Alberta Worried about Venezuelan Oil Competition

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

The provincial leader of oil-rich Alberta is concerned about competition from Venezuela. Canada is the largest crude oil exporter to the U.S. economy.

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Alberta's Premier: Let's Get Going

Concerned about the potential influx of Venezuelan crude oil into the U.S., the provincial leader of oil-rich Alberta urged the Canadian federal government to put more emphasis on trade expansion plans.

"Renewed Venezuelan crude production, supported by United States investment, will ultimately increase the amount of heavy oil bound for U.S. refineries and directly compete with Canadian production for limited refining capacity," Alberta Premier Danielle Smith said in a letter delivered Friday to Prime Minister Mark Carney.

In September, Carney outlined a list of projects that could help build up the economy, ranging from support for the LNG Canada facility in British Columbia to small modular nuclear reactors.

Facing steady ire from U.S. President Donald Trump, Canada is working to halve the amount of trade with the U.S., it's largest trading partner, over the coming years.

Concerns also are mounting over Trump's geopolitical ambitions. After U.S. military forces seized Venezuelan President Nicolas Maduro on his home turf, Trump has refused to rule out force to take control of Greenland, a NATO ally and Canadian neighbor.

Smith's Alberta government, meanwhile, opened a webpage last week dedicated to proposals for a potentially new oil export artery for the western coast of Canada, part of a broader push to expand non-U.S. trade. Her government is financing a proposal for a new crude oil pipeline that would terminate in British Columbia, the Northwest Coast Oil Pipeline. Calgary-based energy companies Enbridge, South Bow and Trans Mountain are serving on an advisory committee.

Alberta's government said it would back preliminary planning for the proposed pipeline with about US$10 million of its own money to support early engineering work, cost estimates and community engagement.

Smith, in her letter to the prime minister, said the time horizon for the new pipeline should be a short one considering recent geopolitical issues.

"Any delay risks ceding market share, losing investment and undermining Canada's competitive position in a rapidly changing global energy landscape," she was quoted by The Canadian Press as saying.

Heavy vs. Heavy

Canada produces the heavier type of crude oil favored by U.S. refineries. Delivering around 4 million barrels per day (BBL/d) of oil, Canadian crude oil accounts for about 60% of the foreign oil delivered to U.S. refiners.

Venezuela, a founder of the Organization of the Petroleum Exporting Countries, which can claim the largest proven oil reserves in the world, accounts for only around 3% of foreign deliveries. Churning out less than a million barrels per day, it could take several years and billions of dollars in investments to bring Venezuela anywhere close to its peak production in the 1970s of around 3.7 million BBL/d.

For more in-depth coverage on the Venezuelan oil sector, see January 6, 2026, article - Big 'Ifs' On Venezuelan Oil Sector Revival.

Trump hosted delegates from major energy companies last week to discuss the Venezuelan energy sector. Chevron Corporation (Houston, Texas) is the only U.S. company with a license to operate there, and various media reports suggested Trump may sideline Exxon Mobil Corporation (Spring, Texas) after its top executive said Venezuela was "uninvestable."

From the Canadian energy sector, the Canadian Association of Petroleum Producers, an industry trade group, said last week that it's too early to make any bets on the future.

"We are monitoring the evolving situation but any commentary on how developments in Venezuela may impact Canadian oil producers at this time would be purely speculative," said Lisa Baiton, the group's president and chief executive officer.

By the Numbers

• $10 million in new pipeline support
• 40% of U.S. foreign oil taken from Canada
• 3.5% taken from Venezuela

Key Takeaways

• Alberta's premier fretting over Venezuelan competition.
• A new pipeline could be developed for Canadian exports.
• Too early for anything beyond speculation, trade group suggests.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).