Alberta
Alberta: The fuel for global growth in 2025
By Patrick Malkin
In an era defined by economic volatility and political strife, Alberta stands out as a beacon of success, outpacing many areas of North America in growth and innovation. The province’s achievements can be attributed to a combination of prudent governance, resource management, and a commitment to diversification that positions it as a model for other regions.
At the heart of Alberta’s success is its robust economy, driven primarily by its abundant natural resources. The province is rich in oil, gas, and minerals, which have historically fueled its growth. However, what sets Alberta apart is its ability to adapt and evolve. Unlike many resource-dependent regions, Alberta has not rested on its laurels. Instead, it has invested in technology and innovation to enhance its energy sector’s efficiency and sustainability. Initiatives aimed at carbon emissions and promoting innovative energy are gaining traction, demonstrating that Alberta is not merely a fossil fuel powerhouse but a forward-thinking leader, and breadbasket for energy in North America.
Alberta is addressing growing global energy needs by leveraging AI adoption, fueling a robust expansion our energy sector and taking the lead in a new era of energy innovation which could produce worldwide benefits.
The Danielle Smith government has embraced fiscal responsibility and business-friendly policies that attract investment. By maintaining competitive tax rates and fostering a regulatory environment that encourages entrepreneurship, the province has become a magnet for both domestic and international businesses. This strategic approach leads to job creation and economic resilience, even in the face of global downturns. While other regions grapple with increased unemployment and stagnant growth, Alberta’s job market shows strength, reflecting the effectiveness of its policies.
Education and workforce development also play pivotal roles in Alberta’s success story. The province has invested heavily in education and skills training, ensuring that its workforce is equipped to meet the demands of a rapidly changing economy. With a focus on STEM (science, technology, engineering, and mathematics) fields, Alberta is cultivating a generation of innovators and problem solvers who will drive the next wave of economic growth. This commitment to human capital development is a crucial differentiator, setting Alberta apart from regions that have neglected investment in education.
Alberta’s diverse economy is another factor contributing to its success. While the energy sector remains vital, the province has successfully expanded into agriculture, technology, tourism, and manufacturing. This diversification mitigates the risks associated with reliance on a single industry and enhances overall economic stability. As the global economy shifts, Alberta’s varied economic landscape positions it to adapt more readily to change than regions heavily reliant on an individual sector.
Political stability and effective governance cannot be overlooked. Alberta’s leadership under Smith, has prioritized transparency and accountability, fostering public trust and engagement. By listening to the needs of its constituents and responding with effective policy solutions, the government has cultivated a sense of unity and purpose that resonates with Albertans. This contrasts sharply with the polarization seen in other parts of North America, where political gridlock can stifle progress.
Alberta’s success is not merely a product of its natural resources; it is the result of strategic planning, investment in human capital, and a commitment to innovation and diversification. As other regions struggle with economic challenges and levels of economic instability, Alberta serves as a shining example of what can be achieved through sound governance and forward-thinking policies. As we move further into the 21st century, the lessons learned from Alberta’s remarkable rise may hold the key to unlocking potential in other regions, reminding us that success is not merely about resources but about how we choose to leverage them for the greater good.
Patrick Malkin
Deputy Chief of Staff for Operations
Province of Alberta
@MalkinPcos on X
From the Canadian Energy Centre
By Will Gibson
Alberta oil sands projects poised to grow on lower costs, strong reserves
As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.
Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.
“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.
Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.
A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.
While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.
Cenovus Energy’s Christina Lake oil sands project. Photo courtesy Cenovus Energy
“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.
“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.
“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.
Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.
The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.
“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.
“If Ottawa had it’s way Albertans would be left to freeze in the dark”
The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.
The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.
Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.
“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”
“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”
Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.
“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”
“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”
Related information
- Conference Board of Canada socio-economic Impacts of Canada’s 2030 Emissions Reduction Plan – (April 2025)
- Alberta Electric System Operator’s position on Canadian Energy Regulations
Columnist warns Carney Liberals will consider a home equity tax on primary residences
Premier Danielle Smith responds to election of Liberal government
Polls say Canadians will give Trump what he wants, a Carney victory.
Top Used Ford SUVs for Families and Adventurers
-
2025 Federal Election2 days agoNDP Floor Crossers May Give Carney A Majority
-
Bjorn Lomborg2 days agoHow Canada Can Respond to Climate Change Smartly
-
Alberta2 days agoPreston Manning: Canada is in a unity crisis
-
Automotive2 days agoNew federal government should pull the plug on Canada’s EV revolution
-
Business2 days agoNew federal government plans to run larger deficits and borrow more money than predecessor’s plan
-
Business2 days agoScott Bessent says U.S., Ukraine “ready to sign” rare earths deal
-
Mental Health2 days agoHeadline that reads ‘Ontario must pay for surgery to give trans resident both penis and vagina: appeal court’ a sign of the times in Canada
-
Business2 days agoChina’s economy takes a hit as factories experience sharp decline in orders following Trump tariffs