Alberta Talks Energy Partnership at U.S. Industry Forum

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--While the Canadian government looks for trade options outside of North America, the premier of Alberta told delegates at a Colorado forum that her oil-rich province was interested in partnerships.

Much of the U.S. refinery sector is tailored to run the more viscous types of oil found in Canada rather than the light, sweet crude found in domestic shale basins. As such, Canada accounts for about 60% of the foreign crude oil sent to the U.S. market, or around 4 million barrels per day (BBL/d).

Alberta Premier Danielle Smith travelled to Colorado last week to attend a forum of the American Fuel and Petrochemical Manufacturers (AFPM), a trade association representing a membership of 450 energy companies across the United States.

Smith, who leads the United Conservative Party, said both sides of the border benefit from bilateral trade.

"My message in Colorado is clear. Alberta is not just a supplier," she said Friday. "We are a partner, determined to advance North American energy security and prosperity together."

Smith and Colorado Governor Jared Polis (D) signed a memorandum of understanding last year on energy and environmental programs, including carbon capture and storage technology. Bilateral trade with Colorado last year was valued at around USD$4.3 billion. Total bilateral trade with the United States was valued at $117 billion last year, accounting for nearly 90% of total provincial exports.

Smith's statement comes amid declining U.S.-Canadian bilateral ties. U.S. President Donald Trump had suggested Canada become the 51st U.S. state, later hitting cross-border trade with stiff tariffs. That's prompted a race for Canadian trade diversity.

In the past, she's advocated for more of a Canada-centric energy policy, signing a memorandum of understanding with peers in Ontario and Saskatchewan to develop energy trade corridors that reach outside of North America.

The recently passed One Canadian Economy Act, meanwhile, was designed to remove trade barriers and advance nation-building projects, including pipelines. For his part, Prime Minister Carney also proposed the creation of a "First Mile Fund," which would support rail and roadways between energy-extraction sites.

In early September, Carney, who sits opposite from Smith on the political aisle, launched the Major Projects Office from Calgary, set up to facilitate nation-building projects, from ports to energy grids. The federal government, meanwhile, added that the expansion to the Trans Mountain crude oil pipeline to British Columbia is advancing trade diversification efforts.

An expansion completed last year brought the network's capacity to around 890,000 BBL/d, increasing western Canadian crude oil export capacity by 13%. The Trans Mountain pipeline company said last month it was exploring options to increase the pipeline capacity by as much as 300,000 BBL/d.

Smith, meanwhile, was slated to deliver the keynote address to the AFPM before returning to Alberta on Monday. Addressing the G7 early this year, Smith said her province can help address global energy security, claiming Canadian geography "uniquely positions us" as a supplier that can reach outside North America.

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