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Alberta

Working to avoid future US tariffs, Alberta signs onto U.S. energy pact

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Louisiana Governor Jeff Landry and New Hampshire Governor Chris Sununu of the Governors’ Coalition for Energy Security

Premier Danielle Smith has joined the Governors’ Coalition for Energy Security to further support advocacy of Alberta’s energy and environmental interests with key U.S. states.

The coalition was established in September 2024 by U.S. State governors Jeff Landry (Louisiana) and Chris Sununu (New Hampshire) with the aim of ensuring energy security, lower energy costs, increased reliability, sustainable economic development and sensible management of energy resources and the environment. With 12 U.S. states already signatories to the coalition, Alberta is the first non-U.S. state to enter into this agreement.

By expanding energy ties with the U.S. and promoting cross-border energy trade and participation, Alberta is helping to build upon its North American Energy strategy. Alberta already accounts for 56 per cent of all oil imports to the U.S. – twice as much as Mexico, Saudi Arabia and Iraq combined – which is helping to drive job creation and prosperity on both sides of the border. Natural gas also plays an important role in North America’s energy mix. Alberta is the largest producer of natural gas in Canada and remains positioned to support the U.S. in filling their domestic supply gaps.

“I am honoured to join the Governors’ Coalition for Energy Security and would like to extend my sincere thanks to governors Landry and Sununu for the invitation. Alberta plays a vital role in North American energy security, serving as the largest supplier of crude oil and natural gas to the United States. With 200 billion barrels of recoverable oil, 200 trillion cubic feet of recoverable natural gas, significant natural gas liquids and ample pore space for carbon capture, Alberta’s contribution is set to grow even further as we look to work with the Trump Administration and other U.S. partners to increase our pipeline capacity to our greatest friend and ally, the United States. We are proud to collaborate with this coalition of allied states in advancing energy security, reliability and affordability for Americans and Canadians.”

Danielle Smith, Premier

“Our mission as an organization has not changed but Alberta’s welcome arrival to our group sparked a conversation about what our core mission is, and that is ensuring energy security in all its forms. Our members all share the common goal of enhancing and protecting energy options for our people and businesses, which leads to lower energy costs, increased reliability, sustainable economic development and wise management of energy resources and the environment. I welcome Premier Smith and the insights she will bring as the leader from a fellow energy-producing province, that like my state, is under a federal system of government where national imperatives are not always aligned with state or provincial interests.”

Jeff Landry, governor of Louisiana

Alberta is a global leader in emissions reduction technology and clean energy solutions. The province has captured about 14 million tonnes of carbon dioxide through carbon capture, utilization and storage technology, and has the ability to support the U.S. in developing new infrastructure and supply chains for future energy markets in the areas of hydrogen, renewables, small modular reactors and others.

Alberta is also unlocking its untapped geological potential to help meet the increasing demand for minerals – many of which are used worldwide to manufacture batteries, cell phones, energy storage cells and other products. This includes the province’s lithium sector where Alberta’s government is supporting several innovative projects to develop new ways to extract and concentrate lithium faster and with higher recovery rates that are less capital and energy intensive and have a smaller land-use footprint.

As part of this coalition, Alberta looks forward to sharing best practices with states that already have expertise in these areas.

Quick facts

  • The U.S. is Alberta’s largest trading partner, with C$188 billion in bilateral trade in 2023.
  • In 2023, energy products accounted for approximately C$133.6 billion, or more than 80 per cent of Alberta’s exports to the U.S.
  • The Governors’ Coalition for Energy Security’s 12 signatory states include Louisiana, New Hampshire, Indiana (Governor Eric Holcomb), Alabama (Governor Kay Ivey), Georgia (Governor Brian Kemp), Tennessee (Governor Bill Lee), South Dakota (Governor Kristi Noem), Mississippi (Governor Tate Reeves), Arkansas (Governor Sarah Huckabee Sanders), Oklahoma (Governor Kevin Stitt), Wyoming (Governor Mark Gordon) and Virginia (Governor Glenn Youngkin).

 

Alberta

Carney government should end damaging energy policies amid separatist sentiment in Alberta

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From the Fraser Institute

By Tegan Hill

Following last month’s Liberal election victory, and after a decade of damaging federal policies by the Trudeau government, some Albertans are calling for a referendum on separation. While Premier Danielle Smith said she does not support separation she “will honour” the referendum process. And according to a recent poll, more than one-third of Albertans are open to leaving Canada. But whether or not the referendum actually happens, one thing is clear—Albertans have reason to be frustrated with confederation.

In our current system, Ottawa collects taxes from people and businesses across the country then transfers that money to Canadians for federal and national programs including the Canada Pension Plan (CPP) and employment insurance. Albertans contribute disproportionately to this system thanks to the province’s relatively high rates of employment, higher average incomes and younger population.

For example, from 1981 to 2022 (the latest year of available data), Albertans’ net contribution to the CPP—meaning the amount Albertans paid into the program over and above what retirees in Alberta received in CPP benefit payments—was $53.6 billion. British Columbia was the only other province where workers paid more into the CPP than retirees received in benefits—and Alberta’s contribution was six times greater than B.C.’s contribution.

On equalization—Canada’s transfer program aimed at ensuring each province can provide comparable levels of public services—Alberta has not received payments since 1964/65. In 2022 (the latest year of available data), the federal government spent $21.9 billion on equalization while 13.5 per cent of total federal revenue came from Alberta, which means Alberta taxpayers contributed an estimated $3.0 billion to the equalization program that year—while receiving no payments.

More broadly, Alberta’s total net contribution to federal finances and national programs (that is, total federal taxes and payments paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion from 2007 to 2022—more than five times more than the net contribution from British Columbians or Ontarians (the only other two net contributors) despite Alberta’s smaller population.

So that’s the reality—Alberta massively overcontributes to federal and national programs. But that’s not necessarily a problem, in and of itself. The problem is that despite Alberta’s outsized importance within Canada, Albertans have faced a barrage of federal policies that disproportionately and negatively impact the province including Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off B.C.’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous “net-zero” targets, and so on.

On the campaign trail, Prime Minister Mark Carney promised to keep the emissions cap and Bill C-69 (which opponents call the “no more pipelines act”). Yet in a recent interview with CTV, Carney said he will “change things at the federal level that need to be changed in order for projects to move forward” adding that he may eventually remove both the emissions cap and Bill C-69.

That would be welcomed news in Alberta, which continues to punch above its economic weight despite federal policies that prevent the province from reaching its full economic potential. And any policies that restrict Alberta ultimately limit prosperity in Canada.

Albertans may soon face a referendum on separation. The rest of Canada should understand why so many Albertans are frustrated with the status quo. Federal policies specifically target their province’s energy industry despite their disproportionate contribution to the federation. It’s time to undo these federal policies, for the benefit of all Canadians.

Tegan Hill

Director, Alberta Policy, Fraser Institute
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Alberta

Alberta Cabinet shuffle reflects new ministries. Adriana LaGrange in charge of “health care refocusing”

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Premier Danielle Smith has made changes to cabinet to address key priorities of Albertans.

Following the conclusion of the spring sitting of the legislature, and the resignation of the Honourable Ric McIver from his cabinet position to serve as Speaker of the Legislative Assembly of Alberta, Premier Smith has made changes to her cabinet and caucus leadership.

The new cabinet comprises both seasoned and newly appointed ministers, reflecting Alberta’s diverse population. Together, they are committed to serving all Albertans and striving to unlock the province’s full potential. Those members taking on new roles include:

  • Minister of Advanced Education, Myles McDougall
  • Minister of Hospital and Surgical Health Services, Matt Jones
  • Minister of Indigenous Relations, Rajan Sawhney
  • Minister of Jobs, Economy, Trade, and Immigration, Joseph Schow
  • Minister of Mental Health and Addiction, Rick Wilson
  • Minister of Municipal Affairs, Dan Williams
  • Minister of Primary and Preventative Health Services, Adriana LaGrange
  • Minister of Tourism and Sport, Andrew Boitchenko
  • Associate Minister of Multiculturalism, Mohammed Yaseen
  • Associate Minister of Water, Grant Hunter

Additionally, Grant Hunter will be serving as the Chief Government Whip.

The Honourable Demetrios Nicolaides will be adding childcare to his portfolio and become the Minister of Education and Childcare. The Honourable Jason Nixon will also see his title changed to the Minister of Assisted Living and Social Services to reflect his oversight of Assisted Living Alberta.

“I’m eager to collaborate with this dedicated team to fulfill the commitments we made to Albertans during the last election. Our government has already addressed many key priorities of Albertans, but we know there is more work to do, and I’m excited to continue working alongside each of my cabinet colleagues as we move forward an ambitious agenda for Albertans.”

Danielle Smith, Premier

This new cabinet also serves as the critical next step in the journey to refocus Alberta’s health care system. Each of the four health care agencies – Primary Care Alberta, Acute Care Alberta, Assisted Living Alberta, and Recovery Alberta – are now established, and will now each have a corresponding minister responsible. Minister LaGrange will continue to oversee the health care re-focusing efforts.

“I’m pleased to continue the important work of re-focusing our health care system with the support of my colleagues. Moving forward, we will work together to ensure that patients in our health care system have an integrated seamless experience and get the care they need when and where they need it.”

Adriana LaGrange, Minister of Primary and Preventative Health Services

Cabinet members will be tasked with working collaboratively to complete the important work that Albertans voted for, including continuing to grow the economy, keep life affordable, reform the health care system, fight crime, and defend Alberta from punitive federal government policies.

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