Alberta’s Danielle Smith meets with Trump at Mar-a-Lago for ‘friendly and constructive’ meeting

Meetings of these kinds in the past would normally have included Canada’s official ambassador, however, Smith has not waited for the Trudeau government to advocate for Canadian energy and instead has gone at it alone.

Premier of Alberta Danielle Smith met with incoming U.S. President Donald Trump at his Mar-a-Lago home to champion “ethically” sourced Albertan oil and gas only days before the president-elect is set to be inaugurated, in what she said was a “friendly and constructive” meeting.

“Over the last 24 hours I had the opportunity to meet President @realdonaldtrump at Mar-a-Lago last night and at his golf club this morning. We had a friendly and constructive conversation during which I emphasized the mutual importance of the U.S. – Canadian energy relationship, and specifically, how hundreds of thousands of American jobs are supported by energy exports from Alberta,” wrote Smith on X about her weekend meeting with Trump.

The unprecedented meeting came at the same time Trump appears to have soured relations with Canadian Liberal elites over his annexation talk.

It also comes after soon-to-be-gone Prime Minister Justin Trudeau met with Trump at Mar-a-lago last month and appeared to refuse to step up and defend the interests of Canadian energy over Trump’s threats to slap high tariffs on Canadian goods once he takes office.

Smith noted about her meeting with Trump that she was able to have “similar discussions” about championing Albertan energy “with several key allies of the incoming administration and was encouraged to hear their support for a strong energy and security relationship with Canada.”

“On behalf of Albertans, I will continue to engage in constructive dialogue and diplomacy with the incoming administration and elected federal and state officials from both parties and will do all I can to further Alberta’s and Canada’s interests,” she wrote.

Since taking office in 2015, the Trudeau government has continued to push a radical environmental agenda like the agendas being pushed by the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”

Smit, on the other hand, has been a fierce opponent of Trudeau’s green energy agenda and an advocate for the oil and gas industry.

She will be attending Trump’s inauguration later next week.

Observer notes Trump made ‘beeline’ for Smith to meet her at Mar-a-Lago event

Political analyst for the Calgary Sun Rick Bell, who knows Smith and speaks with her regularly, noted about her meeting with Trump that when “Trump and his family and entourage” arrived he made “a beeline for Smith. He has obviously been told she is the premier of Alberta.”

“Smith, as you know, has recently been speaking non-stop about oil and gas and is no fan of tariffs,” Bell wrote.

Bell noted how Smith and Trump spoke about “energy, about oil and gas, about Alberta and Canada,” adding that she told him that production of Alberta oil is “ramping up in a big way and the U.S. buys a lot of Alberta oil.”

“Smith asks if Trump wants more of our oil. Trump does. It is by far Canada’s biggest export to the Americans,” wrote Bell.

Smith, in her message about her meeting with Trump, noted that Canada and the United States are both “proud and independent nations with one of the most important security alliances on earth and the largest economic partnership in history.”

She emphasized how Alberta needs to preserve its “independence while we grow this critical partnership for the benefit of Canadians and Americans for generations to come.”

Canada has the third largest oil reserves in the world, with most of it being in Alberta, which is produced ethically, unlike in other nations.

Smith’s meeting with Trump is unusual in that it has happened right before he will become president. Meetings of these kinds in the past would normally have included Canada’s official ambassador, however, Smith has not waited for the Trudeau government to advocate for Canadian energy and instead has gone at it alone.

Recently, Trump has drawn the ire of many Canadian politicians, including Conservatives, after he said rather brazenly last week that he was considering using “economic force” to make Canada the 51st U.S. state.

He claimed that there is a $200 billion trade deficit between Canada and the U.S. regarding spending on “subsidies” and the fact the U.S. military is there to also “protect Canada.”

Smith and others did not seem too offended by Trump’s remarks, most likely realizing they may be part of his negotiating strategy.

Conservative Party of Canada leader Pierre Poilievre, who likely will soon be the nation’s next prime minister, however, had choice words for Trump.

Trump’s comments came only a day after Trudeau announced he plans to step down as Liberal Party leader once a new leader has been chosen. He was approved by Governor General Mary Simon to prorogue parliament until March 24. This means he is still serving as prime minister, but all parliamentary business has been stopped.

Smith was against forced COVID jabs, her United Conservative government has in recent months banned men from competing in women’s sports came and passed a bill banning so-called “top and bottom” surgeries for minors as well as other extreme forms of transgender ideology. 

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Alberta

Alberta extracting more value from oil and gas resources: ATB

Published on February 7, 2025

Todayville

From the Canadian Energy Centre

By Will Gibson

Investment in ‘value-added’ projects more than doubled to $4 billion in 2024

In the 1930s, economist Harold Innis coined the term “hewers of wood and drawers of water” to describe Canada’s reliance on harvesting natural resources and exporting them elsewhere to be refined into consumer products.

Almost a century later, ATB Financial chief economist Mark Parsons has highlighted a marked shift in that trend in Alberta’s energy industry, with more and more projects that upgrade raw hydrocarbons into finished products.

ATB estimates that investment in projects that generate so-called “value-added” products like refined petroleum, hydrogen, petrochemicals and biofuels more than doubled to reach $4 billion in 2024.

“Alberta is extracting more value from its natural resources,” Parsons said.

“It makes the provincial economy somewhat more resilient to boom and bust energy price cycles. It creates more construction and operating jobs in Alberta. It also provides a local market for Alberta’s energy and agriculture feedstock.”

The shift has occurred as Alberta’s economy adjusts to lower levels of investment in oil and gas extraction.

While overall “upstream” capital spending has been rising since 2022 — and oil production has never been higher — investment last year of about $35 billion is still dramatically less than the $63 billion spent in 2014.

Parsons pointed to Dow’s $11 billion Path2Zero project as the largest value-added project moving ahead in Alberta.

The project, which has support from the municipal, provincial and federal governments, will increase Dow’s production of polyethylene, the world’s most widely used plastic.

By capturing and storing carbon dioxide emissions and generating hydrogen on-site, the complex will be the world’s first ethylene cracker with net zero emissions from operations.

Other major value-added examples include Air Products’ $1.6 billion net zero hydrogen complex, and the associated $720 million renewable diesel facility owned by Imperial Oil. Both projects are slated for startup this year.

Parsons sees the shift to higher value products as positive for the province and Canada moving forward.

“Downstream energy industries tend to have relatively high levels of labour productivity and wages,” he said.

“A big part of Canada’s productivity problem is lagging business investment. These downstream investments, which build off existing resource strengths, provide one pathway to improving the country’s productivity performance.”

Heather Exner-Pirot, the Macdonald-Laurier Institute’s director of energy, natural resources and environment, sees opportunities for Canada to attract additional investment in this area.

“We are able to benefit from the mistakes of other regions. In Germany, their business model for creating value-added products such as petrochemicals relies on cheap feedstock and power, and they’ve lost that due to a combination of geopolitics and policy decisions,” she said.

“Canada and Alberta, in particular, have the opportunity to attract investment because they have stable and reliable feedstock with decades, if not centuries, of supply shielded from geopolitics.”

Exner-Pirot is also bullish about the increased market for low-carbon products.

“With our advantages, Canada should be doing more to attract companies and manufacturers that will produce more value-added products,” she said.

Like oil and gas extraction, value-added investments can help companies develop new technologies that can themselves be exported, said Shannon Joseph, chair of Energy for a Secure Future, an Ottawa-based coalition of Canadian business and community leaders.

“This investment creates new jobs and spinoffs because these plants require services and inputs. Investments such as Dow’s Path2Zero have a lot of multipliers. Success begets success,” Joseph said.

“Investment in innovation creates a foundation for long-term diversification of the economy.”

Alberta

Alberta government must restrain spending in upcoming budget to avoid red ink

Published on February 7, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Milagros Palacios

Whether due to U.S. tariffs or lower-than-expected oil prices, the Smith government has repeatedly warned Albertans that despite a $4.6 billion projected budget surplus in 2024/25, Alberta could soon be in the red. To help avoid this fate, the Smith government must restrain spending in its upcoming 2025 budget.

These are not simply numbers on a page; budget deficits have real consequences for Albertans. For one, deficits fuel debt accumulation. And just as Albertans must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from programs such as health care and education, or potential tax relief. This fiscal year, provincial government debt interest costs will reach a projected $650 per Albertan.

And while many risk factors are out of the government’s direct control, the government can control its own spending.

In its 2023 budget, the Smith government committed to keep the rate of spending growth to below the rate of inflation and population growth. This was an important step forward after decades of successive governments substantially increasing spending during good times—when resource revenues (including oil and gas royalties) were relatively high (as they are today)—but failing to rein in spending when resource revenue inevitably declined.

But here’s the problem. Even if the Smith government sticks to this commitment, it may still fall into deficit. Why? Because this government has spent significantly more than it originally planned in its 2022 mid-year plan (the Smith government’s first fiscal update). In other words, the government’s “restraint” is starting from a significantly higher base level of spending. For example, this fiscal year it will spend $8.2 billion more than it originally planned in its 2022 mid-year plan. And inflation and population growth only account for $3.1 billion of this additional spending. In other words, $5.1 billion of this new spending is unrelated to offsetting higher prices or Alberta’s growing population.

Because of this higher spending and reliance on volatile resource revenue, red ink looms.

Indeed, while the Smith government projects budget surpluses over the next three fiscal years, fuelled by historically high resource revenue, if resource revenue was at its average of the last two decades, this year’s $4.6 billion projected budget surplus would turn into a $5.8 billion deficit. And projected budget surpluses in 2025/26 and 2026/27 would flip to budget deficits. To be clear, this is not a far-fetched scenario—resource revenue plummeted by nearly 70 per cent in 2015/16.

In contrast, if resource revenue fell to its average (again, based on the last two decades) but the Smith government held to its original 2022 spending plan, Alberta would still have a balanced budget in 2026/27.

Bottom line; had the Smith government not substantially increased spending over the last two years, Alberta’s spending levels today would align with more stable ongoing levels of revenue, which would put Alberta on more stable fiscal footing in the years to come.

Premier Smith has warned Albertans a budget deficit may be on the way. To mitigate the risk of red ink moving forward, the Smith government should show real spending restraint in its 2025 budget.