02 Apr Interview with Danielle Smith, Alberta Premier, Canada
What are the main trends shaping Alberta’s economic landscape today?
Alberta faced a tough economic downturn from 2014 to 2022 due to horizontal multi-stage fracking, which lowered oil and gas prices – our key industries. However, post-COVID, we have seen explosive growth. More people are moving to Alberta than any other province, thanks in part to our pro-business policies. We have the lowest corporate tax rate in Canada, competitive even with 44 US states. Our province also leads in weekly earnings and workforce participation. While unemployment remains relatively high, it’s largely due to the influx of job seekers. Investment is booming across diverse industries, from oil and gas to renewables like solar, wind, hydrogen and geothermal. We are also developing critical minerals, including lithium and uranium, in collaboration with Saskatchewan. Our free-market electricity system is preparing for demand to double in 25 years, with data centers showing strong interest – already requesting 10,000 megawatts of power.
Alberta’s economic future is bright, fueled by innovation and investment. The province’s universities produce top graduates in both academia and technical fields, especially engineering. Tax incentives have attracted major investments, such as Dow Chemicals’ net-zero petrochemical plant and Heidelberg’s soon-to-be-approved net-zero cement project. Film and television tax credits have drawn major productions, while a 12% tax credit has driven a thriving AgriFood processing sector. Our forestry industry benefits from a northern climate that produces high-value fiber. With strong US ties and expanding global markets, Alberta’s opportunities are limitless.
How is the government addressing US tariffs to strengthen Alberta’s industries?
We have a three-part approach to counter high US tariffs, which aim to limit American purchases of Canadian goods. If our industries are harmed, we must support them by buying more locally and nationally. At the same time, we will continue trade with countries that honor free trade agreements. The immediate focus is on agriculture, as food is deeply integrated into our economy. Alberta exports 300,000 head of cattle, canola for food oil and biodiesel, fresh greenhouse vegetables and grains like barley and wheat – all of which could be impacted. While we can only consume so much locally, expanding into new markets is crucial. If our farmers and producers face losses, we must step up to ensure they stay in business.
You’ve described Canadian oil and gas as a “trump card” and a “secret weapon” in trade disputes. How does your administration plan to use Canadian oil strategically to counter tariffs?
Canada already supplies the US with 4 million barrels of oil per day, supporting refineries and keeping energy prices low. Instead of cutting back, we should double that supply. By backfilling for the US, we enable them to export more WTI oil internationally and advance their strategic security interests. This is what I mean by energy as a “trump card” – working together for a tariff-free relationship that strengthens North American energy dominance. Canada has 1.8 trillion barrels of reserves, with 200 billion recoverable and improving technology. We also have vast natural gas and liquids. If the US wants true energy dominance, Canada is essential. Let’s do more business and lead together.
How is Alberta transitioning from being an oil industry hub to a leader in cleantech innovation?
We see Alberta as the “Texas of the North” because of our shared foundations in cattle and oil. Like Texas, we are also expanding into green technology, ranking among the top regions for solar, wind and hydrogen. Already a leading hydrogen producer for industrial use, we have fully mapped out our pore space in Alberta. We are scaling up with 25 carbon capture hubs, having stored over 13 million tons of CO₂. This infrastructure has attracted major investments like Dow Chemical’s net-zero petrochemical plant and Heidelberg’s net-zero cement. Hydrogen is emerging as a key fuel for transportation, home heating, and farm equipment, with a 100% hydrogen-powered community already in place. Geothermal is another growth area – Eavor Technologies, with an at-scale project in Germany, is exploring applications using Alberta’s drilling expertise. We have also discovered lithium in our brines, opening new opportunities in critical minerals. Meanwhile, the province hosts several data centers, attracting major AI players due to low-cost natural gas. Alberta isn’t replacing oil and gas – we are diversifying, ensuring a strong future in both traditional and emerging industries.
What measures are being implemented to foster technological innovation and startup growth in Alberta?
Alberta has cultivated a thriving startup ecosystem, especially through initiatives like Startup TNT, which connects entrepreneurs and investors. Venture capital has surged from $34 million in 2019 to $700 million annually, fuelling further growth and innovation. The Alberta Enterprise Corporation provides venture capital funding for proven concepts, while Alberta Innovates helps commercialize research from our institutes, managing significant research funds through an independent board.
What strategies does Alberta have in place to boost tourism and attract more visitors?
Our strategy focuses on two key areas: expanding tourism through sporting events and enhancing resort development. We’re marketing Alberta as a prime location for national competitions like basketball, volleyball, and sledge hockey, alongside major events, including the G7 summit that will be hosted in Kananaskis.
Alberta is developing more resorts, including year-round destinations for activities like mountain biking, fishing, and hiking, to compete with British Columbia’s offerings. We’re also discussing expanding rail connections between Calgary, Edmonton, and airports to improve accessibility. Every community in Alberta offers something unique, from dinosaur museums to hiking trails and camping. Our goal is not only to put major resort developments on the international map but also to highlight the charm of smaller towns. We are confident that doubling our tourism spend is very achievable.
How is Alberta expanding its international presence and attracting global investment?
Alberta currently has 16 international offices, with a focus on diplomatic advocacy, including offices in Washington DC, Shanghai and Düsseldorf. We are also opening new offices in Abu Dhabi and Mumbai to expand into the Middle East, Africa and India. Each country presents unique opportunities, whether in agriculture, oil, gas or technology, and having an international presence helps build awareness and investment connections.
Our Sovereign Wealth Fund, originally funded with oil and gas royalties, is growing. We plan to increase it from $26 billion by the end of this year to $250 billion by 2050, inspired by the success of Middle Eastern, Norwegian and Alaskan funds. This fund will help attract investment to Alberta and enable global partnerships.
How do you envision the future of Alberta’s collaboration with US states?
Canada, particularly Alberta, has a strong trade relationship with the US, being the top trading partner for 36 states. Since 2012, Canada has been the US’s dominant energy supplier, not Saudi Arabia. Alberta’s heavy oil is a perfect match for US refineries, which rely on this specific type of oil that other countries like Iran, Iraq, and Venezuela provide. This partnership enables the US to produce everything from aviation fuel to asphalt. As US production declines, Alberta’s secure and abundant energy supply remains essential for meeting their growing demand, and it’s a relationship that will continue to benefit both sides.
The US consumes 21 million barrels of oil daily, but produces only 13 million. They need to source it from somewhere, so it might as well be from us. Canadians are here to help. We just want to be the friendly, helpful neighbour. We know the US has a lot on its plate, but we want to continue doing business and get back to the strong relationship we’ve had for decades. I hope we can do that soon.
Looking back on your leadership, what moments stand out and what are your aspirations for Alberta’s future?
It’s been a rollercoaster. When I first ran for leadership, Canada still had COVID-19 travel restrictions, and the US required proof of vaccination to cross the border. I took an approach of moving forward – encouraging creativity and investment after two years of stagnation. Albertans have responded incredibly well, and that’s why we are leading on so many issues.
One surprise has been the battle with the federal government over our autonomy to build more pipelines. We have gone from discussions about shutting down our industry to plans for doubling it, and our industry is finding ways to do so. A few years ago, AI data centers weren’t even on the radar, but now we are seeing massive interest. Also, the conversation has shifted. While solar, wind and batteries were once seen as the future, now there’s a broader understanding that affordable energy, including natural gas, is crucial for powering an industrialized economy.
A couple of years ago, cancel culture and wokeism were everywhere, with anyone deviating from the narrative being attacked. Now, I feel like free speech is returning. People should be allowed to post their opinions to social media without losing their jobs or being ostracized. This shift has been surprising, and we have been at the forefront of it. There is a conservative revival happening, and we were early in embracing it. The election wasn’t easy, as we were still dealing with the tail end of that progressive wave, but now we have turned a corner and are ahead of the curve. It’s a great place to be.