Alberta
Red Deer South UCP constituency board member resigns in response to COVID-19 restrictions

A political firestorm is brewing in Alberta. The province’s response to COVID-19 is leading to a growing rift amongst members of Alberta’s UCP. In an effort to slow the spread of COVID the government’s approach has been to protect hospitals by limiting interactions between people. This has lead to thousands of job losses and months of painful uncertainty for small business owners. Increasingly, individual UCP politicians and Constituency Associations are calling on the Premier to take a new direction. They want the province to shift focus to provide comfortable quarantine sites for vulnerable citizens and the people who work with them, while the rest of Alberta returns to normal. In an effort to protect the fragile economy, a number of constituency associations are considering their strongest possible move. They’re deciding whether they should call for a leadership review which would be a direct challenge to Premier Jason Kenney.
In Central Alberta, Calvin Goulet-Jones a member of the Red Deer South UCP Board has resigned. In his resignation letter (below) Goulet-Jones says the UCP has abandoned the core principals which brought conservatives from different parties together. Janis Nett, President of the Red Deer South UCP Board says other members of the board support the decision Goulet-Jones has made, but they also support Red Deer South MLA Jason Stephan and the party. Nett says remaining board members are hoping a change in direction can be accomplished without fracturing conservatives into two more more parties in the next provincial election. The Red Deer South Constituency Association meets later this week and a discussion about how best to convince party leadership to change direction will be on the agenda.
Below is a post from the Facebook page of former Red Deer South Constituency Association board member Calvin Goulet-Jones.
Here is an excerpt of the my resignation letter to the local UCP board. I share this as a reminder of what the UCP was built on. For context, the content within the letter is relevant to the end of January. Please also note that this was not an admonishment of local board members, but a recognition that I can no longer be involved at this time for the reasons I state below.
It is no secret that times have changed and I strongly believe we have lost sight of the principles I feel we all hold dear. I am saddened when I look at the core principles that the UCP was built upon. I am saddened because it is so evident that the UCP has abandoned their foundation. They are no longer the party that Albertans elected.
Let me elaborate on the principles the UCP was built upon and where we find ourselves today.
Principle 1 – A robust civil society made up of free individuals, strong families, and voluntary associations.
We live in an era right now where individuals are not free. In fact, we live in an era where the freedom to earn an income is fined, where putting in an honest day’s work to put food on the table results in intimidation and strong families are being weakened as a result. This may not affect you, but it affects our society. When freedom is taken away from one individual it is taken away from all of us. Our society is neither robust, nor is it civil. In fact, it can be argued it is breaking down at the hands of our government.
Principle 2 – Freedom of speech, worship and assembly.
No one can take away the freedom to worship, including the government, however they certainly can put a major damper on it. Our government has intimidated and bullied churches severely beyond what could ever be deemed reasonable. Not only in Alberta but across this country the freedom to corporately worship has been taken away. The point is that this is a core principle of the UCP and the government seems to have not given it a second thought.
Principle 3 – Affirm the family as the building block of society and the means by which citizens pass on their values and beliefs and ensure that families are protected from intrusion by government.
The family is the building block of society, meanwhile families are suffering and children are bearing the brunt of the governments decisions. While the child help line has received an unprecedented amount of calls for help our government applies bandaids. This government is deconstructing the building block of society, mental health issues are rampant, and they have shifted the burden of covid and placed it upon the most vulnerable: Our children. They are affected by the very specific decisions that the government makes more than they will ever know.
Furthermore, the government’s logic is beyond reason. To say that a loved one may babysit your kids but that same loved one may not stay for dinner is absurd. To impose a fine to an individual who is struggling with loneliness and needs familiar company, yet allow a contractor to enter homes is mean spirited. I can go on, but I cannot imagine anyone can truly say that this government is busy ensuring that individuals are protected by the intrusion of government.
Principle 4 – Economic freedom in a market economy which encourages the creation of wealth through free enterprise, and protection of the right to own, enjoy and exchange property.
This government has shut down businesses and are bankrupting the individuals who own them. What’s more, this government has taken it further and has called those people who are soon to be homeless ‘selfish’. Alluding to the idea that they are greedy for wanting to earn an income. I find it very sad that the UCP has abandoned this principle as it is cornerstone policy that the UCP was built on. Free markets and private sector job creation. Instead, the UCP continues to actively work towards shutting small businesses down.
Principle 5 – Limited government, including low levels of taxation to help generate economic growth while allowing Albertans to enjoy the fruits of their own labour.
This government has given itself an unprecedented amount of power to intervene in any and every situation it deems fit. This is not limited government. The UCP speaks of low taxation while putting in policies that result in businesses and individuals earning a pittance. This government has literally made it a crime for certain people in our society to enjoy the fruits of their own labour by threatening fines and threatening prison.
Principle 6 – Fiscal responsibility, including balanced budgets, debt reduction, and respect for taxpayers’ money
The government has stifled growth and has ballooned debt. There was a reasonable point (back in March/April) where I can understand some of the decisions that were made. No one, including the government knew what was going on. We are well beyond that point though, yet the government continues to double down. Balanced budgets are a thing of fantasy, and we seem to live in a dream world that Trudeau himself would be proud of – that the government has an endless amount of money.
Principle 7 – Protecting public safety as a primary responsibility of government.
“Two Weeks to bend the curve.” “Stay home, stay safe.” “We are all in this together.” Three catch phrases used by our government to convince the public that abandoning your principles is worth it. Instead, this government is creating a never seen before amount of unrest. People are not happy. People are losing their homes and becoming desperate. It would be easy to say that this is because of the virus, but it is not. It is because of the specific decisions that our government is making.
Alberta
Alberta extracting more value from oil and gas resources: ATB

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

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.
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