Wednesday

02-04-2025 Vol 19

Alberta Premier: Canada can increase oil supply to US but needs access to new markets too.

Alberta Premier Danielle Smith announced on Monday that Canada intends to continue supplying crude oil to the United States. However, she emphasized the importance of seeking new markets, especially in light of U.S. President Donald Trump’s tariff threats that raise concerns about trade stability. Currently, U.S. tariffs do not apply to Canadian crude, yet Canadian producers must comply with additional paperwork to validate their exports. During her address at the CERAWeek energy conference in Houston, Smith expressed her belief that there should be a zero tariff on this essential resource.

She indicated that Alberta has the potential to increase its oil pipeline export capacity to the U.S. by 2 million barrels per day. The premier highlighted that Alberta will maintain its role as a key energy supplier and support the U.S. in achieving its energy dominance goals, a narrative strongly endorsed during Trump’s administration. Smith also mentioned that various pipeline projects could facilitate this increase in oil exports to the U.S., but stressed that discussions cannot move forward amid ongoing tariff disputes. Meanwhile, she shared that Alberta is on a trajectory to double its oil and gas production, although she did not specify a timeline.

Notably, she stated that Canadian producers are not reducing production in response to tariffs. Looking ahead, Smith indicated a willingness to seek alternative markets if necessary, citing Spain and India as potential consumers for Canadian heavy oil. In her remarks, she also called for expedited approvals for pipeline projects, urging that regulatory obstacles and permitting delays should not impede future growth and expansion in Alberta’s oil sector.

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