Alberta
Prove to us you’re listening! Alberta’s Finance Minister made these 5 requests to his Federal counterpart
From the Province of Alberta
Discussion with Minister Morneau: Minister Toews
President of Treasury Board and Minister of Finance Travis Toews issued the following statement on his discussion with federal Finance Minister Bill Morneau:
“Today, I was pleased to speak with federal Finance Minister Bill Morneau. We discussed the frustration Albertans are feeling over federal policies that are failing our province and the urgent need for action to support the Alberta economy.
“In particular, I asked Minister Morneau to:
“Provide Alberta an equalization rebate to address the problem that federal support for a hurting Alberta economy is arbitrarily capped, while transfer payments out of Alberta to other provinces continue without a cap. This can be solved by an immediate retroactive payment of $1.72 billion to cover what we should have received if the Fiscal Stabilization Program (FSP) were not capped for 2015-16 and 2016-17, plus the outstanding $251 million we are owed under the FSP for the year 2016-17.
“Respect provincial jurisdiction by removing natural resources from the calculation of equalization entitlements, and end the automatic escalation of the floor for equalization to ensure Albertans aren’t paying for ever-increasing equalization while struggling through the deepest recession in a generation.
“Address the inequity caused by the fall 2018 decision to favour manufacturing capital cost allowances over the energy industry when the energy industry was in the depths of an economic crisis. This decision irrationally favoured those who build vehicles that consume oil over the welfare of Albertans working in the energy industry. Providing the energy industry with an equal 100 per cent capital cost allowance would put them on even footing with manufacturers and American competitors.
“Follow through on the platform commitment to give ‘energy workers…training, support and new opportunities needed to succeed in the clean economy’ by investing in green jobs for well reclamation in Alberta.
“And finally, I reiterated that Minister Morneau needs to end the mortgage stress tests needlessly imposed on Albertans because of challenges in other parts of the country.
“Immediate action on these items would back up the words we heard from Prime Minister Trudeau on election night, that he has heard our frustration and wants to be there to support us. I look forward to working with Mr. Morneau on these policies, because a strong Alberta is good for Canada, and a strong Alberta economy will support jobs and growth across Canada.”
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
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