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Alberta

Premier Kenney demands PM Trudeau retaliate against President Biden in defence of Keystone XL

Published

4 years ago

7 minute read

The day before President Biden’s inauguration, the incoming government announced the President would rescind the Presidential permit for the Keystone XL Pipeline.  True to his word, one of the first actions of the new President was to retroactively cancel the pipeline which is partially owned by the Canadian Government.
Considering the massive investment by the Province of Alberta which would leave Alberta taxpayers also on the hook for about a billion dollars, Premier Jason Kenney has been speaking out loudly and aggressively.   Premier Kenney has used strong language including “This is not now you treat a friend and ally.”
Regarding Canada’s response (The federal government is a part owner of the pipeline) Kenney is also calling on Prime Minister Trudeau and the federal government to stand up and retaliate with statements such as. “When the former Trump administration slapped punitive tariffs on Ontario and Quebec steel and aluminum in 2018, the Trudeau government imposed $16 billion worth of countervailing tariffs on U.S. goods the very same day.  By contrast, when Alberta oil was attacked on Wednesday: nothing.”
Here are statements Premier Kenney has released over the last three days in full:

January 19

“Canada should be President Biden’s first priority in re-establishing U.S. energy security. Canada is the environmental, social and governance (ESG) leader among global energy powers.
Alberta’s oilsands, once a source of carbon intensive barrels, has reduced carbon intensity by over 20 per cent in the past nine years. The average barrel produced in Canada is now cleaner than one produced in California.
Canada leads the world in key environmental categories like methane regulation, water use, and innovations like carbon capture and sequestration; and individual Canadian firms hold the top ESG scores in the industry.
TC Energy, the builder of KXL, has also committed to being net zero by 2030, ahead of its US peers, and hire a U.S. union workforce.
You won’t get those commitments from Venezuelan shippers.
Canada’s oil reserves are vast at 170 billion barrels, making Alberta’s oilsands the third largest supply in the world, holding more oil than Russia, China and the USA combined. Keystone XL secures access to this strategic supply for purpose-built U.S. refining capacity in the Gulf.
On environmental and strategic grounds this should be far preferable to carbon-intensive rail transit — or alternate supply from Venezuelan tankers.”

January 20

The United States is our most important ally and trading partner. Amongst all of the Canadian provinces, Alberta has the deepest economic ties to the United States with $100 billion worth of exports, and strong social connections that go back over a century.
As friends and allies of the United States, we are deeply disturbed that one of President Biden’s first actions in office has been to rescind the Presidential permit for the Keystone XL Pipeline border crossing.
My thoughts are with the 2000 people who lost their jobs today, and all those who are coping with the devastating consequences of this decision.
The US State Department’s own exhaustive analysis conducted under President Obama’s administration concluded that Keystone XL would actually reduce emissions, as the alternative will be to move this energy by higher emitting and less secure rail transport.
The Government of Canada has more ambitious emissions goals than the new US Administration, and our provincial government is investing billions of dollars in the development of emissions reductions technology.
This means that Alberta, Canada, and the Keystone XL pipeline are part of the solution in the energy transition.
For months we’ve been told that the Biden transition team would not communicate with foreign governments on this or other issues. And now a decision has been made without even giving Canada a chance to communicate formally with the new administration.
That’s not how you treat a friend and ally.
We will continue to fight for Alberta’s responsible energy industry, and for the 59,000 jobs that this project would create.
Alberta’s government calls for the federal government and Prime Minister Trudeau to immediately enter into talks with the Biden administration on their cancellation of the Keystone XL pipeline in the context of a broader agreement on energy supply and climate action.
Failing an agreement with the American government, we call on the Government of Canada to respond with consequences for this attack on Canada’s largest industry. We are not asking for special treatment, simply the same response that Canada’s government had when other areas of our national economy were under threat from the US government.

January 21

“He has been so anti-oil himself during his five-plus years in office (including not objecting loudly to the Obama administration’s first cancellation of Keystone in 2015), that the incoming Biden administration must have known our Liberals wouldn’t put up much of a stink if it killed Keystone.
When the former Trump administration slapped punitive tariffs on Ontario and Quebec steel and aluminum in 2018, the Trudeau government imposed $16 billion worth of countervailing tariffs on U.S. goods the very same day.
By contrast, when Alberta oil was attacked on Wednesday: nothing.
Also, Trudeau can be blamed for making the death of Keystone matter so much. Had Trudeau not killed two other all-Canadian pipelines — Energy East and Northern Gateway — the end of Keystone wouldn’t be such a crippling blow.”

From January 20

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Alberta

Big win for Alberta and Canada: Statement from Premier Smith

Published on April 2, 2025

By

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

Published on April 2, 2025

By

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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