With new 10 per cent U.S. tariffs on Canada oil and gas exports now in place, the petroleum industry in Alberta is facing a serious and significant new challenge going forward.
Helping to fund hospitals and clinics, schools, roads, bridges, highways and many other things, the province’s petroleum industry is an absolutely vital part of Alberta’s economic well-being, including in this district.
Whether the $70-billion-a-year national industry will be able to weather the storm will probably depend on how long the tariffs last and whether they are increased beyond the current 10 per cent level in the weeks or months ahead.
What is known is that without a viable oil and gas industry, Alberta as a whole would quickly become a much, much poorer jurisdiction.
Lisa Barton, president and CEO of the Canadian Association of Petroleum Producers, says it is difficult to predict how the application of tariffs on Canadian oil and natural gas could end up impacting supply, demand and trade patterns.
“What we do know is that our greatest competitive advantage through economic cycles is our energy advantage,” Barton said in a release.
“Canadian oil and natural gas producers have demonstrated they are innovative and resilient and will find the best ways to mitigate the impact of tariffs and realign themselves to thrive in a dynamic global market.”
There are several steps that can be taken in response to the challenges created by U.S. tariffs, including “streamlining of approvals for major projects already in the federal review process, and continuing to advance emissions reductions technologies to enhance environmental leadership while keeping energy affordable and competitive,” she said.
With a federal election campaign underway, voters should be calling on all candidates to outline their respective plans in support of the petroleum industry.
