Alberta
US lawmakers and citizens voice preference for Canada to replace Russian imports via Keystone XL revival
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.
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.
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.
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.”
From the Fraser Institute
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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