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Alberta

Alberta remains largest net contributor to Ottawa’s coffers despite damaging federal policies

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From the Fraser Institute

By Tegan Hill and Spencer Gudewill

According to a recent poll by the Angus Reid Institute, nearly half of Albertans believe they get a “raw deal”—that is, they give more than they get—being part of Canada. It’s easy to see why Albertans are frustrated. Despite the province’s crucial role in the federation, the federal government continues to inflict restrictive and damaging policies on the Albertan economy.

The Trudeau government’s list of policies 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), the oil and gas emission cap, the “clean fuel standard,” numerous “net-zero” targets that disproportionately impact Alberta, and so on. Not surprisingly, the same poll found that 65 per cent of Albertans believe federal government policies have hurt their province’s economy.

What’s less clear is why the federal government wants to thwart Alberta’s economic engine, considering how much the province contributes to the federation financially. In our current system of federalism, Ottawa collects various taxes then redistributes money to Canadians in other provinces for federal programs including equalization, the Canada Pension Plan (CPP) and employment insurance.

According to a new study published by the Fraser Institute, from 2007 to 2022 (the latest period of available data), Albertans contributed $244.6 billion more in taxes and other payments to the federal government than they received in federal spending—more than five times as much as British Columbians or Ontarians. The other seven provinces received more federal dollars than they contributed to federal revenues. In other words, Alberta is by far the largest net contributor to Ottawa’s coffers.

Alberta’s large net contribution reflects its comparatively young population (fewer retirees), higher rates of employment, higher average incomes and relatively strong economy. Alberta has a history of punching above its weight economically. For perspective, from 1981 to 2022, the province had the highest annual average economic growth rate in Canada. And despite dips in growth due to the 2014 oil-price collapse and COVID, in 2022 Alberta accounted for 17.9 per cent of Canada’s total economic growth despite being home to just 11.6 per cent of the country’s population.

It’s a similar story for business investment per private-sector worker (in 2022, Alberta’s level more than doubled the non-Alberta average among provinces) and private-sector job growth with Alberta contributing nearly one in every five private-sector jobs created in Canada in 2022.

Alberta’s prosperity, which helps fuel federation, may help explain why in 2022 56,245 more Canadian residents moved to Alberta than left it—a much higher net inflow than in any other province. For decades, Alberta has provided economic opportunities for Canadians from other provinces willing to relocate.

Finally, without Alberta’s large net contribution to the federal government’s bottom line, Ottawa would have significantly larger budget deficits. In 2022, for instance, without Alberta the Trudeau government’s $25.7 billion budget deficit would have ballooned to $39.9 billion. The larger the deficit (all else equal) the greater the debt accumulation, which Canadians must ultimately finance through their taxes.

When Alberta’s economy is strong and prosperous, it benefits all of Canada. And due to Alberta’s economic success, Albertans continue to contribute relatively more to the federation than Canadians in other provinces. That’s something the federal government should encourage, not discourage.

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Alberta

Danielle Smith slams Skate Canada for stopping events in Alberta over ban on men in women’s sports

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From LifeSiteNews

By Clare Marie Merkowsky

The Alberta premier has denounced Skate Canada as ‘disgraceful’ for refusing to host events in the province because of a ban on ‘transgender’ men in women’s sports.

Alberta Premier Danielle Smith has demanded an apology after Skate Canada refused to continue holding events in Alberta.

In a December 16 post on X, Smith denounced Skate Canada’s recent decision to stop holding competitions in Alberta due to a provincial law keeping gender-confused men from competing in women’s sports.

“Women and girls have the right to play competitive sports in a safe and fair environment against other biological females,” Smith declared. “This view is held by a vast majority of Albertans and Canadians. It is also common sense and common decency.”

“Skate Canada‘s refusal to hold events in Alberta because we choose to protect women and girls in sport is disgraceful,” she declared.

“We expect they will apologize and adjust their policies once they realize they are not only compromising the fairness and safety of their athletes, but are also offside with the international community, including the International Olympic Committee, which is moving in the same direction as Alberta,” Smith continued.

Earlier this week, Skate Canada announced their decision in a statement to CBC News, saying, “Following a careful assessment of Alberta’s Fairness and Safety in Sport Act, Skate Canada has determined that we are unable to host events in the province while maintaining our national standards for safe and inclusive sport.”

Under Alberta’s Fairness and Safety in Sport Act, passed last December, biological men who claim to be women are prevented from competing in women’s sports.

Notably, Skate Canada’s statement failed to address safety and fairness concerns for women who are forced to compete against stronger, and sometimes violent, male competitors who claim to be women.

While Skate Canada maintains that gender-confused men should compete against women, the International Olympic Committee is reportedly moving to ban gender-confused men from women’s Olympic sports.

The move comes after studies have repeatedly revealed what almost everyone already knew was true, namely that males have a considerable innate advantage over women in athletics.

Indeed, a recent study published in Sports Medicine found that a year of “transgender” hormone drugs results in “very modest changes” in the inherent strength advantages of men.

Additionally, male athletes competing in women’s sports are known to be violent, especially toward female athletes who oppose their dominance in women’s sports.

Last August, Albertan male powerlifter “Anne” Andres was suspended for six months after a slew of death threats and harassments against his female competitors.

In February, Andres ranted about why men should be able to compete in women’s competitions, calling for “the Ontario lifter” who opposes this, apparently referring to powerlifter April Hutchinson, to “die painfully.”

Interestingly, while Andres was suspended for six months for issuing death threats, Hutchinson was suspended for two years after publicly condemning him for stealing victories from women and then mocking his female competitors on social media. Her suspension was later reduced to a year.

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Alberta

Alberta’s huge oil sands reserves dwarf U.S. shale

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From the Canadian Energy Centre

By Will Gibson

Oil sands could maintain current production rates for more than 140 years

Investor interest in Canadian oil producers, primarily in the Alberta oil sands, has picked up, and not only because of expanded export capacity from the Trans Mountain pipeline.

Enverus Intelligence Research says the real draw — and a major factor behind oil sands equities outperforming U.S. peers by about 40 per cent since January 2024 — is the resource Trans Mountain helps unlock.

Alberta’s oil sands contain 167 billion barrels of reserves, nearly four times the volume in the United States.

Today’s oil sands operators hold more than twice the available high-quality resources compared to U.S. shale producers, Enverus reports.

“It’s a huge number — 167 billion barrels — when Alberta only produces about three million barrels a day right now,” said Mike Verney, executive vice-president at McDaniel & Associates, which earlier this year updated the province’s oil and gas reserves on behalf of the Alberta Energy Regulator.

Already fourth in the world, the assessment found Alberta’s oil reserves increased by seven billion barrels.

Verney said the rise in reserves despite record production is in part a result of improved processes and technology.

“Oil sands companies can produce for decades at the same economic threshold as they do today. That’s a great place to be,” said Michael Berger, a senior analyst with Enverus.

BMO Capital Markets estimates that Alberta’s oil sands reserves could maintain current production rates for more than 140 years.

The long-term picture looks different south of the border.

The U.S. Energy Information Administration projects that American production will peak before 2030 and enter a long period of decline.

Having a lasting stable source of supply is important as world oil demand is expected to remain strong for decades to come.

This is particularly true in Asia, the target market for oil exports off Canada’s West Coast.

The International Energy Agency (IEA) projects oil demand in the Asia-Pacific region will go from 35 million barrels per day in 2024 to 41 million barrels per day in 2050.

The growing appeal of Alberta oil in Asian markets shows up not only in expanded Trans Mountain shipments, but also in Canadian crude being “re-exported” from U.S. Gulf Coast terminals.

According to RBN Energy, Asian buyers – primarily in China – are now the main non-U.S. buyers from Trans Mountain, while India dominates  purchases of re-exports from the U.S. Gulf Coast. .

BMO said the oil sands offers advantages both in steady supply and lower overall environmental impacts.

“Not only is the resulting stability ideally suited to backfill anticipated declines in world oil supply, but the long-term physical footprint may also be meaningfully lower given large-scale concentrated emissions, high water recycling rates and low well declines,” BMO analysts said.

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