Alberta
Alberta’s oil bankrolls Canada’s public services
This article supplied by Troy Media.
By Perry Kinkaide and Bill Jones
It’s time Canadians admitted Alberta’s oilpatch pays the bills. Other provinces just cash the cheques
When Canadians grumble about Alberta’s energy ambitions—labelling the province greedy for wanting to pump more oil—few stop to ask how much
money from each barrel ends up owing to them?
The irony is staggering. The very provinces rallying for green purity are cashing cheques underwritten not just by Alberta, but indirectly by the United States, which purchases more than 95 per cent of Alberta’s oil and gas, paid in U.S. dollars.
That revenue doesn’t stop at the Rockies. It flows straight to Ottawa, funding equalization programs (which redistribute federal tax revenue to help less wealthy provinces), national infrastructure and federal services that benefit the rest of the country.
This isn’t political rhetoric. It’s economic fact. Before the Leduc oil discovery in 1947, Alberta received about $3 to $5 billion (in today’s dollars) in federal support. Since then, it has paid back more than $500 billion. A $5-billion investment that returned 100 times more is the kind of deal that would send Bay Street into a frenzy.
Alberta’s oilpatch includes a massive industry of energy companies, refineries and pipeline networks that produce and export oil and gas, mostly to the U.S. Each barrel of oil generates roughly $14 in federal revenue through corporate taxes, personal income taxes, GST and additional fiscal capacity that boosts equalization transfers. Multiply that by more than 3.7 million barrels of oil (plus 8.6 billion cubic feet of natural gas) exported daily, and it’s clear Alberta underwrites much of the country’s prosperity.
Yet many Canadians seem unwilling to acknowledge where their prosperity comes from. There’s a growing disconnect between how goods are consumed and how they’re produced. People forget that gasoline comes from oil wells, electricity from power plants and phones from mining. Urban slogans like “Ban Fossil Fuels” rarely engage with the infrastructure and fiscal reality that keeps the country running.
Take Prince Edward Island, for example. From 1957 to 2023, it received $19.8 billion in equalization payments and contributed just $2 billion in taxes—a net gain of $17.8 billion.
Quebec tells a similar story. In 2023 alone, it received more than $14 billion in equalization payments, while continuing to run balanced or surplus budgets. From 1961 to 2023, Quebec received more than $200 billion in equalization payments, much of it funded by revenue from Alberta’s oil industry..
To be clear, not all federal transfers are equalization. Provinces also receive funding through national programs such as the Canada Health Transfer and
Canada Social Transfer. But equalization is the one most directly tied to the relative strength of provincial economies, and Alberta’s wealth has long driven that system.
By contrast to the have-not provinces, Alberta’s contribution has been extraordinary—an estimated 11.6 per cent annualized return on the federal
support it once received. Each Canadian receives about $485 per year from Alberta-generated oil revenues alone. Alberta is not the problem—it’s the
foundation of a prosperous Canada.
Still, when Alberta questions equalization or federal energy policy, critics cry foul. Premier Danielle Smith is not wrong to challenge a system in which the province footing the bill is the one most often criticized.
Yes, the oilpatch has flaws. Climate change is real. And many oil profits flow to shareholders abroad. But dismantling Alberta’s oil industry tomorrow wouldn’t stop climate change—it would only unravel the fiscal framework that sustains Canada.
The future must balance ambition with reality. Cleaner energy is essential, but not at the expense of biting the hand that feeds us.
And here’s the kicker: Donald Trump has long claimed the U.S. doesn’t need Canada’s products and therefore subsidizes Canada. Many Canadians scoffed.
But look at the flow of U.S. dollars into Alberta’s oilpatch—dollars that then bankroll Canada’s federal budget—and maybe, for once, he has a point.
It’s time to stop denying where Canada’s wealth comes from. Alberta isn’t the problem. It’s central to the country’s prosperity and unity.
Dr. Perry Kinkaide is a visionary leader and change agent. Since retiring in 2001, he has served as an advisor and director for various organizations and founded the Alberta Council of Technologies Society in 2005. Previously, he held leadership roles at KPMG Consulting and the Alberta Government. He holds a BA from Colgate University and an MSc and PhD in Brain Research from the University of Alberta.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.
From LifeSiteNews
A government survey revealed strong public support, particularly among parents, for restricting or banning sexually explicit books.
Albertans are largely opposed to their children viewing pornography in school libraries, according to government polling.
In a June 20 press release, the Government of Alberta announced that their public engagement survey, launched after the discovery of sexually explicit books in school libraries, found that Albertans strongly support removing or limiting such content.
“Parents, educators and Albertans in general want action to ensure children don’t have access to age-inappropriate materials in school libraries,” Demetrios Nicolaides, Minister of Education and Childcare, said.
“We will use this valuable input to guide the creation of a province-wide standard to ensure the policy reflects the priorities and values of Albertans,” he continued.
READ: Support for traditional family values surges in Alberta
The survey, conducted between May 28 to June 6, received nearly 80,000 responses, revealing a widespread interest in the issue.
While 61 percent of respondents said that they had never previously been concerned about children viewing sexually explicit content in libraries, most were opposed to young children viewing it. 34 percent said children should never be able to access sexually explicit content in school libraries, while 23 percent believed it should be restricted to those aged 15 and up.
Similarly, 44 percent of parents of school-aged children were supportive of government regulations to control content in school libraries. Additionally, 62 percent of respondents either agreed or strongly agreed that “parents and guardians should play a role in reporting or challenging the availability of materials with sexually explicit content in school libraries.”
READ: Alberta Conservatives seeking to ban sexually graphic books from school libraries
The polling results come after the Conservative Alberta government under Premier Danielle Smith announced that they are going ahead with plans to eventually ban books with sexually explicit as well as pornographic material, many of which contain LGBT and even pedophilic content, from all school libraries, on May 27.
At the time, Nicolaides revealed that it was “extremely concerning” to discover that sexually explicit books were available in school libraries.
The books in question, found at multiple school locations, are Gender Queer, a graphic novel by Maia Kobabe; Flamer, a graphic novel by Mike Curato; Blankets, a graphic novel by Craig Thompson; and Fun Home, a graphic novel by Alison Bechdel.
Alberta
Alberta’s government is investing $5 million to help launch the world’s first direct air capture centre at Innisfail
Taking carbon capture to new heights
Alberta’s government is investing $5 million from the TIER fund to help launch the world’s first direct air capture centre.
Alberta is a global leader in environmentally responsible energy production and reducing emissions, already home to two of the largest carbon capture, utilization and storage facilities operating in North America, and seeing emissions decline across the economy.
Most of the current technologies used around the world focus on facilities and worksites. Direct air capture offers a potential new way of removing greenhouse gas emissions straight from the air. If successful, the potential is huge.
Through Emissions Reduction Alberta, $5 million is being invested from the industry-led TIER program to help Deep Sky in the design, build and operation of the world’s first direct air capture innovation and commercialization centre in Innisfail. This funding will help Alberta keep showing the world how to reduce emissions while creating jobs and increasing responsible energy production.
“We don’t need punitive taxes, anti-energy regulations or nonsensical production caps to reduce emissions. Our approach is to support industry, Alberta expertise and innovation by helping to de-risk new technology. Direct air capture has some potential and is being looked at in other jurisdictions, so it’s great to see companies choosing Alberta as a place to invest and do business in.”
“Alberta companies are leaders in developing carbon capture and storage technology. Deep Sky has the potential to take the next major step in decarbonization through direct air capture. These advancements and investments through the TIER fund are a major reason why global demand is increasing for our responsibly produced energy products.”
“Investing in Deep Sky supports Alberta’s global leadership in emissions reduction. This project accelerates cutting-edge carbon removal technologies, creates jobs and builds a platform for innovation. By capturing legacy emissions, it complements other climate solutions and positions Alberta at the forefront of a growing carbon removal economy.”
“We are thrilled to be supported by the Government of Alberta through Emissions Reduction Alberta’s investment to help deliver a world first in carbon removals right here in Alberta. This funding will be instrumental in scaling direct air capture and creating an entirely new economic opportunity for Alberta, Canada and the world.”
Deep Sky is helping establish Alberta as a global leader in carbon removal – an emerging field that is expected to grow exponentially over the next decade. The new centre is located on a five-acre site and will feature up to 10 direct air capture units, allowing multiple technologies and concepts to be tested at once. Starting this summer, Deep Sky Alpha’s units will begin pulling in air, trapping carbon dioxide, transporting it by truck, and safely storing it underground at an approved site in Legal.
This new technology will give Alberta’s oil and gas, energy and utilities, cement and heavy industry, and agriculture and agri-tech sectors new technologies to reduce emissions, while creating local jobs and reinforcing Alberta’s position as a global leader in responsible energy development.
Quick facts
- Deep Sky aims to capture 3,000 tonnes of emissions each year and estimates creating 80 construction jobs, 15 permanent jobs, and more than $100 million in local economic benefit over the next 10 years, including regional development in rural communities.
- Research shows that carbon capture technology is safe and effective. Careful site selection and rigorous monitoring serve to ensure the injected carbon dioxide remains sequestered thousands of metres below the surface, with no impact on fresh water, plants or the soil.
- Provincial funding for this project is delivered through Emissions Reduction Alberta’s Continuous Intake Program, funded by Alberta’s industry-funded Technology Innovation and Emissions Reduction (TIER) system.
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