Alberta
Kenney threatens to “turn off the tap” if BC continues to block pipeline
From the United Conservative party
Kenney visits Medicine Hat, renews call for BC to end opposition to Alberta pipelines
Rachel Notley “has said she does not want to proceed with the legislation.”
– anti-pipeline BC NDP Premier John Horgan (BC Hansard, Apr. 17, 2018)
MEDICINE HAT, AB: British Columbians can expect to continue to pay soaring prices for gasoline if Premier John Horgan’s NDP government continues to obstruct pipeline construction according to United Conservative Leader Jason Kenney.
While visiting candidates Drew Barnes (Cypress-Medicine Hat) and Michaela Glasgo (Brooks-Medicine Hat), Kenney renewed his vow to use legislation to scale back exports of Alberta crude to BC-based refineries if that province’s NDP government continues to obstruct the Trans Mountain Pipeline Expansion.
BC Premier John Horgan was assured by his fellow New Democrat Rachel Notley that she would not turn off the taps (see Backgrounder).
“In recent days, lower mainland BC has been paying through the nose for gasoline,” Kenney said. “Unless John Horgan ends his unconstitutional fight against Alberta energy exports, the people of BC will need to get used to paying well over $1.70/L for gas as the result of NDP anti-pipeline obstructionism.”
BC’s NDP government is still working to stop the Trans Mountain expansion, fighting in the BC Court of Appeal just last month. Alberta’s NDP government finally caved to United Conservative pressure to pass ‘Turn of the Taps’ legislation, but failed to proclaim it, let alone ever use it.
Next Tuesday will mark one year since the NDP took UCP advice and introduced Bill 12. Since then, precisely 0 kilometres of the Trans Mountain expansion has been built and the private sector abandoned the project entirely.
Kenney announced today that a United Conservative government would proclaim Bill 12, the ‘Turn off the Taps’ law, on its first day in office.
“Albertans see through the NDP’s phony fight for pipelines,” Kenney said. “Voters remember the NDP’s historic opposition to our energy industry, including their campaign against the Northern Gateway and Keystone XL pipelines, the appointment of anti-pipeline radicals like Tzeoporah Berman, Ed Whittingham, their Cabinet Ministers protesting pipelines, and so much more. Albertans want real action to defend our jobs and way of life, not more bad political theatre from the NDP that has done so much damage to our energy industry.”
“That is why on day one of a UCP government, we will proclaim into law the Turn off the Taps legislation, and let Premier Horgan know that we will not roll over in the face of his governments unconstitutional efforts to block our energy,” Kenney announced.
Rachel Notley’s NDP government repeatedly dismissed the threat posed to the Trans Mountain expansion by the Horgan NDP in British Columbia. Despite the BC NDP openly campaigning against Trans Mountain, Rachel Notley dismissed their threat after they came to office, saying, “The BC government has stopped talking about stopping the pipeline and instead, they’re talking about ensuring that it meets high standards.”
Since 2017, Jason Kenney had been calling for the Government of Alberta to turn off the taps to BC if their anti-pipeline activism didn’t halt. Rachel Notley mocked and dismissed the suggestion repeatedly (see Backgrounder).
Alberta’s NDP government, all talk and no action on pipelines, never actually used Bill 12.
In recent days, gasoline prices have skyrocketed in Vancouver, reaching an all-time high of $1.67L on Thursday.
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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