Alberta Oil and Gas

Alberta is home to a thriving oil and gas sector which is fully supported by the current provincial United Conservative Government. The province relies heavily on oil and gas royalty revenues, with a significant portion of the province’s revenue coming from this sector. For example, in the 2022-23 budget, the province has announced an $11.6 billion surplus, largely due to revenues from the oil and gas sector.

The oil and gas industry has played an important role in Alberta throughout the province’s history, generating a substantial number of jobs within the province. As of 2022, approximately 138,000 people are employed in Alberta’s energy sector. These employment opportunities not only bring financial stability to countless families but also make a significant contribution to the province’s tax revenue. This increased revenue stemming from the oil and gas sector has proven important in assisting the Alberta government in addressing ongoing affordability challenges. Premier Smith has recently announced relief packages totaling $2.8 billion, made possible by using revenue generated from the oil and gas industry. Additionally, the surplus in revenue has empowered the government to allocate funds towards key social programs and capital infrastructure projects.

Moreover, the presence of the oil and gas sector in Alberta has acted as a magnet, drawing in a substantial influx of residents, particularly to major urban centers like Edmonton and Calgary. The allure of employment opportunities and the vibrancy of Alberta’s economy have enticed thousands of individuals to make the decision to relocate, with nearly 40,000 people from Ontario alone making the move in the past year. This influx of newcomers to the province not only strengthens the province’s population but also enriches its cultural diversity and fosters overall growth.

Alberta aspires to become a global supplier of clean, responsibly sourced natural gas and related products. The current mandate of the province’s Ministry of Energy and Minerals focus on carbon-reducing technologies and achieving carbon neutrality by 2050, through the implementation of the province’s Emissions Reduction and Energy Development Plan. This plan aspires to achieve a carbon neutral economy “without compromising affordable, reliable and secure energy for Albertans, Canadians and the world.”

Additionally, the province is committed to investing money from the oil and gas industry into emission reduction technologies. Most recently, during the World Petroleum Congress held in Calgary, Minister of Environment and Protected areas Rebecca Schulz made an announcement that the province will be investing $7 million into a study on small modular reactors (SMRs) and how they could be used on oilsands operations in the future. This is part of a broader provincial mandate of the province to develop a regulatory framework around the technology and explore ways to incentivise oilsands operators to explore the use of SMRs.


“Under no scenario will the Government of Alberta permit the implementation of the proposed federal electricity regulations or contemplated oil and gas emissions cap…. We would strongly suggest the federal government refrain from testing our government’s or

Albertans’ resolve in this regard.”- Premier Danielle Smith

“[Alberta] is a natural gas basin. We are a natural gas province, and we will continue to build natural gas power plants because that is what makes sense in Alberta,” Premier Danielle Smith


 “I do disagree with this idea that there should be no partnerships with oil and gas when we are in a position of it playing still such an important role in our economy.” -Rachel Notley NDP Leader


“Our outlook predicts an economic slowdown that begins toward the end of the year, but the

oil-producing provinces, including Alberta, face the strongest economic growth prospects.

over the next couple of years,” said Marc Desormeaux, Desjardins.


Fossil fuels will continue to be a big part of both Alberta’s economy and will play an important role in the provinces’ relationship with the federal government. The province has shown that it continues to be a global leader in the oil and gas industry by hosting the World Petroleum Congress, which has not been hosted in Canada since 2000.  Future provincial investments into the sector along the lines of technologies for emissions reduction will be the focus in the near future.

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