

From the Canadian Energy Centre

Q&A with Devin Dreeshen, Minister of Transport and Economic Corridors

Devin Dreeshen, Alberta’s Minister of Transportation
and Economic Corridors.

CEC: How have recent developments impacted Alberta’s ability to expand trade routes and access new markets for energy and natural resources?

Dreeshen: With the U.S. trade dispute going on right now, it’s great to see that other provinces and the federal government are taking an interest in our east, west and northern trade routes, something that we in Alberta have been advocating for a long time.

We signed agreements with Saskatchewan and Manitoba to have an economic corridor to stretch across the prairies, as well as a recent agreement with the Northwest Territories to go north. With the leadership of Premier Danielle Smith, she’s been working on a BC, prairie and three northern territories economic corridor agreement with pretty much the entire western and northern block of Canada.

There has been a tremendous amount of work trying to get Alberta products to market and to make sure we can build big projects in Canada again.

CEC: Which infrastructure projects, whether pipeline, rail or port expansions, do you see as the most viable for improving Alberta’s global market access?

Dreeshen: We look at everything. Obviously, pipelines are the safest way to transport oil and gas, but also rail is part of the mix of getting over four million barrels per day to markets around the world.

The beauty of economic corridors is that it’s a swath of land that can have any type of utility in it, whether it be a roadway, railway, pipeline or a utility line. When you have all the environmental permits that are approved in a timely manner, and you have that designated swath of land, it politically de-risks any type of project.

CEC: A key focus of your ministry has been expanding trade corridors, including an agreement with Saskatchewan and Manitoba to explore access to Hudson’s Bay. Is there any interest from industry in developing this corridor further?

Dreeshen: There’s been lots of talk [about] Hudson Bay, a trade corridor with rail and port access. We’ve seen some improvements to go to Churchill, but also an interest in the Nelson River.

We’re starting to see more confidence in the private sector and industry wanting to build these projects. It’s great that governments can get together and work on a common goal to build things here in Canada.

CEC: What is your vision for Alberta’s future as a leader in global trade, and how do economic corridors fit into that strategy?

Dreeshen: Premier Smith has talked about C-69 being repealed by the federal government [and] the reversal of the West Coast tanker ban, which targets Alberta energy going west out of the Pacific.

There’s a lot of work that needs to be done on the federal side. Alberta has been doing a lot of the heavy lifting when it comes to economic corridors.

We’ve asked the federal government if they could develop an economic corridor agency. We want to make sure that the federal government can come to the table, work with provinces [and] work with First Nations across this country to make sure that we can see these projects being built again here in Canada.

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2025 Federal Election

Next federal government should recognize Alberta’s important role in the federation

Published on

From the Fraser Institute

By Tegan Hill

With the tariff war continuing and the federal election underway, Canadians should understand what the last federal government seemingly did not—a strong Alberta makes for a stronger Canada.

And yet, current federal policies disproportionately and negatively impact the province. The list includes Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off British Columbia’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.

Meanwhile, Albertans contribute significantly more to federal revenues and national programs than they receive back in spending on transfers and programs including the Canada Pension Plan (CPP) because Alberta has relatively high rates of employment, higher average incomes and a younger population.

For instance, since 1976 Alberta’s employment rate (the number of employed people as a share of the population 15 years of age and over) has averaged 67.4 per cent compared to 59.7 per cent in the rest of Canada, and annual market income (including employment and investment income) has exceeded that in the other provinces by $10,918 (on average).

As a result, Alberta’s total net contribution to federal finances (total federal taxes and payments paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion from 2007 to 2022—more than five times as much as the net contribution from British Columbians or Ontarians. That’s a massive outsized contribution given Alberta’s population, which is smaller than B.C. and much smaller than Ontario.

Albertans’ net contribution to the CPP is particularly significant. From 1981 to 2022, Alberta workers contributed 14.4 per cent (on average) of total CPP payments paid to retirees in Canada while retirees in the province received only 10.0 per cent of the payments. Albertans made a cumulative net contribution to the CPP (the difference between total CPP contributions made by Albertans and CPP benefits paid to retirees in Alberta) of $53.6 billion over the period—approximately six times greater than the net contribution of B.C., the only other net contributing province to the CPP. Indeed, only two of the nine provinces that participate in the CPP contribute more in payroll taxes to the program than their residents receive back in benefits.

So what would happen if Alberta withdrew from the CPP?

For starters, the basic CPP contribution rate of 9.9 per cent (typically deducted from our paycheques) for Canadians outside Alberta (excluding Quebec) would have to increase for the program to remain sustainable. For a new standalone plan in Alberta, the rate would likely be lower, with estimates ranging from 5.85 per cent to 8.2 per cent. In other words, based on these estimates, if Alberta withdrew from the CPP, Alberta workers could receive the same retirement benefits but at a lower cost (i.e. lower payroll tax) than other Canadians while the payroll tax would have to increase for the rest of the country while the benefits remained the same.

Finally, despite any claims to the contrary, according to Statistics Canada, Alberta’s demographic advantage, which fuels its outsized contribution to the CPP, will only widen in the years ahead. Alberta will likely maintain relatively high employment rates and continue to welcome workers from across Canada and around the world. And considering Alberta recorded the highest average inflation-adjusted economic growth in Canada since 1981, with Albertans’ inflation-adjusted market income exceeding the average of the other provinces every year since 1971, Albertans will likely continue to pay an outsized portion for the CPP. Of course, the idea for Alberta to withdraw from the CPP and create its own provincial plan isn’t new. In 2001, several notable public figures, including Stephen Harper, wrote the famous Alberta “firewall” letter suggesting the province should take control of its future after being marginalized by the federal government.

The next federal government—whoever that may be—should understand Alberta’s crucial role in the federation. For a stronger Canada, especially during uncertain times, Ottawa should support a strong Alberta including its energy industry.

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